Jersey City is planning to use $26.75 million from the sale of municipal land to Jersey City Medical Center as part of its next budget, according to the city’s Finance Department. This move aims to help balance the budget and keep property taxes low.
The Jersey City Redevelopment Agency has selected KRE JCMC Holdings, LLC as the redeveloper for the newly acquired land. The plan involves constructing three mixed-use high rises, with some floor space dedicated to medical purposes. It remains unclear whether there is a financial transaction between the medical center and Kushner Real Estate (KRE).
Ward E Councilman James Solomon has stated that he will vote against this approach.
Revenue from municipal land sales is often considered “one-shot revenue” because it cannot be relied upon annually. Cities using these funds may need to cut expenses or find new sources of income in future years, which could include raising taxes.
Marc Pfeiffer, a retired New Jersey local government administrator and now senior policy fellow at Rutgers School of Planning and Policy, explained that using land sale revenue for balancing budgets “is not uncommon.” He added, “It doesn’t make it a great practice, but it’s often necessary to meet competing demands,” including efforts by officials to keep taxes low.
Pfeiffer also noted that it is preferable for such revenues to cover one-time expenses like capital projects. He emphasized that municipalities should aim for a reasonable balance between spending cuts, tax increases, and one-time revenues in order to avoid significant financial shortfalls in the future.
