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Millville approves long‑term tax‑exemption pilot with CRP after heated public hearing

Millville City Commission · December 18, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

After extended public comment and questions about length and math in the agreement, the Millville City Commission voted to approve a long‑term tax‑exemption (pilot) and related financial agreement with CRP Development Urban Renewal LLC; commissioners also approved several ordinances and a demolition order.

The Millville City Commission voted to adopt an ordinance authorizing a long‑term tax‑exemption (pilot) and financial agreement with CRP Development Urban Renewal LLC for property identified as Block 163, Lot 1, after a lengthy public hearing marked by technical questions about projected revenues, assessor values and the agreement’s effective term.

Supporters, including municipal advisers from Phoenix Advisors, said the project will re‑activate a long‑undeveloped city parcel and generate new revenue. "The project consists of three phases and is expected to bring over 3,600,000 square feet of warehouse space to the site," Phoenix Advisors’ Brian Morris said during the presentation, and he described a three‑pronged annual service‑charge calculation the city will use to set payments.

Opponents and several residents pressed the commission on specifics. Paul Pereca said figures in the contract and in staff materials did not match and asked how the city reached large multi‑decade revenue projections: "The contract says it's about a hundred and thirty million over 30 years," he said, noting he could not find supporting assumptions. Presenters and staff responded that the developer’s application, a three‑prong test (percent of annual gross revenue; dollars per square foot; and percent of conventional taxes) and statutory deductions (administrative fee, county share, credit for land taxes) together produce the net $190 million figure staff cited.

Officials clarified the timing and legal mechanics that govern the pilot. Each completed phase receives its own 30‑year payment schedule; if phases are built years apart, the overall agreement can run longer than 30 years (the commission and residents discussed scenarios that could extend effective payments up to 50 years). Staff also described a $400,000 upfront payment from the developer to fund a bond for a road extension (referred to in the record as Knab/Nab/Nava Avenue), which they said is critical to enabling later phases.

Public commenters raised concerns about community character, wages and local impacts. "I don't think the future of employment is in that industry that is quickly becoming automated," said Patricia Keers, a resident. Greg Keers warned the scale of warehouses would change noise and traffic patterns and the town’s character. Barry Campbell said the city should examine representation and inclusion in appointments and decision‑making.

Commissioners debated tradeoffs between redevelopment and long‑term commitments. Commissioner Sewey, who said he had worked on the project for about two‑and‑a‑half years, argued the pilot is necessary to bring ratables and jobs: "We were elected to move this city forward," he told the meeting. After discussion the commission held a roll‑call vote and the ordinance authorizing the long‑term tax exemption carried.

Votes at a glance: - Ordinance approving long‑term tax exemption and financial agreement with CRP Development Urban Renewal LLC (Block 163, Lot 1): approved by roll call (motion carries). - Ordinance appropriating unexpected proceeds and bond ordinance for capital improvements ($2,175,000): approved. - Purchase/lease agreement for Cordelli brothers facility at 202 South Wade Boulevard: approved after public comment; one commissioner opposed. - Consent agenda (multiple routine items including a DOJ grant insertion and tax certificate cancellations): approved. - Resolution added at meeting (Item 8) authorizing demolition of Block 3, Lot 5.05 after 15 days due to an uninhabitable imminent danger: approved by roll call.

What happens next: The purchaser is due to pay the agreed purchase price at closing; phase‑by‑phase construction schedules will govern when pilot payments begin for each phase. Staff and the developer will continue coordination on the road extension and any bond or escrow arrangements referenced in the financial agreement.

Direct quotes in this story come from the meeting transcript and are attributed to the speakers who spoke on the record. The city’s financial exhibits and the redevelopment and financial agreements cited at the hearing contain additional details and exact formulas for the pilot calculations.