Perth Amboy condo owners take on Kushners in court
Nation's first son-in-law, Jared Kushner, could be called to testify if lawsuit goes to trial
- Motions are scheduled to be heard Thursday in a suit involving Kushner Companies
- A consumer fraud suit has been filed against the company by Perth Amboy residents
- The suit claims the Perth Amboy development didn't deliver on its promises
UPDATE: Kushner, Landings attorneys battle to prevent testimony
NEW BRUNSWICK - With settlement talks underway, a Middlesex County Superior Court judge asked to speak with residents of the Landings at Harborside condominium complex and their attorney, who have brought a consumer fraud suit against Kushner Companies — the company formerly run by President Donald Trump's senior adviser and son-in-law, Jared Kushner.
And if a settlement is not reached, Kushner and his father, Charles, could be subpeonaed to testify about why the company did not deliver on the $600 million project as promised.
About 32 condo owners at the Landings at Harborside in Perth Amboy have bought a civil suit against Kushner Companies, it's subsidiary, Westminister Company, and others in connection with being misled into "purchasing high priced luxury condominiums based on misrepresentation and false promises made by the defendants," according to the lawsuit.
The residents claim the defendants violated the New Jersey Consumer Fraud Act.
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"Just as the economic downturn affected real estate projects across the country, it affected our initial plans for Perth Amboy. But Kushner Cos. remains fully committed to redeveloping its property in Perth Amboy, and to the town," James Yolles, a Kushner Companies spokesperson, said late Wednesday in an emailed statement. "Our existing plan would create a revitalized waterfront, spur investment and increase the local tax base. We're hopeful the town will work with us to make that plan a reality to the benefit of all Perth Amboy residents."
On Wednesday Middlesex County Superior Court Judge Vincent Leblon asked to meet with the plaintiffs and their attorney, Patrick Whalen, without the defendants' attorneys present. No settlement was reached and motions are expected to continue Thursday.
If the case goes to trial, the residents are looking for Charles and Jared Kushner to be called to testify. Although the Kushners have argued that they have no personal or unique knowledge about the material fact issues in dispute, Whalen, in a letter to the judge, argues that is false.
"Charles Kushner and Jared Kushner both were directly involved in The Landings project, the decision to stop marketing the project, and the cessation of all construction at The Landings," Whalen said in the letter. "Further, Jared Kushner became a key principal of the Kushner defendants precisely at the time, or shortly after, the decisions were made to stop construction at The Landings, and for the Kushner defendants to shift their focus away from New Jersey and direct their business activities to New York."
Starting in 2004, buyers purchased condos in the Landings at Harborside Bayview and Admiral buildings along Rector Street in what was envisioned as a $600 million luxury waterfront community designed to attract well-educated, middle-class residents from outside Perth Amboy.
Former Mayor Joseph Vas touted the project as the renaissance for the urban city. Vas, who brokered the project, is set to be released from federal prison next month after serving time on a corruption conviction.
The residents paid on average between $325,000 to $450,000 for their units, some making the purchases two years before their closings.
According to the lawsuit in 2000, the Perth Amboy Redevelopment Agency adopted a resolution for a redevelopment agreement with Kushner Companies for a 49 acre waterfront site called The Landings. The project called for 190,000 square feet of retail space, 2,094 residential housing units in 17 luxury buildings, include 98 townhomes, 102 row homes and nearly 1,900 low-rise and mid-rise condominiums. The housing units were to be owner-occupied.
The project also called for a hotel, 2,569 parking spaces including underground parking, a 6,000-square-foot state-of-the-art health club, waterfront esplanade, cultural community center, public waterfront walkway, marina with boat slips,Gateway Festival Park and Founders Park, according to the lawsuit.
The plans also called for a jitney service to the Perth Amboy Train Station and high-speed ferry service to New York City. Only high-grade construction materials were slated to be used.
Even small promises were not met, according to the suit. One resident was told she would be able to have a washer and dryer in her unit but later found the area designated for the appliances was too small and the resident has had to do without a washer and dryer since the day she moved in, the suit states.
The lawsuit states that none of the promises for the project, intended to revive the nearby neighborhoods, were honored by the defendants.
The project, with all the amenities, was scheduled for completion by 2012, but to date, only the two buildings, the Admiral and Bayview have been built. There is no waterfront park, no Founder Park, no new marina, no hotel, no shops or other businesses catering to Landings residents. Kushner Companies suspended all construction on the Landings project in 2007.
"Defendants breached their obligations and reneged on their promises to the plaintiff. The extensive failures on the part of the defendants are easily illustrated by the fact the plaintiffs units, the common elements, and the entire planned development do not conform to the promises, representations, sales models, marketing materials, descriptions and/or plans defendants used to induce plaintiffs into entering into their purchase agreements," the suit states.
Kushner Companies presented the city with a scaled-down design of the Landing project in 2011, one that was inconsistent with the original plans, because it included rental housing and no amenities from the original plan, according to the lawsuit.
In addition, residents have made requests to have a number of construction deficiencies addressed, including water leaks, but the defendants have failed to correct most of the problems, the suit states.
The residents are seeking the repeal of their contracts, the return of all money paid to Kushner and the other defendants, and the award of damages including the purchase price of their condo units and any extras, cost of repairs and the difference between the contract price and the value of the property as well as legal fees.
In his letter, Whalen said that Jared Kushner was running the company by 2008 and has direct knowledge as to why the Landings project was not re-started and completed, even though the company was spending billions of dollars on other acquisitions and developments.
"Again, this is a wide-scale Consumer Fraud Act case involving 33 victimized citizen consumers — some of whom have lost their life savings and/or had their retirement plans derailed," Whalen said in his letter. "It is that much to ask for the executives in charge of the corporations that failed to fulfill the promises made, and, who made the pertinent decisions to not build master common elements/amenities, to appear in court and explain to a jury why the Master Common Amenities at The Landings, promised over 13 years ago, were never built?"
Staff Writer Suzanne Russell: 732-565-7335; srussell@mycentraljersey.com