Tax Incentive For Developer? Morristown Council To Decide Monday

Morristown NJ

26 July, 2021

9:14 AM

Description

MORRISTOWN, NJ — Town Council will hold a special meeting at 7:30 p.m. Monday, focusing on whether to grant a PILOT deal to an apartment developer. The link to access the meeting will become available on the town's website. The town has already approved the project for the developers — Morris Street 2015 Urban Renewal, LLC. But the builders are pursuing a PILOT — payment in lieu of taxes — a percentage of annual gross revenue to be paid to Morristown that is typically lower than taxes. Morristown has used the arrangement in the past to reach its redevelopment goals. In September, Morristown gave M Station a 30-year PILOT. The major project, which will become an office and retail space, is expected to generate $1 million for the town annually — 4.5 times its current revenue. The project will also contribute $2.5 million to Morristown's affordable housing trust fund. The entirely of the terms with the Morris Street development won't become public until the July 26 hearing, says Town Administrator Jillian C. Barrick. But the developer would provide 14 special needs-restricted housing units — a mix of one- and two-bedroom — that also qualify as affordable, Council President Stefan Armington revealed. They will also provide four three-bedroom affordable apartments. "Morristown has no special needs housing, so this aspect will provide significant additional benefit to the town," Armington said. >>>Want to win Six Flags Great Adventure Season Passes? Here's how. At July 13's council meeting, former Zoning Board Chair Cary Lloyd raised concerns about the possibility of the PILOT eliminating the payment of school taxes. Lloyd encouraged the council to vote against the deal. "The PILOT would eliminate property tax payments to the school district for 25 years, while adding apartments that Morris School District students can live in," Lloyd said. Lloyd said he could understand the M Station decision, because it provided office space. But the apartment complex has the potential to add more students to Morris schools. The building — a "live-work" development — features 85 apartments and a retail area, including a co-working space, according to a 2019 presentation. Thanks for reading. Learn more about posting announcements or events to your local Patch site. Have a news tip? Email [email protected]. Subscribe to your local Patch newsletter and follow the Morristown Patch Facebook page.