Developer Joseph Panepinto ’66 recalls a time in the not-too-distant past when Starbucks, the upscale coffee retailer, refused to consider locating a franchise in Jersey City. Today, a Starbucks on 14th Street near the Hudson River waterfront is far from the only thing that’s hip and trendy in Jersey City.
Once an aging metropolis ravaged by rising crime and a shrinking industrial base, the city is now the state’s hottest urban market.
The redevelopment effort, initially confined to the area fronting the Hudson River, has swept across the river like a great wave of promise resulting in thriving business centers and residential enclaves for both upscale and working class families.
“The whole city has been exploding in a good sense for the last five years or so,” said Mayor Jerramiah T. Healy. “Ten years ago we had vacant lots and abandoned buildings. Right now there are five or six bidders lined up for each vacant lot and building. A decade ago you couldn’t give some of these things away.”
Gateway to Opportunity
The outlook was very different for Jersey City back in the mid-1970s, when Panepinto first wet his feet as a developer.
Joe Panepinto eyed Journal Square as a site with real potential for development and sunk $10,000 into a project to purchase and renovate 634 Summit Ave., which is now occupied by the New Jersey Superior Court.
As plans progressed along the waterfront, other projects in the area by Panepinto soon followed, including the construction of One Journal Square Plaza, the corporate headquarters for Maher Terminals.
“I just felt that there was a real opportunity to develop Journal Square,” said Panepinto, who is now President and Chief Executive Officer of Jersey City-based Panepinto Properties.
Jersey City’s business and residential markets have weathered several downturns through the past two decades of development. Experts say the city’s location and ample transportation into the city has played a key role in helping markets to rebound stronger than ever.
“Our key is our location,” Healy said. “We’re a gateway to the commercial, financial center of the world, New York City. With four ferry sites and multiple PATH train stations, you can access New York in minutes.”
Infrastructure improvements played a vital role in fueling Jersey City’s renaissance. The Hudson- Bergen Light Rail began operating in 2000 and now provides ready transportation from Bayonne to North Bergen. The system currently serves 34,000 riders a day and New Jersey Transit increased service frequency and doubled passenger capacity to keep up with demand.
As a congressman and now as a U.S. Senator, Robert Menendez ’76 played a critical role in securing state and federal funding for the $2.2 billion project.
“We were able to create an economic engine that continues to fuel new businesses and create new jobs,” said Menendez. “The Hudson- Bergen Light Rail has become a vital part of the region’s transportation network and a model of how we can thoughtfully link communities and provide transportation options while achieving our shared goals of reducing pollution, easing traffic and encouraging smart growth.”
As other urban centers continue to experience population declines, Jersey City saw its population spike by more than five percent between 1990 and 2000.
In fact, residential development in Jersey City is steaming full speed ahead with 8,000 units under construction and up to 85,000 more predicted to be built within the next 25 years, according to New Jersey Business magazine.
Panepinto’s State Square project transformed the Journal Square area that once housed the State Theater into a 12-story, 130-unit rental residence boasting 13,000 square feet of commercial and retail space and a 400-car parking garage. Completed in 2005, the project is the area’s first major residential project in 30 years.
On the waterfront, Panepinto is partnering with Donald Trump and several other firms to construct Trump Plaza, which will become the state’s two tallest luxury residential towers.
“When I came up with the idea of the tallest residential complex in New Jersey eight or nine years ago, people said I was crazy,” said Panepinto, who recently inspired other Saint Peter’s alumni to donate some $300,000 to the College through an extremely generous challenge gift of his own. “Now Trump loves the idea”.
For the full story go to: http://www.spc.edu/pages/1283.asp.
