Jersey City taxpayers are put at risk by tenants demands

Real Estate Weekly, Jan 10, 2001

Rejecting the decision of the City Council after a six-month-long debate regarding a one-time-only rent increase at Metropolis Towers, a recently renovated 770-unit cooperative on Marin Boulevard and Montgomery Street, 57 rental tenants are demanding a referendum that could cost Jersey City taxpayers as much as $200,000 -- and cause financial harm to 420 apartment owners in the building -- in order to avoid any rent increases on their apartments.

The protesters, all of whom have lived in the building for six to ten years and have not seen a rent increase since 1994, have orchestrated a petition and brought in approximately 2,500 signatures. However, city auditors have rejected a substantial portion of the signatures because of invalid addresses and names. In addition, dozens of people are removing their names from the petition because they misunderstood its purpose. Several have reported that it was implied or they were told that the petition was to help save rent control in Jersey City.

Ironically, this is the first time in the history of Metropolis Towers that tenants will be eligible to qualify for rent control. Originally called Gregory Park, the building had been previously controlled by the Department of Urban Housing (HUD), which as a federal agency was not affected by any state laws concerning housing. After the one-time-only increase, the 57 tenants will finally be eligible for rent control in Jersey City.

Since taking over the failing Gregory Park co-op in 1998, Metrovest GPNJ, LLC has re-positioned it as Metropolis Towers, restructured the cooperative corporation from a limited equity to market level and cured over $1 million in violations. In addition, the sponsor and cooperative have implemented an extensive two-year renovation program, now nearing completion, which includes the installation of eight new elevators, 5,000 customized windows, a new chiller, repairs on 300 balconies, newly painted hallways, renovated granite lobbies, the installation of a state-of-the-art security system and two fitness centers, which are scheduled to open shortly.

Out of 770 apartments in the twin tower complex, Metrovest GPNJ, LLC holds the shares to 350.