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Council hears synopsis of Collins Urban Renewal pilot agreement; developer pledges contribution to affordable housing fund
Summary
Council introduced Ordinance 2026-23 to authorize a long-term tax-exemption pilot for a Collins Urban Renewal project and heard a presenter describe PILOT percentages and a $100,000 contribution to the borough's affordable housing fund; council members asked about affordable housing requirements and compliance.
The Borough Council of Bound Brook heard a synopsis on June 9 of Ordinance 2026-23, authorizing a pilot (long-term tax-exemption) agreement between the borough and Collins Urban Renewal LLC for a cluster of downtown lots.
A presenter representing the proposal described the pilot structure as a multi-decade payment-in-lieu-of-taxes scheme: payments would start at 10% of annual gross revenue (AGR) for early years and increase gradually to about 14% by year 30 under the proposed schedule. The presenter said the pilot term could be up to 30 years, which counsel confirmed is permitted under state law.
On affordable housing, a council member asked whether the project would include on-site affordable units. The presenter replied, “So there's not the construction of affordable housing, but … there is going to be a contribution financial contribution of a $100,000 to the affordable housing cost fund,” and referenced an amendment to the redevelopment agreement with that contribution.
Council members followed with questions about timing, compliance and how payments would flow to the borough. The council voted to advertise the ordinance and set a public hearing for June 23 so the public and planning staff can review the redevelopment agreement amendment and related documents.
Next steps: the ordinance will be advertised for a public hearing on June 23; the redevelopment agreement amendment and the proposed $100,000 contribution were described by the presenter and will be reviewed in the public hearing process.
