I n response to concerns raised by the Sayreville Board of Education, the Borough Council has agreed to consult with the board when negotiating tax abatements that would impact the school district.
Council members Art Rittenhouse, Lisa Eicher, Mary Novak and Daniel Buchanan voted in favor of seeking input from the board when negotiating future paymentin lieu-of-taxes (PILOT) agreements with developers.
Councilmen David McGill and Ricci Melendez voted against the measure.
Under the PILOT agreement, the developer of the Chase Signature Highview Homes rental housing would not pay traditional property taxes. Instead, the municipality would receive an annual PILOT.
The payment does not include taxes for the school district.
The board’s objections are based on the assumption that the development would generate students to be educated in the district.
Mayor Kennedy O’Brien asked Rittenhouse to form a subcommittee to explore the school board’s request for a share of the PILOT revenues for the school district.
Rittenhouse said the committee would likely include a member of the finance office and another council member.
The board will select three additional representatives to serve on the subcommittee, he said.
Rittenhouse said he is optimistic that the subcommittee would be able to reach an agreement.
“I think it can work,” he said. “With any PILOT, I think some portion of it — not necessarily 56 percent, but some portion of it — should go to the school board.”
Projections from the school district’s Vision 2030 long-term strategic action plan can be used to determine a suitable slice of the pie, Rittenhouse said.
Board of President Kevin Ciak said the borough’s decision was exactly what the district was hoping for. “Certainly the board will welcome that dialogue,” Ciak said. “I’m very appreciative, and I know that the board is appreciative that the council took our requests seriously and wants to work together on this.”
In regards to sharing PILOT revenues, he said the board hadn’t held any formal discussions yet, but would seek funds to help mitigate the impact of incoming students.
“I think the basis of any type of agreement like that will be what our impact is in terms of the number of students coming out [of the development],” he said.
The school board’s request for inclusion in future PILOT discussions came after the Borough Council approved a PILOT agreement for the Highview Homes Chase Signature development at an Aug. 11 meeting.
The Highview Homes development, which will be built within the Route 35 redevelopment zone, will consist of 148 rental units built on 29.6 acres.
The development will contain 22 age-restricted units, 67 one-bedroom units and 59 two-bedroom units, and has been projected to introduce 12 additional students into the school district.
However, Rittenhouse, Eicher, O’Brien and Ciak have expressed skepticism about that projection.
“We’re always concerned about the reports that come out … about the impact of a number of students for a particular housing development,” Ciak previously said. “We’re unsure, based on the size of the housing development, whether that number is truly accurate.”