Springfield eyes redevelopment zone

In a redevelopment zone, a municipality has the option to institute a Payment in Lieu of Taxes agreement with businesses in the zone, which would require companies to pay 2 percent of their total project cost each year in lieu of taxes. A PILOT agreement cannot last more than 30 years.

By: Vanessa Holt
   SPRINGFIELD — The Township Council has introduced a resolution to create a redevelopment zone on a 44-acre parcel of land in the eastern part of the township.
   The April 9 introduction comes a month after the Planning Board rejected the creation of a similar zone elsewhere in the township.
   The 44-acre parcel is already zoned light industrial and is owned by Wrightstown Borough. The borough purchased the land about a decade ago to create a contiguous parcel of land on which to develop an industrial park.
   Last month the Planning Board rejected a 109-acre parcel in the western part of the township along Jacksonville-Burlington Road as a potential redevelopment zone at the council’s request. If approved, the zone would have allowed light industrial development in the area.
   To qualify as a redevelopment zone, an area must not be directly accessible by a major highway and must not be likely to develop on its own.
   In a redevelopment zone, a municipality has the option to institute a Payment in Lieu of Taxes agreement with businesses in the zone, which would require companies to pay 2 percent of their total project cost each year in lieu of taxes. A PILOT agreement cannot last more than 30 years.
   Planning Board Denis Germano said at a board meeting last month that in many cases, the 2 percent paid through the PILOT program to the municipality is more than it might pay under regular taxes, but the business would not have to pay regional school or county taxes under the PILOT plan.
   The main difference between the 44-acre parcel of land and the 109-acre one discussed last month is that the light industrial zoning is already in place on the smaller parcel, said Deputy Mayor Denis McDaniel.
   "We’ve wanted something to happen at the Wrightstown end of town," said Mr. McDaniel.
   The tax benefit to Springfield would not be as great as it would if the entire 109-acre parcel in the western end of the township had been developed, but dozens of residents turned out for Planning Board meetings last month to oppose that idea.
   "They made it clear that they didn’t want it so we listened," said Mr. McDaniel.
   Creating a zone in an area already zoned light industrial and slated for this type of project may be a more amenable solution, he said. "Everybody should be happy," he said.
   Wrightstown had purchased the property to add to a 29-acre parcel in its own boundaries slated for an industrial park.
   Mr. McDaniel said both Wrightstown and Springfield officials are enthused about the possible benefits of the deal.
   The Woodbury-based E.P. Henry company, which manufactures paving blocks for landscapers, has expressed interested in locating at the site, he said.
   The Township Council is expected to give final approval to the redevelopment zone at its May 7 meeting.