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Smithfield approves 15-year partial tax abatements to assist renovations at two apartment complexes
Summary
The council approved a 15-year partial tax abatement that freezes property tax at current assessed values for Jersey Park and Woods Edge while abating taxes on increased assessed value during renovations, to help owners secure financing for planned multimillion-dollar rehabilitation.
SMITHFIELD — The Smithfield Town Council voted on March 4, 2025, to grant partial tax abatements for two multi-family properties to help their incoming owner secure financing for major renovations.
Town staff told council the incoming owner plans substantial renovations at Jersey Park (estimated $8.4 million) and Woods Edge (estimated $6.3 million). Under the council-approved arrangement, the properties would be taxed at their current assessed values — $3.2 million for Jersey Park and $2.3 million for Woods Edge — while taxes on any increase in assessed value attributable to renovations would be abated for 15 years. The abatement is intended to help the owner meet underwriting requirements for HUD and other financing sources by reducing immediate property-tax increases tied to improvements.
Town staff presented the mechanics: during the 15-year abatement the town would continue to receive the same real estate tax revenue it currently collects from each property; taxes on the portion of value created by renovations would be abated so the property owner can allocate more cash flow to the rehabilitation.
Council members discussed the request and asked procedural questions about timing and authority. After discussion, a motion to approve the proposed abatement ordinance passed; Mayor Michael G. Smith recorded an abstention. Council members in favor said the abatement supported rehabilitation and long-term housing stability; those with reservations emphasized careful public oversight of abatements and consistency with town policy.
Why it matters: The abatement is intended to enable substantial, privately financed rehabilitation work on two existing apartment complexes without reducing current municipal property tax receipts in the near term; the arrangement is a financing tool tied to project viability rather than a direct town cash outlay.
What’s next: Town staff will finalize the ordinance language, execute the abatement agreement once financing is in place, and monitor the projects per the agreed terms.
