Mount Arlington officials defend redevelopment process and table Rooney Road tax-exemption ordinance

Mayor Stanzilis used the Borough Council meeting on Dec. 2 to push back on what she called misinformation about local redevelopment and to explain how the town evaluates proposed projects and payment-in-lieu-of-taxes (PILOT) agreements.

“The Governing Body has always and will always continue to put the residents of Mount Arlington and their needs first, with the mission of smart growth and fiscal responsibility,” Mayor Stanzilis said, describing the Borough’s review process. She said Ordinance 06-2025 — which residents had discussed in recent weeks — “did not approve a new PILOT agreement, but instead transferred the already approved financial agreement from one developer to another after the original developer’s death.”

Why it matters: Residents at the meeting repeatedly asked how PILOT revenue will affect school funding and whether new housing will increase student enrollment, matters that factor into the town’s broader fiscal outlook and a Board of Education referendum set for Jan. 27, 2026.

The mayor and other officials described a multi-step review the Borough uses for redevelopment proposals. The Borough hires a third-party fiscal consultant — in the current cases NW Financial — to determine whether a PILOT is needed, to evaluate the impact on the school district and municipal services, and to negotiate terms on behalf of the Borough. Dan Marinello of NW Financial was noted as the party who will present the firm’s financial findings in more detail at a future meeting.

Officials said the Board of Education has experienced a long-term enrollment decline — from 479 students in 2001 to 372 today, a 21.5% drop — and that the Borough’s analysis does not project enrollment increases large enough to overwhelm school infrastructure. The mayor also noted a Memorandum of Understanding that reduced a prior municipal payment to the school district (previously $125,000) and said the district will pursue a referendum to stabilize its budget.

Public comment focused on transparency of the financial analysis and the structure of proposed PILOTs. Multiple residents asked the council to publish the NW Financial report and to clarify the length and graduated payment structure of proposed PILOTs. Council members agreed to consolidate public redevelopment documents on a single landing page on the Borough website.

On the specific ordinance before the council, Ordinance 07-2025 — a proposed tax exemption and financial agreement for Block 17, Lot 18 (61 Rooney Road) tied to Alfa Investments Urban Renewal, LLC — the council opened a public hearing but voted to table the measure for further review. The motion to table was made by Council President Delaney, seconded by Councilman BaRoss, and carried on a unanimous roll call. The ordinance is scheduled to return to the Dec. 16, 2025 regular meeting.

What the council did and did not decide: The council did not adopt the 61 Rooney Road agreement at the Dec. 2 meeting; it postponed action to allow more public review and for the Borough’s fiscal consultant to provide fuller detail. Officials repeatedly emphasized that off-site improvements tied to developments (for example, road paving) would be the developer’s responsibility when required by approvals and that deed restrictions for affordable units remain a distinct legal instrument from a project’s PILOT term.

Next steps: The council will revisit Ordinance 07-2025 on Dec. 16, and the Borough Administrator said staff will compile a dedicated online landing page with related redevelopment documents, and the Borough will arrange for NW Financial’s presentation of its analysis. In the meantime, residents were encouraged to contact the Board of Education about the school budget and the Jan. 27 special election.