Articles on the company website boast of a buying frenzy at the Crystal Point luxury waterfront condo building on Second Street. But if sales are so good, why is the developer looking for a tax abatement and lowering prices to $400,000?

Residents asked these and more questions, pleading with the City Council to vote down a tax abatement for Second Street Waterfront Urban Renewal LLC, noting that they should wait until the market improves and that the deal would unfairly shift tax burdens.

“It’s the reason people leave the city. They look at the schools,” said real estate agent Phillip Rivo.

But Ordinance 09-078 passed 6-3 at the June 17 meeting.

Council members defended their votes.

“Tax abatement is a tool to build our cities and make our residents proud,” said Councilman William Gaughan.

Payments from the developer will be 1.5 million for five years, with other stipulations beyond the five year period

Councilman Steven Lipski said that 50 percent of units were sold after price reductions.

Those who voted ‘yes’ highlighted the need for action in dire economic times. “The buildings are 60-70 percent complete. Do we just walk away?” asked Councilman Brennan.

“For the last 30 years, growth has come through abatements. If the market adjusts, we get more money,” said Councilman Michael Sottolano.

Council members Steven Fulop, John Kenny and Viola Richardson voted no.

James McCann, whose client is developing the site, said it will take 5-8 years to sell the units and compete with all the other projects. “If any developer sells a unit for $200 per square foot, immediate value of all properties nearby go down. The worst thing Jersey City can have is an inventory of unsold condo units.”