On Monday, the Senate Budget and Appropriations Committee unanimously voted to advance legislation (S-1701) that would add additional requirements for the approval of PILOT (payment in lieu of taxes) agreements between municipalities and developers.
Among other things, the bill would require developers seeking a PILOT to include a cost-benefit analysis as part of their application. In addition, municipal officials would be required to submit an independent analysis of the proposed redevelopment project, including the impact on local revenue collections, the local school district and county government.
The New Jersey League of Municipalities opposes the bill, and argues that it will increase costs and limit local decision-making authority.
NAIOP New Jersey issued a statement highlighting its concern with an amendment to the bill that would require the annual service charge to be distributed in proportion to the amount of revenue received by the county, municipality, and school district from the property tax. The organization argues that the amendment will greatly limit the usefulness of PILOT agreements.
While an identical bill has been introduced in the Assembly and referred to the State and Local Government Committee, it has yet to receive a vote.
If interested in learning more about state and local development incentives, please do not hesitate to contact Murphy Partners LLP at (973) 877-6984 or email@example.com.
MURPHY PARTNERS LLP
Murphy Partners LLP is a boutique law firm specializing in real estate, development, and economic incentive advisory. With offices in Newark, New Jersey and New York City, the firm was founded to provide effective, efficient, and creative legal services to meet the distinctive needs of our clients. Through the development of comprehensive legal strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter.