[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6041226,"mediaKeyId","3734814-0e7ba4029d909e32351f2c497f6e1f56","parentId",3734814,"title","Council introduces M. Lofts Spring Street financial agreement; project includes 150 units, 20% affordable and property gifts","audioSeconds",1267,"startMs",3823000,"endMs",5090000,"viewUrl","/Search/View?dp=1&key=3734814-0e7ba4029d909e32351f2c497f6e1f56&start=3823&end=5090","thumbnailUrl","https://assets.pipeline.soar.com/3734814-0e7ba4029d909e32351f2c497f6e1f56/thumbnail_3823000.jpg","articleUrl","/articles/6041226/Morristown/Morris-County/New-Jersey/Council-introduces-M-Lofts-Spring-Street-financial-agreement-project-includes-150-units-20-affordable-and-property-gifts","mediaUrl","https://secure.pipeline.soar.com/6041226-6445189daa812ee2d9f450a8907d26e0/orig.mp4?Expires=1771145009&Signature=ZTKw3Pkde1FcLSYGM8IZNf7Jb0o1X3Js98dyWBculZOUo-ReMAGLnoEJvlDfEuOhSa1Oaxsnzcyzp78FzpQvDYzIFKJmbI4FmLc-iH3jVDjRdqfL25Wt4bKYbW8UI1CIMrtZ8IWcVHIJaSZiK8BtK0eohH0RZQpPALktoD9La3mLbo9PXmpD~89jPjlaKXXbQZkk0bkS4PGueAsfcJHNRDAO3jJApC9qeOFAnCWHpJPBzmOcl3plGepch4f5RXxYSYq3HPJ~rS7tXgx~NYKPo7S3bkntgv7POtU85byo6LKYx-9FTsRUKTuej2xjG9EGrw7c-F85t10JljBCEJQfKg__&Key-Pair-Id=KUT5TJCACFTXG","author","Morristown, NJ","date","2025-05-14T00:00:00Z","article","Morristown — The Town Council on May 13 introduced ordinance O-21-2025, authorizing a long‑term tax exemption and financial agreement for the M. Lofts Spring Street redevelopment, a proposed six‑story project with 150 residential units, two levels of structured parking and a 20% affordable component.

Daniel Banker of NW Financial Group presented the firm’s review of the developer’s pro forma and told the council the project’s estimated total cost is about $78.36 million. Banker said the firm adjusted some of the developer’s cost assumptions (including land‑value inputs) and concluded the project is unlikely to be financeable under full conventional property taxes. NW recommended a negotiated PILOT to achieve lender‑acceptable underwriting metrics.

Under terms reported to the council, the PILOT would be a 20‑year financial agreement with payments calculated as a percentage of annual gross revenues: roughly 12% for the first five years, 13% for the next five and 15% for the final 10, plus a 2% administrative fee. Banker said the administration’s modeled stabilized year 2 PILOT payment is about $750,000; after statutory distributions the town’s share in that year was estimated at approximately $575,000.

Banker also summarized non‑revenue components the redevelopment agreement would require the developer to deliver: construction of a publicly accessible pocket park on town‑owned land (Block 3504, Lot 1); conveyance of specified lots (Lots 3, 4 and 5 on Block 4901) for public or open‑space use; and transfer of an existing eight‑unit building (12 Spring Street) to Habitat for Humanity for conversion to permanently affordable for‑sale housing.

The adviser said the current taxes on the multiple parcels total roughly $72,000 annually, of which the town’s share is about $26,000. Banker presented a 20‑year projection showing the town would receive approximately $18 million in municipal revenue under the proposed PILOT versus roughly $640,000 if the site remained as‑is at current tax levels (his timeline assumed conventional tax growth). He said the PILOT structure would also help the project meet standard debt‑service coverage ratios required by lenders.

Council members framed the project as both a redevelopment and an affordable‑housing contribution. Council President Umbriac told the council the administration had negotiated additional community benefits and proposed directing recurring support to the Morris Educational Foundation: “We are now going to offer $75,000 per year for 20 years to the MEF,” he said during the discussion, describing the foundation as the nonprofit partner to the public schools. Debbie Santoop, who identified herself as the Morris Educational Foundation chair, told the council such a gift would be “transformational” for programming that serves the district’s 5,200–5,700 students.

Action and next steps: Mayor Tim D. P. Doherty moved to introduce ordinance O-21-2025; the council voted to introduce the ordinance by title. The ordinance was scheduled for a public hearing and final vote on May 27.

Why it matters: The project would replace a stretch of Spring Street described by council members as blighted, add 30 affordable units and provide public open‑space improvements and an affordable for‑sale conversion through Habitat for Humanity; the PILOT is intended to be the financial mechanism that makes the project lenderable.

Caveats: Advisers said the developer’s projected rents are optimistic relative to nearby market availabilities and that actual revenues will determine PILOT payments (because the PILOT is a percentage of AGR). Council members said the town negotiated shorter and more town‑friendly PILOT terms than many long‑term exemptions and emphasized that details of the redevelopment agreement, land conveyances and PILOT credits will be finalized before final adoption.

","mediaType","Video","parentTitle","May 13, 2025 Town Council Meeting","oneSentenceSummary","Morristown — The Town Council on May 13 introduced ordinance O-21-2025, authorizing a long‑term tax exemption and financial agreement for the M. Lofts Spring Street redevelopment, a proposed six‑story project with 150 residential units and 20% affordable housing.","taxTitle","Morristown, Morris County, New Jersey","taxId",63616,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6041231,"Morristown council introduces 12-year tax-exemption plan for Lackawanna Place redevelopment",2606,2104000,4710000,"/Search/View?dp=1&key=3734814-0e7ba4029d909e32351f2c497f6e1f56&start=2104&end=4710","https://assets.pipeline.soar.com/3734814-0e7ba4029d909e32351f2c497f6e1f56/thumbnail_2104000.jpg","/articles/6041231/Morristown/Morris-County/New-Jersey/Morristown-council-introduces-12-year-tax-exemption-plan-for-Lackawanna-Place-redevelopment","https://secure.pipeline.soar.com/6041231-62ebf678dfe4e92322d9180d4d8b5656/orig.mp4?Expires=1771145009&Signature=PzZPZ3o0wd31NufcGd3aZNEMSeX8ziFwy27YzukzXg~w4BEZ1~iTjgWZQ0FjmqjDGhAHc2JXxwjgw1WU0gatohSSvHI9eTZONLflXOnGjBC5yqEqRy-0ok4CTO8tEJCpcMe5mN6-neCQAUVxDAcMZse7BXRanc9zmzZqSxUOV3UiOcaSMwh3Vf867aMQontFQoo405Zkg7hjimaB3Tykjvv7OPcHG7ZxuArPgC1QQHY3Rs~Sd03SMfS-~P1pm5fWMM4tGeC5L4xLgj3KpYAH~v97vqs8fW5kFXuWnvrsB75gC9iV~bT2OhnTZP-niZ-cXDAzb~PKetK106QV70KqXw__&Key-Pair-Id=KUT5TJCACFTXG","Morristown — The Town Council on May 13 voted to introduce an ordinance (O-20-2025) that would authorize a 12-year long‑term tax exemption and financial agreement with Lackawanna Place Morristown Urban Renewal LLC to build an 89-unit, transit‑oriented rental project behind the train station.

The measure was introduced by the mayor and approved unanimously by council members present. Town financial advisers and redevelopment counsel told the council the short, 12‑year agreement is intended to make the project financeable while returning substantial revenue to the town during the exemption period.

In a presentation to the council, Bob Powell of Nassau Capital Advisors said the project would include 89 rental apartments (about 76 market‑rate studios, one‑ and two‑bedrooms and 13 income‑restricted units at roughly 50% of Morris County area median income). He described the proposed financial agreement as a payments‑in‑lieu‑of‑taxes (PILOT) contract under the state long‑term tax‑exemption statute and summarized its negotiated terms: 13% of annual gross revenues (AGR) in years 1–5, 13.5% in years 6–10 and 14% in years 11–12, at which point the property would revert to the tax rolls.

“A pilot agreement is a form of financial assistance that municipalities are allowed to provide to developers under a state statute,” Powell said, explaining that annual gross revenues include all tenant income (rents, fees and other project revenue) and that the payments are secured by a lien on the property similar to a tax lien.

Powell told the council the project’s estimated total cost is about $45 million, with roughly $18 million of developer equity. Under Powell’s model, in a stabilized year (year 2 in his analysis) the project would generate total PILOT payments near $577,000, of which the town’s net share after statutory distributions and fees would be roughly $477,000. Powell said the negotiated PILOT would reduce the town’s tax take relative to full conventional taxes by roughly 15% in the early years but also provides predictability that lenders prefer.

Redevelopment counsel Johnny Glissino described the project as “transformative,” noting the PILOT was necessary to attract private investment. “But for the pilot agreement that is before you tonight, this project would never get built,” Glissino said during council remarks.

Council discussion emphasized the project’s transit orientation and affordable‑housing contribution. Council President Umbriac said the administration negotiated a shorter, more town‑favorable term than many PILOTs and announced the administration’s plan to direct part of the municipal benefit to a local nonprofit: “We are going to do a financial agreement . . . with the Morris Educational Foundation for 12 years at $25,000 per year,” Umbriac said, describing the MEF as a nonprofit partner to the public schools. Council members said the payment is intended to support school programs and not to replace conventional school funding.

Action and next steps: Mayor Tim D. P. Doherty moved to introduce ordinance O-20-2025. The council voted to introduce the ordinance by title; the ordinance will return for a public hearing and final vote at the May 27 council meeting.

Why it matters: Town officials said the negotiated PILOT aims to make the project financially viable while preserving a higher share of conventional taxes than typical, accelerating redevelopment of a long‑vacant surface lot adjacent to transit and adding income‑restricted units that count toward the town’s affordable‑housing obligations.

Context and caveats: Powell and other advisers cautioned that projected returns are at the low end of market expectations and that the project’s economics depend on lease‑up, assumed rents and construction costs. Powell said the modeling used conservative 3% rent growth assumptions. The council did not adopt the ordinance on May 13; it was introduced and scheduled for public hearing on May 27.

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Council introduces M. Lofts Spring Street financial agreement; project includes 150 units, 20% affordable and property gifts

Morristown council introduces 12-year tax-exemption plan for Lackawanna Place redevelopment