Council advances amendment for 61 Wanakyu redevelopment plan; tax-abatement pilot tabled after debate

A proposed amendment to the downtown redevelopment plan that would enable redevelopment of 61 Wanakyu Avenue was approved for introduction and referred to the Pompton Lakes Planning Board for review, while a companion ordinance creating a tax-abatement pilot program tied to that project was tabled for further consideration.

The Planning & Redevelopment ordinance (filed as Ordinance 25-11 on the council agenda) was presented with an attachment that includes existing text from the borough code. Planner Kristen Russell and counsel for the applicant explained the amendment is intended to address specifics for the 61 Wanakyu project; the ordinance’s changes are limited to the sections shown in bold in the attachment, they said. Attorney Steve Laleta, representing the redeveloper (61 Q Urban Renewal Entity LLC), told the council the bolded edits apply only to Block 6300, Lot 1 (the 61 Wanakyu parcel) and asked the council to move the ordinance to the planning board as the next step.

Council members debated the ordinance’s presentation format during the public discussion. Several councilmembers and residents said the attachment’s inclusion of large portions of the redevelopment plan — plus block-and-lot references that appear outside the parcel at issue — caused confusion. The redeveloper’s attorney and the borough planner said the full plan text had been copied into the packet for context and that the only substantive changes proposed are the bolded lines addressing the single lot.

After extended discussion, the council approved introduction of Ordinance 25-11 and agreed to send it to the Planning Board for the statutorily required review and report.

The related tax-abatement proposal (Ordinance 25-12 on the agenda), which would set terms of a pilot payment-in-lieu-of-taxes for the same redevelopment project, drew the lengthiest debate of the evening. Several councilmembers said they wanted more time to review the financial analysis and to hear Phoenix Advisors — the financial consultant identified by the borough and the redeveloper — explain term-length options and the projected municipal benefits and tradeoffs for 30-, 20-, and 15-year pilots. Council members repeatedly requested comparative scenarios showing how shorter terms would change revenue to the borough and project feasibility for lenders and developers.

Phoenix Advisors was scheduled to appear at the next council meeting to explain the recommended pilot terms and to answer questions. Councilmembers voted to table Ordinance 25-12 pending that presentation and further review. During the debate the redeveloper’s attorney described the negotiations that produced the proposal on the table and explained why lenders generally expect long time horizons for projects of this scale; he said the applicant had already adjusted its original application and negotiated stepped increases that begin earlier than in its first filing in order to increase municipal receipts over time.

What happens next: the amendment ordinance will go to the Planning Board for its 45‑day review and report back to the governing body; the pilot ordinance will return to the council after Phoenix Advisors’ presentation and after councilmembers have had time to review additional comparative materials.

Quotes (selected) "If you look at the ordinance and you look at the attachment ... the amendments are only those portions that are bolded and underlined, which you will see only addresses Block 6300 Lot 1, which is the 61 Wanakyu lot," said attorney Steve Laleta, representing the redeveloper.

"There is a reason why the 30 years are used most commonly — it's a stabilization and financing reality for lenders and for the project," the developer's attorney said, describing discussions with Phoenix Advisors.

Ending The council’s referral of the ordinance starts the formal planning-board review required by local law. The pilot ordinance will return for council action only after the financial adviser discusses term options and members receive the additional comparative analyses they requested.