Owners of a shopping center that straddles Rahway and Woodbridge will get a refund of almost $150,000 after a tax appeal settlement on the property, the second in the past decade.
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City Council adopted a resolution (AR-113-23) at its April 10 regular meeting, approving a multi-year tax appeal settlement with Woodbridge Plaza, LLC/Woodbridge Plaza, LLC, owners of the Delco Plaza property on St. Georges Avenue, upon the recommendations of the city tax assessor and tax appeal attorney.
“An acceptable settlement of the tax appeal has been negotiated in which the taxpayer agrees to settle its appeal for an assessment at the fair assessable value of the property consistent with the assessing practices generally applicable in the taxing district and as required by law,” according to the resolution.
About two-thirds of the shopping center is located within Rahway, which is almost 4 acres of the nearly 7 acres in all, and the remainder is located in Woodbridge. Years ago, it was home to a Pathmark that was renovated into a 24 Hour Fitness, now LA Fitness, along with several other retail spaces, including an axe-throwing. and Urban Air Trampoline and Adventure Park.
Woodbridge Avenel, LLC, c/o ISJ Management, which lists an address in Manhattan West 34th Street, filed actions with the state Tax Court, challenging tax assessments for Avenel Plaza, located at 77-101 St. Georges Ave. (Block 276, Lot 7), for the years 2016-2022.
The original tax assessment for the property is $4,025,300, which generated a property tax bill of about $290,000 in 2022. The tax appeal settlement reduces the assessments for 2018 and 2019 by about a quarter: $2.953 million in 2018 and $2.979 million in 2019.
The settlement calls for a refund of $71,769.04 for 2018 and $71,508.18 for 2019 – a total of $143,277. You can find the details and check the math in this Excel file.
City Council also settled a five-year tax appeal settlement with owners of the property in 2014. At that time, the 3.7-acre Rahway portion of the parcel had been assessed at $4,329,500 and was reduced to the current $4,025,300 — a drop of $304,200, or 7 percent. That settlement netted a refund of about $188,000 over the five tax years.
The property was acquired in February 2016 for $8.25 million, according to property records.
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