Perth Amboy Approves PILOT for Kushner Companies’ $200M Waterfront Development

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Perth Amboy Police Station
The former Perth Amboy Police Headquarters and First Square building. Image via Google Maps.

Real estate developer Kushner Companies has secured a tax break that will allow it to redevelop the former Perth Amboy Police Headquarters and First Square building, ending decades of debate over the property’s fate.

Despite resident opposition to demolishing the 1911 Renaissance Revival-style building, which once served as the Roessler & Hasslacher Chemical Company’s headquarters (and despite proposals to convert it into a community center), the city council voted last Wednesday to approve a payment in-lieu of taxes (PILOT) agreement for the $200 million redevelopment.

Former Perth Amboy Police Station
Image via Google Maps.

Plans submitted to the council show that Kushner Cos. intends to build approximately 850,000 square feet of residential and commercial space, and over 900 parking spaces along the city’s waterfront at multiple locations, including 304 and 390 Front Street, 393-395 and 385 Rector Street, 47 and 34 Broad Street, 38 Commerce Street, 56 Fayette Street, and 402-406, 362 and 366-376 High Street.

The project will consist of five nine-story buildings constructed in three phases. The first phase will deliver 317 rental units and 5,000 square feet of commercial space. The developer will then deliver 77 apartments in the second phase and 208 apartments in the final phase.

This redevelopment is Kushner’s third residential project in the city, following the Bayview and Admiral developments at 368 and 358 Rector Street, respectively. The developer has already invested more than $600 million in the city across these projects, which are part of the Landings at Harborside complex. The 35-year PILOT agreement also requires Kushner to invest additional resources in creating and improving a public open space, including a waterfront esplanade, a dog park, and a playground.

The council’s approval comes five months after officials tabled a similar ordinance due to resident concerns about preserving the former police headquarters.

MyCentralJersey.com reported in January that once the project is completed and operational, the city will receive an annual service charge of $1.2 million, totaling $64 million over the term of the PILOT agreement. The project will create 600 temporary construction jobs and include $12.5 million in infrastructure improvements. Kushner will also invest approximately $2 million in environmental remediation.

The news outlet reported in August that residents, including Katherine Massopust, chair of the Perth Amboy Historic Preservation Commission, sought a historic landmark designation for the building, proposing its conversion into a community and welcome center and museum. City officials rejected the idea in September. However, Massopust’s proposal wasn’t the only time residents suggested repurposing the property. A 2009 NJ.com report shows that Perth Amboy historian Jack Dudas opposed the demolition, arguing that the building is part of the city’s heritage.

The former police headquarters, built in 1911, served as the main office for the Roessler & Hasslacher Chemical Company and was once one of the city’s largest factories. The factory reportedly stretched for five blocks along Front and Rector streets, but all other industrial buildings were demolished and replaced with residential structures over the years.

The city purchased the property in 1935 for $9,000 and added a gun range. The police department occupied the building until 2008, when it moved to a new facility on New Brunswick Avenue.

The property generated approximately $190,000 annually in property taxes as of 2023.

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