West Orange Councilwoman: Here’s Why I Voted Yes On PILOT

WEST ORANGE, NJ — According to West Orange Councilwoman Cindy Matute-Brown, a recently passed PILOT agreement for a new apartment complex on Executive Drive will work out in favor of the township, despite the concerns of many community members.

The West Orange Town Council approved three resolutions and an ordinance at their Dec. 18 meeting, paving the way for a 425-unit complex, which will include 64 units of affordable housing.

The council approved a 30-year payment in lieu of taxes (PILOT) agreement for the apartment building, a part of the plan that has seen vocal criticism from some West Orange residents.

According to nonprofit Our Green West Orange, the agreement could mean a $100 million tax break for the project’s developer over its lifetime.

• See related article: West Orange Council Greenlights Plan, PILOT For Executive Drive

However, according to Matute-Brown, the deal will mean an overall tax revenue increase for the township, and there will be no negative impact or increases on residents’ taxes as a result.

Last week, Matute-Brown outlined some of the reasons why she voted yes on the PILOT agreement in a social media post. Read her full statement.

The councilwoman said that the municipal share of the tax revenue currently generated for Executive Drive is $375,486. The annual service charge of the PILOT – which is based on the annual gross revenue of the project – will generate an average net revenue of approximately $1,157,324, with annual rate increases as follows:

• Years 1 to 10 – 10.5 percent
• Years 11 to 20 – 11.5 percent
• Years 21 to 30 – 12.5 percent

Matute-Brown said that while a “100 million dollar tax break” may seem incredibly alarming, it’s not the case in this situation.

“The PILOT is less than if built with conventional taxes, this is true… but it is also true that this project would not be built without the PILOT,” Matute-Brown charged. “And while some have directly expressed to me that this is nothing more than a ‘fear tactic,’ the contract of sale states differently. The contract specifically states that the sale is contingent upon an acceptable PILOT. Meaning, if there is no PILOT, there is no sale, no project.”

“The ‘Cost of Doing Nothing’ can itself have detrimental long-term effects,” Matute-Brown continued. “I requested and reviewed 10 years of Executive Drive’s tax history where tax court documents evidence years of tax appeals by both previous and current owners. What it also evidenced was the township’s responsibility to refund paid taxes as a result of declining assessments of the properties.”

The township has refunded about $912,000 in taxes to the previous owner so far, she said.

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