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Mahwah Council Hires Financial Adviser, Moves Ahead With Block 82 Redevelopment Planning
Summary
The Mahwah Township Council on Jan. 22 approved contracts for planning and financial advisory services tied to the Block 82 redevelopment and discussed potential PILOT (tax abatement) options; residents raised questions during public comment and the Township said consultant fees will be reimbursed by the developer.
The Mahwah Township Council on Jan. 22 approved professional planning and financial‑advisory contracts to support a proposed redevelopment of Block 82, the roughly 4.3‑acre site the township has identified for residential development, and signaled it will evaluate a possible payment‑in‑lieu‑of‑taxes (PILOT) arrangement as part of those discussions.
Council members voted to amend the Colliers Engineering and Design contract to continue redevelopment planning work (resolution #074‑26) and later authorized a not‑to‑exceed $20,000 professional services agreement with Robert S. Powell, Jr. of Nassau Capital Advisors to model financing options and advise on PILOT terms (resolution #087‑26). Business Administrator Benjamin Kezmarsky said the advisory costs will be reimbursed by the project redeveloper.
Why it matters: the Block 82 site is being reviewed under the township’s redevelopment rules and could include a mix of market and affordable units. A PILOT, if negotiated, would change the tax revenue profile of the project and is often used to make large residential projects financially feasible while preserving some public revenues.
Council President Robert M. Ferguson and other members described the work as preparatory. Kezmarsky said materials and background information on the PILOT option have been posted to the township website. Residents at the meeting requested additional numeric detail: resident John Fesen asked officials for the “third number” he had requested in prior discussions and said he wanted the full financial picture before a decision.
The township’s engineering and planning consultant Colliers will continue work on Redevelopment Plan Amendment #3 for Block 82, and Nassau Capital Advisors will prepare financial models estimating project returns under alternative scenarios, including full real‑estate taxation and various PILOT payment structures. The consultant proposal states it will calculate typical investor metrics (internal rate of return and yield on cost) and provide a narrative report with recommendations.
Next steps: the Council did not adopt a PILOT agreement at the Jan. 22 meeting. Council members said they expect further briefings and formal negotiation if they choose to pursue a PILOT; any final financial agreement would return to the Council for public notice and a vote.
