No Tax Cuts For Wealthy Company In West Orange, Union Demands

WEST ORANGE, NJ — Several members of one of New Jersey’s largest labor unions are planning to pack a public meeting about Essex Green Plaza in West Orange to blast what they’re calling “unnecessary tax cuts to a wealthy company at the expense of township residents.”

On Wednesday, April 25, the Township of West Orange will hold a public meeting to discuss the “redevelopment of Essex Green Plaza” from 7 to 9 p.m. at the cafeteria in West Orange High School, 51 Conforti Ave.

Spokespeople with 32BJ SEIU said that several of its 12,000 New Jersey members – which includes more than 100 West Orange residents - plan to pack the meeting to voice their opposition to any local taxpayer dollars being spent on the Essex Green Executive Drive Redevelopment Area.

In January, the West Orange Town Council approved a resolution designating the Essex Green shopping center, owned by Clarion Partners, and an adjacent office park on Executive Drive, owned by North Haledon-based PAG Investments, as an “area in need of redevelopment,” possibly making them eligible for special tax breaks from the township.

• See related article: Essex Green Redevelopment Gets Key Vote From West Orange Council

The union members are alleging that PAG Investments has “resisted providing good, union jobs with family-sustaining wages to local residents” at their buildings in the 31-acre Executive Hill Office Park, which includes 10 Rooney Circle and 100-300 Executive Drive.

• See related article: West Orange Office Complex Sold To PAG Investments

According to a statement from 32BJ:

“Last year, PAG Investments replaced union cleaning contractor ABM, with Planned Building Services (PBS) at Executive Drive, part of the redevelopment proposal. PBS then slashed office cleaners’ wages by 60% and eliminated meaningful benefits… Despite the treatment of local employees and the town’s pressing need for tax income, West Orange lawmakers voted in favor of creating the Essex Green Executive Drive Redevelopment Area, opening the door to tax abatements that would cost township taxpayers millions at the expense of wealthy commercial property owners.”

Flor Zuñiga, a West Orange resident and 32BJ member, said she’s worried that if the existing space is converted to mixed-use residential, as per the developer’s proposal, the influx of new residents would increase the strain on local education, sanitation, police and fire resources without any corresponding increases in tax revenue.

“Over 100 of our members are also West Orange residents,” Zuñiga said. “They work hard to support their families and increasing their tax burdens in order to cut taxes for billionaire developers is unjust.”

Several local residents have previously protested the designation of Essex Green as an area in need of rehabilitation, arguing that “modernizing” the shopping center will come at the cost of West Orange taxpayers.

An online petition titled “Say no to the taxpayer subsidy of Essex Green Shopping Center” has gathered 265 signatures as of Tuesday.

"I was disappointed that the rest of the council voted to create an area in need of redevelopment that falls so clearly short of meeting the requirements of the state law," Councilman Joe Krakoviak said after providing the lone dissenting vote in January.

“In contrast to the law's intent of helping areas that can't attract private capital, the owners recently paid nearly $117 million," Krakoviak charged. "This action opens the Pandora's Box for the mayor to offer tax abatements that will likely further enrich wealthy real estate developers at the expense of taxpayers. Without these multi-million-dollar 'incentives,' the owners would still spend more of their money to protect and maximize the return from their substantial investment."

• See related article: Does Essex Green In West Orange Need 'Redevelopment?'
• See related article: Essex Green Ownership Changes Hands

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