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?
Breaking Ground: Pearson Hoboken NJ on the waterfront
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
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.