Construction of Sayreville plant begins
Combined cycle plant
to generate $800K a year; funds may benefit schools
SAYREVILLE — The borough may soon have a little more change in its pockets.
Groundbreaking on the proposed $440 million AES Red Oak Power Plant was recently held. The gas-fired combined cycle power plant is expected to generate 832 megawatts of electric power by three combustion turbines.
In addition, the Jernee Mill Road plant is also expected to generate $800,000 a year for the borough.
Earlier this year, the Sayreville Economic Redevelopment Agency (SERA) approved the company’s abatement application.
Under the Payment in Lieu of Taxes (PILOT) agreement with the borough, AES will pay the borough $800,000 a year in taxes for the next five years.
The PILOT program was set up as a way to give companies incentive to remain in the borough.
Under the guidance of former Mayor James Zagata, the company, along with several other companies, including DuPont and Sabert, entered into abatement agreements generating millions of dollars for the borough.
Had the borough not entered into the PILOT program with AES, that company would have paid about $200,000 to $250,000 this year in municipal taxes.
The plant is scheduled to be complete by early 2002.
The construction is being performed by Raytheon Engineers and Constructors Inc., Princeton, which began site preparation in March.
The plant is also expected to bring in between 100 and 600 employees during construction.
The borough has been exploring giving some of the revenue from at least one of the abatements to the school district.
During the 1999 mayoral election, Kennedy O’Brien, who won the election, proposed sharing some of the funds with the Sayreville Board of Education during discussions with Sabert.
O’Brien said the funds could be used for construction projects in the borough to help with overcrowding problems that have plagued the district for some time now.
That proposal, however, was denounced by Zagata and some members of the Borough Council at that time.
The district is currently considering its options with redistricting.
Just last month, the district’s Blue Ribbon Committee on Overcrowding presented several redistricting proposals to the board.
Those recommendations, if approved, will affect several future residents of the Winding Woods apartments complex on Bordentown Avenue.