Former Township Committee Member Cautions Planning Board on Unforseen Costs of Honeywell Redevelopment

One of the speakers who drew applause at the Morris Township planning board meeting Monday was former committee member Ron Goldberg. He was at the municipal building as a private citizen this time, expressing his concerns about Honeywell International's proposal to redevelop its 147-acre campus.

Goldberg cautioned the board about hidden expenses that could wipe out the $387,000 in annual tax revenue that Honeywell estimates Morris Township would receive if its project were to proceed to full build-out.  He outlined four areas of concern:

 1. Increased school tax levy vs. Morristown: Because Morris Township and Morristown share a school system, a formula is used to determine each municipality's financial contribution, Goldberg said.. Once the assessed value of the Honeywell projects (condos, offices, hotel, possibly a continuing care facility) is added to the mix, the township could see a significant increase in its financial obligation.

"For  example," Goldberg said, "additional ratables of one hundred million (in Morris Township) would tilt the equalization ratio by one percent if Morristown had no new ratables  during the  same  period." A shift of one percent in today's dollars, he said, would cause approximately $800,000 of school tax to shift to Morris Township taxpayers. "And this would  occur even if if zero children are added  to the school roles."

"Paying a greater share of the school tax levy," Goldberg said, could offset the reduction in Morris Township taxes that Honeywell says would result from the development. 

2. Increased payment to joint library: Goldberg pointed out that Morris Township's financial obligation to the Joint Free Public Library of Morristown and Morris Township would also rise. "The budget hit of $.003 times assessed value of the  proposed condos alone would be $35, 000," Goldberg said. "Full build-out would add perhaps $100,000 to the payment to the joint library."

3. Honeywell's history of property tax appeals: Goldberg cautioned the board that records show Honeywell making many property tax appeals, the last in 2007. "Assuming there would be more years of under-utilization of the Honeywell tract before it is redeveloped in some way," Goldberg asked, "what additional property tax appeal exposure is there for Morris  Township while Honeywell enjoys  tax relief from the State of  NJ?"

4. Affordable Housing Costs: Goldberg's final point related to affordable housing. "We do not currently know if there will be a cost to Morris  Township related to affordable  housing (COAH), but we must be mindful of the risk as we go forward. In the past, the Township was responsible to provide affordable housing as a share of the total number of units built and number of employees  added and  square feet added. Previously, he said, "transfers, remedies and allowances" helped Morris Township to pay that cost, but, "Today, we are unsure of our responsibilities and how they will be funded."

Recommendation:

Goldberg said that these "large impacts" had been "either not included or incompletely treated in the (Honeywell-provided) analysis." Warning that, "Together these would create a net tax increase for all Morris Township taxpayers," Goldberg said the four factors he outlined, "should be proof that you need  independent analysis."

"I recommend you find a way to get an independent analysis that may be more complete that what we  have seen to date," Goldberg said to the board. "This will help you maintain your credibility and  also avoid surprises  and  shocks  to the taxpayers."