City council approves long-term tax deal for Atlantic Lofts; debate centers on 30-year payment‑in‑lieu and local abatements

Atlantic City Council on Feb. 19 approved an ordinance authorizing a long‑term tax exemption and financial agreement with Atlantic Lofts Urban Renewal, and approved several related tax abatement measures for properties downtown.

Council members spent the largest portion of debate on the long‑term agreement — repeatedly described in the meeting packet as a 30‑year payment‑in‑lieu (PILOT) arrangement — with several members pressing for clarity about how the city benefits over time and what safeguards apply to future applicants.

The council president read the ordinance into the record: “Ordinance number 6 approves the application for a long term tax exemption and authorizing the execution of a financial agreement with Atlantic Lofts Lofts Urban Renewal.” Councilman Shabazz moved the ordinance and another council member seconded. The administration stated the agreement is a 30‑year arrangement and that developers would pay a financial fee (a payment‑in‑lieu) rather than standard property taxes.

Supporters said the abatement is intended to induce private development on long‑vacant downtown property. Councilwoman Marshall recalled the SWIN building has been vacant for decades and said the planned project would include retail and residential uses, put people on the street and spur related development in the center city. She and others said the developer has prior projects in the area and described the SWIN project as roughly 52 residential units plus retail. Opponents warned that long terms open the door to future requests for similar deals and compared the situation to earlier eras of large abatements given during the casino boom.

Council members and the administration said abatements are considered case‑by‑case, may include termination provisions, and that the city has previously used shorter abatements (five years) for smaller projects. The administration also described the financial mechanics as a payment in lieu of taxes that differs from standard assessments and said the 30‑year term was included in the packet.

Vote and outcome: The council approved the long‑term tax exemption ordinance (Ordinance No. 6) by a recorded vote: eight in favor, one opposed. The record shows Councilman Tibbitt voted no; eight colleagues voted yes. The council also approved related measures on the agenda, including an ordinance approving a five‑year exemption/abatement for 800 Pacific Avenue; that measure passed with an affirmative vote and one negative vote recorded.

Why this matters: Long‑term PILOT agreements can change how a property contributes to municipal revenues for decades and are often used to attract development that the city says would not otherwise occur. Council debate focused on balancing immediate development goals for blighted properties against the long‑term fiscal tradeoffs of multi‑decade tax deals.

What council directed next: Council members asked the administration for details on how future requests would be evaluated and emphasized that abatements should be handled on a case‑by‑case basis with termination and oversight provisions. No additional formal direction (for example, a study or new policy) was adopted during the meeting; the ordinance itself, as approved, authorizes the 30‑year financial agreement with Atlantic Lofts Urban Renewal.

Votes at a glance (related items mentioned during the same discussion): Ordinance No. 5 (five‑year tax exemption for property at 800 Pacific Avenue) was approved (eight in favor, one opposed); Ordinance No. 6 (the Atlantic Lofts long‑term agreement) was approved (eight in favor, one opposed).

Ending: Council members said they will monitor implementation and return with any needed clarifications; several members asked staff to ensure future agreements include appropriate safeguards and termination mechanics.