Port Authority Board Approves Agreements with Jersey City that Settle Pending Litigation
The Port Authority of New York and New Jersey Board of Commissioners has authorized a set of agreements with Jersey City that will mean resolution of a long-standing legal dispute with the city, and lead to construction of a new power station to generate better PATH service to local riders.
With respect to the litigation settlement, the Port Authority and PATH own 53 parcels in Jersey City. The city had contended in a federal lawsuit that the Port Authority had not satisfied payment-in-lieu-of taxes (PILOT) agreements for all of the properties. The Port Authority had vigorously disputed the claims.
Following the board vote, the case brought by the city will be dismissed and, for a period of 25 years, the city will not contest the tax-exempt status of any property owned by the Port Authority in Jersey City. The agency will enter into a PILOT agreement with the city covering certain other properties.
In addition, the Port Authority is turning the Washington Street Powerhouse over to Jersey City for possible future redevelopment by the city. The Powerhouse — completed in 1908 — and a sub-station build adjacent to it in 1929 has been the primary source of power for the PATH, but has outlived its usefulness. The agency will take title to a half-acre of property that is also located on Washington Street, where a more modern power station will be developed.
The Port Authority has agreed to pay Jersey City nearly $17.8 million as part of the process of acquisition of the new sub-station site, and to conduct a study as to the feasibility of building a new PATH station in the Marion section of Jersey City.
“This is an important step forward for our agency that will mean better service to PATH customers for generations to come,” Board Chairman Kevin O’Toole said. “These agreements represent a new chapter in our relationship with Jersey City, bringing greater stability and certainty between the Port Authority and one its most valued local partners.”
“We’re looking forward not only to upgrading our facilities in Jersey City for the benefit of our tens of thousands of PATH customers, but to help facilitate redevelopment of an important historical site,” said Board Vice Chairman Jeffrey Lynford.
