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Town of Secaucus v. City of Jersey City

Town of Secaucus v. City of Jersey City

Tax Court of New Jersey

December 5, 2002, Decided

DOCKET NOS. 002467-98, 001346-99

Opinion

 [*391]  KUSKIN, J.T.C.

Plaintiff, Town of Secaucus, challenges property tax exemptions for tax years 1998 and 1999 granted under the Fox-Lance Law, N.J.S.A. 40:55C-40 to -76, by the City of Jersey City to defendant 101 Hudson Street Associates (properly named 101 Hudson Urban Renewal Associates and hereinafter referred to as "Hudson Urban Renewal") with respect to a forty story office building and related improvements located at 101 Hudson Street, Jersey City (the "Project"). Plaintiff contends that the Project did not qualify for exemption during the years under appeal for the following reasons:

1. After adoption by Jersey City's governing body of an ordinance approving the exemption and the signing of a financial agreement by the City and Hudson Urban Renewal, a transfer of the Project occurred without approval by the City;

2. Hudson Urban Renewal is not the entity "enjoying" the tax exemption as required by the New Jersey Constitution and by statute;

3. The financial agreement between Jersey City and Hudson Urban Renewal provides for payment of an annual service charge that does not comply with statutory requirements;

4. The financial agreement requires payment of amounts, in addition to an annual service charge, not permitted by statute; and

5. Jersey City has failed to comply with the statutory requirement for certification that the financial agreement was in effect for the tax years under appeal.

In addition to denying that the tax exemption is in any respect violative of applicable statutes or the New Jersey Constitution,  [*392]  defendants contend that plaintiff's appeals are barred under the doctrines of laches and estoppel.

Plaintiff and defendant Hudson Urban Renewal have moved for summary judgment. Jersey City joined in defendant's motion. The State of New Jersey intervened as a party-defendant to defend the interpretation and constitutionality of the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 to -20 (the "Long Term Law"), which replaced the Fox-Lance Law in 1992.

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20 N.J. Tax 384 *; 2002 N.J. Tax LEXIS 27 **

TOWN OF SECAUCUS, PLAINTIFF, v. CITY OF JERSEY CITY AND 101 HUDSON STREET ASSOCIATES C/O LINPRO CO., DEFENDANTS.

Subsequent History: Related proceeding at Town of Secaucus v. Jersey City, 20 N.J. Tax 562, 2003 N.J. Tax LEXIS 3 (N.J. Tax Ct., Jan. 17, 2003)

Prior History: Town of Secaucus v. City of Jersey City, 19 N.J. Tax 538, 2000 N.J. Tax LEXIS 25 (N.J. Tax Ct., 2000)

CORE TERMS

urban renewal, entity, exemption, annual, Long Term Law, Fox-Lance Law, tax exemption, service charge, partnership, municipality, provisions, Leasing, appeals, laches, rent, estoppel, ownership, excess profits, total project, calculation, ordinance, five year, partner, gross revenue, partnership agreement, tenant, taxes, net profit, tax year, computation

Governments, Public Improvements, Community Redevelopment, Local Governments, Finance, Tax Law, Personal Property Taxes, Exemptions, General Overview, Business & Corporate Law, Management Duties & Liabilities, Rights of Partners, Limited Liability Companies & Partnerships, Income of Partners & Partnerships, Federal Income Tax Computation, Amortization, Depletion & Depreciation, State & Local Taxes, Income Taxes, Real Property Law, Landlord & Tenant, Lease Agreements, Subleases, Insurance Law, Coverage, Real Property, Real Property Taxes, Assessment & Valuation, Contracts Law, Types of Contracts, Lease Provisions, Administrative Boards, Civil Procedure, Judgments, Enforcement & Execution, Administration & Procedure, Assessments, Employees & Officials, Defenses, Demurrers & Objections, Affirmative Defenses, Laches, Relief From Judgments, Altering & Amending Judgments, Appeals, Appellate Jurisdiction, Interlocutory Orders, Exemptions, Judicial Review, Legislation, Interpretation