City Council modified a Payment In Lieu Of Taxes (PILOT) agreement to reflect a new lead developer for an artist-focused affordable housing complex.
The governing body unanimously (7-0) approved a resolution (AR-167-15) at its July 13 regular meeting rescinding an agreement for a PILOT and authorizing a revised agreement between the city and Ingerman Development Co.
A resolution was needed to change the name of the lead developer on the 30-year PILOT for a Housing and Mortgage Finance Agency (HMFA) tax credit application, according to City Administrator Cherron Rountree. Ingerman has been involved in the project but originally the lead developer was The Actors Fund.
The property (Block 167, Lot 1) currently is assessed at $496,400, generating a property tax bill of about $32,500 last year.
The PILOT payments will remain the same as the original agreement, which City Council approved in February 2013 via an ordinance. Payments would be 6.28 percent of adjusted income of the property, projected at about $34,657 in year 1 and rising each year until a projected $59,212 in year 30. Payments would average $45,926 over the 30 years, a total of $1.377 million (Click here to view annual projections for the 30-year PILOT).
In June, the Planning Board gave preliminary site plan approval for Rahway Residence for the Arts. The 58-unit affordable artist housing complex will be a four-story structure constructed behind the former Elizabethtown Gas Building at Central Avenue and Hamilton Street.