Marlboro has entered into a payment in lieu of taxes (PILOT) agreement with Camelot at Marlboro Urban Renewal, LLC, for the former Entron property on Route 79 at Beacon Hill Road, Marlboro.
The financial agreement was approved by the Marlboro Township Council in a 4-0 vote on July 14. Councilwoman Carol Mazzola recused herself from participating in that issue.
Camelot at Marlboro is expected to consist of 12 buildings that will include 200 apartments that will be rented at market rates and 50 apartments that will be rented under the state’s affordable housing regulations. There are no age restrictions on any of the 250 apartments.
The Camelot at Marlboro project will include a community clubhouse, a pool, parks and open space. The agreement between Marlboro and the developer states that the cleanup and development of the former Entron industrial site is a benefit to the township.
The estimated total project cost is $34.5 million and it is expected to create about 20 jobs during the construction period.
Aschedule for completion was included in the agreement and shows three phases, the first of which has an anticipated completion date during the summer of 2013, with the last phase being completed during the summer of 2015.
The PILOT program will allow the developer to make an annual payment to Marlboro in lieu of property taxes. The duration of the tax abatement is 35 years.
An annual service charge will be paid to Marlboro by the developer for the length of the agreement.
For market rate rentals the service fee will be equal to 10 percent of the annual gross revenue for years one through nine from the initial improvement completion date. For years 10 through 13 the charge will be equal to the greater of 10 percent of the annual gross revenue or 20 percent of the real property taxes otherwise due on the value of the land and the improvements.
Years 14 through 18 will be equal to the greater of 10 percent of the annual gross revenue or 40 percent of the real property taxes otherwise due. For years 19 through 24 the payment will be equal to the greater of 10 percent of the annual gross revenue or 60 percent of the real property taxes otherwise due.
For each of the years 23 through the term of the financial agreement, the annual service charge will be equal to the greater of 10 percent of the annual gross revenue or 80 percent of the real property taxes, the agreement states.
On the affordable rental units, from years one through nine the service charge will be equal to the lesser of 7.5 percent of the annual gross revenue attachable to the affordable units. Years 10 through 13 will have an annual service charge equal to the lesser of 7.5 percent of the annual gross income or 20 percent of the real property taxes otherwise due.
For years 14 through 18 the service charge will be equal to the lesser of 7.5 percent of the annual gross revenue or 40 percent of the real property taxes. Years 19 through 23 will be equal to the lesser of 7.5 percent of the annual gross revenue or 60 percent of the real property taxes.
Each of the years from 24 through the end of the financial agreement will have an annual service charge equal to the lesser of 7.5 percent of the annual gross revenue or 80 percent of the real property taxes.
In accordance with the Tax Exemption Law, the owner of the land will be entitled to a credit against the annual service charge equal to the amount, without interest, of the land taxes paid in the last four preceding quarterly installments.
In other business related to Camelot at Marlboro, the council passed a resolution that amends the redevelopment plan between the developer and the township. The changes will waive the requirement for the planting of certain trees that was required.
Councilman Frank LaRocca, who sits on the Planning Board, said the project itself is already packed with trees. There is a park area planned and LaRocca said plantings should hide the residential development from nearby Beacon Hill Road.
“I can’t imagine where they would put more trees,” LaRocca said.
Instead of providing the trees as stipulated in the original agreement, the developer will pay Marlboro $50,000, with the payments to be made in three installments coinciding with each of the three residential phases of the project.