Hoboken City Council Approves PILOT Extension for Clock Towers

Should the low-income residents of Hoboken’s Clock Towers start looking for new places to live?

During their public meeting on March 18, the Hoboken City Council voted unanimously to extend a payment in lieu of taxes (PILOT) agreement for the residential housing development known as the Clock Towers, a 173-unit residential housing complex on Adams Street which includes 68 affordable units.

PILOT agreements allow a property owner to pay a predetermined alternative amount instead of the standard tax that they would pay to the municipality. This concession is commonly made in exchange for a developer’s promise to provide public benefits such as affordable housing.

Proponents say that PILOTs encourage development in blighted areas of a city, while critics charge that a poorly-constructed agreement can allow big developers to skip out on their fair share of property taxes.

The PILOT for the Clock Towers was originally instituted in 1974 and amended in 2000, and was due to expire on March 26.

The extension will allow Jefferson Adams Rehab Company, the project’s developer, three months to gather facts and conduct research to make their case for an additional 10-year extension of the PILOT.

During the meeting, 3rd Ward Councilman Michael Russo – who represents the ward that the Clock Towers building is located in - told his fellow council members that it was the city’s duty to” protect its residents” in their current homes.

“Those residents would not be protected if this pilot isn’t extended,” Russo emphasized.

5th Ward Councilman Peter Cunningham, while supportive of the three-month extension, cautioned that the issue of PILOT agreements and Hoboken goes “way beyond” this one example.

Cunningham said that it was his hope that the property would be the first of several PILOT agreements that will be reviewed in the coming months.

“It’s not just the Clock Towers, it’s Church Towers, it’s Marine View… I’m really concerned that we’re not getting what we should be getting,” said Cunningham, who stated that the potential lost taxes could amount to “millions.”

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