Pearson Hoboken NJ – $100 Million tax break

Pearson nears completion in Hoboken almost 2 years later…

Wow, the construction for the massive Pearson Education office building which started just under two years ago is really taking shape. The exterior is practically done – and the sidewalk is open for pedestrians.

Looks not much different at the street level than the other two buildings to the south. Great.

However, with Hoboken traffic already bursting at the seams at all hours – I wonder how many of the tenants of this new building will be adding to our vehicular congestion problems?

pearson education sidewalk open river street hoboken NJ

pearson education hoboken NJ

Breaking Ground: Pearson Hoboken NJ on the waterfront

12/9/2012 Update:

The “hole” in the Hoboken waterfront is being filled finally, next to the W Hotel. They “break ground” tomorrow at 11:45am.

Pearson Education is the main tenant, with additional retail space coming, that they predict will generate “significant” economic growth.

About Waterfront Corporate Center III:

Waterfront Corporate Center III is the final site within Hoboken’s 26-acre waterfront, mixed-use master plan, and the last phase of SJP Properties’ 1.5-million-square-foot, three-building office and retail complex. The 500,000-square-foot, state-of-the-art building is being developed by SJP Properties in partnership with USAA Real Estate Company and is designed as New Jersey’s only waterfront, LEED Silver Certified office building. The facility will be home to Pearson, the world’s leading learning company, which earlier this year signed a lease for more than 200,000 square feet at the property.

“Tax incentives” allow Pearson to relocate to NYC & Hoboken

9/18/2011:

The big Real Estate “news” this month is that all sorts of tax breaks were given to Pearson to move some 1,300 jobs from one part of the tri-state area to another.

Bloomberg said that 600 jobs are moving to Manhattan, and another 700 to Hoboken to a building that hasn’t even been built yet (thought to be the empty parcel owned by SJP Properties between the J.Wiley building and the W Hotel, but no official confirmation on that as of yet.)

Some questions are:

  • Why move? With the economy already on the fritz, why would both New York and New Jersey relinquish about $100 million dollars in tax revenue?
  • Shifting money from one place to another? Ignoring the “numbers” tossed around in the various news articles – it seems that it boils down to money just being distributed around. So while state coffers get less money, who’s picking up the slack? Who benefits? Construction companies? The new cities? Who loses?
  • While it sounds good for Hoboken businesses – will this new company help lower property taxes for residents? What effect will it have on traffic, parking, roads, etc?
  • Some have said that these individual tax incentives are a bit unfair, and tax breaks should be given to all businesses, so that the market can decide whether re-location is necessary.

8 Responses

  1. ScottyBeamed says:

    Why would you ignore the numbers? This sounds like a win-win. :roll:

    • hoboken411 says:

      “Read my lips – no new taxes” – Bush

      “Stimulus will create jobs” – Obama

      “Detailed plan to cut property taxes 25% in the first year alone” – Zimmer

      THIS is why you ignore the numbers, promises.[quote comment=”210825″]Why would you ignore the numbers? This sounds like a win-win.
      [/quote]

  2. Snip119 says:

    Are they moving in with 700 jobs already filled, or will they be hiring local people?

  3. YipYap says:

    This property is tax abated land is it not? I don’t think another tax abated high rise will help the Hoboken taxpayers much. Who pays for the garbage collection there now for example? I am not against jobs just the giveaways to keep these jobs and build on that land. I believe the W hotel condo units pay around 3k for a million dollar unit. Oh well the party continues I guess.

    • briank says:

      If you are looking for fairness in property taxes in Hoboken, keep looking. The most expensive square foot real estate in town on a lot that developers would be tripping over each other to develop got an abatement. Our city tax collector is a crook. Oh yes, the W was developed by probably the largest landowner in town – Applied. New condos pay three times the taxes as row homes that are worth the same amount.
      Fair? You have to be kidding me. [quote comment=”210831″]This property is tax abated land is it not? I don’t think another tax abated high rise will help the Hoboken taxpayers much. Who pays for the garbage collection there now for example? I am not against jobs just the giveaways to keep these jobs and build on that land. I believe the W hotel condo units pay around 3k for a million dollar unit. Oh well the party continues I guess.[/quote]

      • wiskeytango1 says:

        briank..think for a moment what encoraged you to locate here? People pay twice the tax in NYC and in Hoboken it’s a bit less..This is what it is and BTW what ever happened to that home owners tax decrease prior to the previous election.? The parting of the west side floods as well as equal justice for all voters ? Christmas is coming as well..Hang in there.[quote comment=”210848″]If you are looking for fairness in property taxes in Hoboken, keep looking. The most expensive square foot real estate in town on a lot that developers would be tripping over each other to develop got an abatement. Our city tax collector is a crook. Oh yes, the W was developed by probably the largest landowner in town – Applied. New condos pay three times the taxes as row homes that are worth the same amount.Fair? You have to be kidding me.[/quote]

  4. Bobsmithwesson says:

    Thank you for this article 411. I do not see other publications asking logical questions about the bigger picture or trying to connect the dots.

    The incentive, motivation and benefits need sunlight. Moving a large corporation is a tremendous and costly task. Who pitched the concept? Was it the government or a player at Pearson? How did this come about?

    In the end, I think this promise of economic benefit to the state of NJ is a bit far-fetched. Who in the public has had time to analyze the figures and facts?

  5. hobokenj says:

    I just don’t understand this or any tax abatement in Hoboken. Land with the greatest skyline view in the country needs incentives to build. If the developer cannot make a profit because the land is to expensive to build on then the market needs a correction not government to subsidize the developer and land owners. Especially local government that is so poorly run and in such a big hole as it is. Should be the opposite in my opinion, we the tax payers should be getting paid a 100 million to let them build on one of the last waterfront pieces of land left.

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