Linden council adopts long-term tax-exemption agreement for West Edgar Road redevelopment after public questions

The Linden City Council on March 17 closed a public hearing and adopted an ordinance approving a long-term tax exemption and financial agreement with West Edgar Road Urban Renewal LLC for property identified as Block 469 (various lots).

Mayor Antonelli and council members described the agreement as a long-term tax exemption commonly known in Linden as a PILOT (payment in lieu of taxes). "Basically, it's a tool that's in the city's toolbox to encourage development throughout the city," the mayor said, adding that such agreements are typically 30 years under the relevant statutes and permit redevelopment that officials expect will bring substantial municipal revenue.

Resident Carlos Rivas asked for clarity on the term and the municipal benefits. "What is a long term?" Rivas asked. The mayor responded that the instrument is generally 30 years and said the agreement will help revitalize a long-troubled property and ‘‘bring significant dollars into the municipal budget.’’

The mayor also outlined an ongoing redevelopment effort at a separate site, saying the city plans to build about 200,000 square feet of warehousing at 2600 Marshes Dock Road and that planners project approximately $104,285,489.41 in development revenue from planned projects; he said the city had collected $1,856,782.22 in nonresidential development fees so far.

Several speakers during public comment pressed for transparency about PILOT revenue and argued that PILOT proceeds do not go to the school district. "We can't speak now... the majority of the money from the pilot agreements goes to a corrupt municipality," one audience member said during the public comment period, a charge not substantiated in the hearing record. Council members responded by describing PILOTs as a redevelopment tool and said any specific financial flows are part of the city's budgetary process.

The council followed the published hearing procedures — confirming publication and receipt of no written communications — before moving, seconding and voting to adopt the ordinance (motion to close the hearing and adopt the financial agreement was made and seconded). The transcript records the public hearing and the council's action to adopt the ordinance.

Next steps noted by the mayor include further planning by the city planner and future council review of redevelopment plans and associated financial terms.