KEYPORT – Borough Council members have approved a developer’s request for a tax abatement that will allow the construction of a 120-unit apartment building to move forward.
On Dec. 18, members of Keyport’s governing body voted unanimously to approve a payment in lieu of taxes (PILOT) agreement with Mariners Village at Keyport Urban Renewal LLC.
Clay Perlman’s $37 million redevelopment plan has already been approved by the Planning Board, municipal officials said. Perlman plans to construct a four-story apartment building on a partially vacant waterfront property near Brown’s Point Marina, 357 W. Front. St.
According to a report posted on the municipal website, the building will include 40 one-bedroom apartments and 80 two-bedroom apartments, all of which will be rented at market rates. The building will have 175 parking spaces on-site.
The 25-year tax abatement, also known as a PILOT agreement, was requested by Perlman.
Business Administrator Stephen Gallo previously said the agreement would not mean the applicant is exempt from paying property taxes entirely once the project is complete.
“(The developer) will pay exponentially more in property taxes under the tax agreement,” Gallo said. “The project, even with the tax abatement, will pay significantly more in local property taxes than (is paid on the property) today.”
At present, the owner of the West Front Street property pays between $88,000 and $90,000 annually in property taxes, Gallo said. He said the initial PILOT payment would be $319,000.
Gallo said the revenue Keyport receives from the PILOT payment would be used to help fund municipal operations. He previously said 15 percent of the PILOT revenue would go toward the Keyport School District.
He said the redevelopment initiative could help boost economic growth in Keyport and encourage new residents to shop locally. Gallo said new residents should be welcomed into the community. He said Keyport would not be overcrowded even when the apartment building reaches full occupancy.
According to the 2010 Census, Keyport had a population of 7,240 residents. The 2017 estimated population for the borough was 7,085 residents.