The Murphy administration officially pulled $24 million in state financial support for the Centre Pompidou x Jersey City project.

Officials notified both The Centre Pompidou in Paris and the Jersey City Redevelopment Agency (JCRA) in a pair of June 29 letters. The change follows through on actions first threatened earlier in the spring.

In late April, the state gave Jersey City one month to clean up its books and present a potential path forward.

As NJBIZ reported, that set off a heated back-and-forth between the Murphy administration and Jersey City Mayor Steve Fulop.

The latter, also a 2025 Democratic gubernatorial candidate, accused Gov. Phil Murphy of political payback for his endorsing U.S. Rep. Andy Kim, D-3rd District, in the recent Senate primary election over First Lady Tammy Murphy.

In early May, Jersey City officials responded to the state in a letter to the New Jersey Economic Development Authority (NJEDA). The correspondence sought to allay concerns and move the project forward. However, the Legislature de-appropriated the previously earmarked $24 million for the Pompidou Jersey City project during last week’s final stretch of the state budget process.

“Therefore, the Department of State has cancelled the remaining $18 million encumbrance of the appropriation from Fiscal Year 2022 for this project, which has been returned to the State General Fund,” Michael Greco, deputy executive director, NJ Department of State, wrote to JCRA Executive Director Diana Jeffrey June 29. “We have reviewed the ‘Possible Pompidou Five Year Operating Budget’ submitted by JCRA to the Economic Development Authority, which anticipates over $2 million in annual state fiscal support for the project. However, based on the Legislature’s actions, there is no longer any state support available for this project.”

Return to sender

The Department of State also noted $6 million already disbursed to the JCRA.

“Because the project is no longer viable and none of the disbursed funds have been expanded, we ask that you return the funds to the state before Aug. 1, 2024,” Greco wrote.

“It is really unfortunate. As we said earlier this year, absolutely nothing changed in this project from what the governor and First Lady knew initially and what they reference now, and there is plenty of documentation to support our point,” Kim Wallace-Scalcione, press secretary for the City of Jersey City and Fulop. “The only thing that changed is the politics in New Jersey and the First Lady’s failed candidacy.

“Furthermore, his most recent comments on financial concerns are obviously not sincere as the governor signed off on more than $500 million in legislative Christmas tree items in the last day of the budget – so clearly, financial responsibility of a budget is not a real concern,” Wallace-Scalcione continued.

A path forward?

In the other June 29 letter, NJEDA Chief Executive Officer Tim Sullivan wrote to Laurent Le Bon, president of The Centre Pompidou. He notified him directly about the decision.

“While we are honored that Jersey City was selected as the first North American location for a Centre Pompidou facility, we have decided to pause the project indefinitely,” Sullivan wrote. “Due to the ongoing impact of COVID and multiple global conflicts on the supply chain, rising costs, an irreconcilable operating gap, and the corresponding financial burdens it will create for New Jersey’s taxpayers – the Legislature has rescinded financial support, leaving us to determine that this project is unfortunately no longer feasible.”

Despite the disappointing outcome, Sullivan expressed his gratitude and appreciation to the Centre Pompidou team.

“Over the past three years, the members of your staff have been collaborative, courteous, and highly professional,” said Sullivan. “And while the door on this particular project has now been closed, we are eager to explore possibilities of opening new doors, with our partners in France, in the years to come.”

“Over the next week, we need to discuss with our partners abroad and see if there is a path forward,” said Wallace-Scalcione.

“The Centre Pompidou acknowledges the State of New Jersey’s decision,” a Centre Pompidou spokesperson told NJBIZ. “It remains committed to ongoing discussions with the Mayor of Jersey City to jointly determine the project’s future direction.”

Editor’s note: This story was updated at 1:36 p.m. ET July 1, 2024, to include a statement from the Centre Pompidou.