North Haledon approves up to $20 million lease-purchase with Passaic County Improvement Authority to acquire municipal offices

The Borough of North Haledon on Aug. 21 adopted Ordinance #16-2024, authorizing the execution of a lease-purchase agreement with the Passaic County Improvement Authority (PCIA) to finance acquisition and renovation of property at 535 High Mountain Road (Block 18.01, Lot 5). The ordinance authorizes use of County Guaranteed Lease Revenue Bonds, Series 2024, in an aggregate principal amount not to exceed $20,000,000, and contemplates a county guaranty under N.J.S.A. 40:37A-80 to support the sale of the bonds.

According to the ordinance, proceeds from the bonds will be used to acquire the property and renovate the existing building to accommodate municipal offices and a police headquarters, including furnishings. The Borough pledged its full faith and credit to timely lease payments under the Lease Agreement and authorized designated borough officers — the Mayor, Business Administrator and Chief Financial Officer — to execute Project Documents and related financing instruments, subject to consultation with bond counsel and other advisors.

Council opened and closed the public comment period with no speakers. By unanimous roll call the council adopted the ordinance on second and final reading and directed the Clerk to publish the required notice. The ordinance instructs Borough officers to cooperate with the Authority on marketing and disclosure documents for the bond sale and allows for insertion of final financing terms consistent with parameters filed with the Local Finance Board.

The ordinance contains statutory references to the County Improvement Authorities Law and to specific provisions authorizing the Authority to finance and lease public facilities; the County’s guaranty is described as full, unconditional, and irrevocable to provide security for bondholders. The council did not vote on bond sale terms at the meeting; those terms will be set later as permitted by the ordinance.