Montclair has had a couple of properties developed through the PILOT program (payment in lieu of taxes). Do we have a clear understanding of the “real” benefits of this program?
Through OPRA (Open Public Records Act), I filled out a Government Records Request Form and I was able to get the financial arrangement between the town and the hotel in progress at 638 Bloomfield Avenue. As per this arrangement:
• The current real estate taxes generated by the previously vacant property are $11,257.20 [Page 2(D)] whereas the project is estimated to generate revenues for the Township ranging from $211,000 to $337,000 annually during the first 10 years [Page 2(E)]. This sounds good.
• However, the hotel has a fall back clause regarding the aforementioned incremental revenue [Page 5XIX]: If the hotel does not produce the estimated taxes of $211,000-$337,000, their lowest payable amount will be $11,250.27. I pay more than that on my 3-fam...
View more
Montclair has had a couple of properties developed through the PILOT program (payment in lieu of taxes). Do we have a clear understanding of the “real” benefits of this program?
Through OPRA (Open Public Records Act), I filled out a Government Records Request Form and I was able to get the financial arrangement between the town and the hotel in progress at 638 Bloomfield Avenue. As per this arrangement:
• The current real estate taxes generated by the previously vacant property are $11,257.20 [Page 2(D)] whereas the project is estimated to generate revenues for the Township ranging from $211,000 to $337,000 annually during the first 10 years [Page 2(E)]. This sounds good.
• However, the hotel has a fall back clause regarding the aforementioned incremental revenue [Page 5XIX]: If the hotel does not produce the estimated taxes of $211,000-$337,000, their lowest payable amount will be $11,250.27. I pay more than that on my 3-family house and I have no "fall back tax" if my apartment is not rented.
• School taxes will be going up and this property is not re-rateable for these expected increases. Plus after 1 year there is a voluntary termination clause where the developer can terminate in writing the tax exempt status. Common sense says this would only happen if it benefits the developer.
What is the cost to Montclair’s infrastructure of all this new development (e.g. sewer, road maintenance, etc.)? Are these costs being factored in when deciding on these PILOT developments?
In sum, Montclair residents deserve a public and transparent cost benefit analysis before any new PILOT development is approved so that we all know how these developments will affect us and our taxes.
The township is turning a once beautiful suburban town, noted for its homes and tranquil setting, into an overdeveloped township of hotels, condos and townhouses. The Lackawanna and Seymour Street projects are the latest developments being offered a PILOT program and I am not sure the estimated benefits outweigh the real costs.
Hide