BORDENTOWN TOWNSHIP: PILOT funding OK’d

Officials say they were obligated by prior agreements in 2008, 2011.

by James McEvoy, Managing Editor
BORDENTOWN TOWNSHIP —The Township Committee unanimously adopted an ordinance authorizing financing a payment in lieu of taxes agreement previously reached with K. Johnson Urban Renewal, LLC.
   During the April 7 committee meeting, Deputy Mayor Jim Cann noted that the financing agreement was something the committee was obligated to do after previous governing bodies adopted the 30-year PILOT agreement in 2008 and affirmed it in 2011.
   ”(The township) made a binding agreement,” he said. “It’s a contractual obligation.”
   Attorney William Kearns, noted that PILOT agreements are only permitted in the case of a redevelopment and is not an abatement.
   ”This does not abate all his taxes,” Mr. Kearns said. “He starts off paying about 60 percent and the taxes will go up every five years.
   ”It doesn’t mean that they don’t pay taxes,” he added. “It means that they’re paying a lower portion of them and particularly when you’re getting commercial development that are in fact not a burden on schools, for example.”
   Mayor Stephen Benowitz said while a previous committee reached the PILOT agreement, it was a way for Bordentown to be competitive in attracting commercial development.
   ”What went on in the past is the past. My purpose, the purpose of this committee, is to protect this township,” he said. “If you have a chance to read through (the agreement) you’ll find we are protected.
   ”To attract and be competitive with business endeavors, we’re going to have to do this,” he added. “When it comes to being business friendly I don’t think we’re going to (otherwise) be able to attract the ratables in Bordentown Township that the township and its resident so richly deserve to lower their taxes.”
   Bruce Hill, who previously sat on the committee, said in his opinion the agreement was not a sound, safe investment.
   ”This is a bad risk,” Mr. Hill said regarding previous taxes paid by the K. Johnson. “I just think this is a bad deal.”
   Officials noted that K. Johnson is current with tax payments to the township.
   Mr. Kearns noted K. Johnson had paid taxes on land.
   ”The issue came last fall when the buildings went online,” he said. “He was paying his land taxes.”
   Officials noted if K. Johnson did not pay, the township could foreclose on the property.
   ”That’s our out,” Deputy Mayor Cann said.
   According to a copy of the ordinance, the lands impacted by the PILOT agreement include certain lands located between Routes 130 and 206 in the township.
   The re-development plan, according to the ordinance, consists of a mixed-use property including three commercial office buildings – 24,000, 30,000 and 75,000 square feet, respectively, a 75,000-square-foot fitness center, a 45,000-square-foot indoor practice field, a 2,900-square-foot bank and a youth athletic field.