Linden residents urged caution over a proposed long-term tax exemption (pilot) at the council’s Dec. 16 meeting, telling elected officials the incentive program can shift tax burdens onto homeowners and local schools even as the council moved forward with redevelopment authorizations.

“Another pilot agreement … this is on the corner of Route 1 and 9,” said a resident identified in the hearing as John Linden, who said he opposed repeated pilot deals in commercially viable locations and asked what would be built there. City staff responded that the ordinance under consideration authorizes the pilot application and that a separate resolution and detailed agreement appear later on the agenda. Staff said the pilot is a tool used by municipalities to enable redevelopment and financing.

Craig Halloran of Donaldson Place told the council pilots can place an unfair burden on homeowners when developments pay reduced school taxes. “If it's an apartment building … they end up not paying school taxes. The city ends up paying the school's fees for the students,” Halloran said during public comment.

Mayor Derek Armstead offered figures intended to show how redevelopment can increase revenue: for one redevelopment parcel he said stabilized gross pilot revenue is estimated at about $286,000 annually, with a city share of roughly $232,000; he also said redevelopment could generate millions more in tax revenues over a 30-year term compared with leaving property undeveloped. The mayor argued pilot agreements can help developers obtain bank financing to build projects that increase the tax base.

Councilman Carlos Rivas recorded a “no” vote on the pilot ordinance when council closed the hearing and adopted the item. The hearing record shows at least one other council member asked that the full agreement be posted and that comparative revenue charts be provided, and staff said the agreement was posted on the city website last month and additional information would be shared.

Council adopted the pilot ordinance by roll call after hearing public comment. The administration said it will provide comparative revenue analyses and post the full pilot agreement materials for public review at a later date.

Next steps: Planning staff were directed to publish the pilot agreement and prepare a revenue-comparison chart for a future meeting.