Public's Doubts Loom Over Morris Street Tax-Incentive Proposal

MORRISTOWN, NJ — If a Morris Street redevelopment doesn't get a tax incentive, the project likely won't happen and more affordable and special-needs housing likely won't come to Morristown, officials warned. But members of the public raised concerns that the arrangement would take funds away from the Morris School District that would ultimately fall on taxpayers.

The arrangement for a proposed 85-unit apartment building — a PILOT, or payment in lieu of taxes — would bring an estimated $6.2 million in extra revenue to the town. The building would also bring 18 affordable-housing units to Morristown, including 14 special-needs homes.

The PILOT, if passed, would make the project profitable enough in its early, challenging years to move forward, according to officials. While the redevelopers would pay land taxes to schools, they would be able to skip for taxes on improvements to the land for the next 25 years — beginning when the project is completed.

Financial analysts said at Tuesday's Town Council meeting that the Morris School District would not miss out on funds.

"School boards in New Jersey develop their expense budget independently of what happens to the ratable base in their town," said town financial advisor Robert Powell. "They are not concerned about raising their own funds. The town raises money for school boards. The school board doesn’t raise money. It doesn’t have the power to tax."

But Councilman Robert Iannaccone said that wasn't the point members of the public made.

"A portion of the (school) budget is not going to be allocated to this project," Iannaccone said. "So increases in the budget will fall on existing taxpayers. I think that’s the point you miss when you’re explaining this, and that’s the point they’re trying to make."

The board voted unanimously — besides Councilman Michael Elms, who was absent — to introduce the ordinance that would grant the PILOT to the developer. A public hearing and final vote are scheduled for Aug. 17.

But one resident did speak in favor of the proposal: Bill Byrne, who represented the ARC/Morris County Chapter, which provides services for people with developmental disabilities.

Byrne said the special-needs housing would empower people to live productive, independent lives, calling the proposal a "win-win."

"This is a long time coming," he said.

Council President Stefan Armington said the project wouldn't benefit the town as much without the PILOT arrangement.

"(Without the PILOT,) will it have the quality that the town has asked for, will it have all of the benefits that the town receives as a result of being part of this public-private partnership? The answer to that is no,” Armington said. “So, that is the tradeoff.”

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