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Planning board reviews 61 Avenue Road redevelopment, PILOT trade-offs and downtown projects
Summary
Board members discussed the redevelopment path for the 61 Avenue Road site — including variances, county parking, and payment-in-lieu-of-taxes (PILOT) options — and reviewed other downtown redevelopment prospects and timing.
Pompton Lakes Planning Board members spent the bulk of their March 18 meeting reviewing the redevelopment path for the former gas-station property at 61 Avenue Road and discussing payment-in-lieu-of-taxes (PILOT) terms and likely fiscal impacts.
The discussion focused on where authority lies in the redevelopment process, outstanding variances and the county’s commitment to provide eight off-street parking spaces that the applicant is relying on before filing a formal site plan. Board members said the council amended the redevelopment plan by ordinance to make the application “conforming,” which limits the board’s ability to grant variances tied to the redevelopment plan itself; site-plan matters remain with the planning board when the application is submitted.
Board members and staff outlined how PILOT agreements work and why developers seek 20- or 30-year deals. Board members described PILOTs as fixed payment agreements that replace ordinary property taxes for a set period. Discussion included an estimate provided in the meeting that, under the 30-year PILOT scenario presented to the council, the developer would receive about $2.5 million in value over 30 years compared with a significantly smaller amount under a 20-year deal. Participants also noted a current illustrative tax figure of roughly $6,000 per year for the property under ordinary taxation; the transcript discussion did not provide a formal final PILOT amount.
Board members explained the local revenue mechanics: under a PILOT the borough would retain a much larger share of the PILOT payment (participants cited an example where the borough keeps roughly 95% of the PILOT proceeds that it would otherwise share with county and school priorities) compared with roughly 25% of ordinary tax receipts that the borough typically retains. Members emphasized that the school system still receives its statutory share and that consultants (identified in the meeting as having provided fiscal analyses) model whether PILOT revenue offsets any added municipal costs from a development.
The board also discussed related downtown proposals the council and developers are advancing: rehabilitation of the Washington Building on the corner of Wanamaker Avenue and Colfax, a possible second-floor addition at the Kraussers property to create apartments, and other conceptual projects along Colfax and the Main Street corridor. Members cautioned that many projects are at different stages; one or two projects are under construction but most will not come to the planning board until zoning, parking agreements and site plans are complete.
Next steps identified: the applicant for 61 Avenue Road is expected to submit a formal site plan only after the county confirms parking availability. When the application is filed, board members said they will see the site plans and letters from Passaic County, the fire department and other reviewers before voting.
