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Fanwood council adopts Korano Square financial agreement, citing redevelopment and tax revenue gains
Summary
The Fanwood Borough Council adopted a payment-in-lieu-of-taxes financial agreement for the Korano Square redevelopment, approving staged revenue percentages and citing an estimated $52 million investment and affordable housing components. Council recorded the ordinance's adoption at second reading.
Council adopted a financial agreement for the Korano Square redevelopment at its Nov. 21 meeting, approving a pilot-style payment-in-lieu-of-taxes (PILOT) arrangement the mayor and economic development liaison said will support public improvements and generate significantly more revenue than the site's current tax contribution.
Liz, the borough's economic development liaison, summarized the redevelopment framework, describing project elements that include storefront improvements on Old South Avenue, relocation of an existing liquor store and a new 5,000-square-foot retail/restaurant space. She said the project includes 21 affordable-housing units and estimated the total private investment at about $52,000,000.
According to the presentation, the financial agreement sets staged percentages of payments on new revenue: 11% in years 1–15, 12% in years 16–22 and 13% in years 23–30. The liaison and the mayor said those payments apply to improvements and are structured under the statute governing pilot agreements to promote redevelopment while preserving a share of new revenue for the borough and other taxing districts.
Liz and the mayor emphasized the expected fiscal benefit for municipal services. The liaison summarized the borough's current receipts from the property as comparatively small and said the agreement would raise annual payments substantially for the municipality; the presentation included multiple numeric estimates during discussion and a correction by the speaker while explaining long-term totals and annual amounts.
No members of the public spoke against the ordinance during the hearing. The council moved to adopt the ordinance at second reading and carried the motion by roll call. The mayor said the administration looks forward to advancing project permits and noted the borough anticipates the developer to begin preconstruction work next year.
Next steps: The adopted ordinance will be published as required by law and staff will proceed with the implementation actions specified in the financial agreement.
