Now we know that the Mayor & certain members of the Borough Council are aiming to partner with for-profit developers to build 500 MORE rental apartments on River Road, right next to the 245-unit Ivy project that went up last year.https://chathamchoice.org/2024/09/wait-another-big-project-on-river-road/
They claim that in return for the chance to collect big rents on the new complex, the developer will throw in some “free” goodies for the Borough, including a lovely riverside park.
Of course, in reality nothing is free.
To get the riverside park and other “free” goodies, the Council would have to agree to excuse the property taxes on the new project for 30 years.
That means instead of picking up part of the Borough’s ever growing expenses, automatically reducing your tax bill, the developer would pay smaller amounts known as PILOT payments.
Why would Council members even consider that? Because unlike tax money, which is subject to certain limits, the Council could spend the PILOT money on frills, gifts, or whatever else, and go right on raising your property taxes to pay for the “free” riverside park and other goodies.
In other words, you would pay for the “free” goodies for the next 30 years.
Why would the Council take on that long term burden – and put more than a thousand more people and hundreds more cars on River Road forever – when it could pay less for whatever the Borough needs and wantson its own?
Ask the Council’s financial advisor on Tuesday, October 15, 7:30 pm, Borough Hall, 54 Fairmount Avenue. Use the side door. Take the elevator to the upper level. Or Zoom here:
There are many different ways to meet state mandated affordable housing obligations, but unless the Mayor & Council get a jump on the deadlines, their options will be severely limited.
That’s why the Mayor has scheduled a public workshop for June 27: to let the public have its say before unveiling her plans.
Are the Mayor & Counciltaking the steps necessary to get a good result for the Borough?
Ask them!
Are you are investigating lower-density, environmentally superior options, like converting existing market rate apartments to affordable ones?
If not, why not? What are you waiting for?
Are you unaware that waiting means forfeiting options?
Are you unaware that if you procrastinate too long, we’ll be forced to accept more huge projects like the Ivy – or even bigger.
If you’re resigned to accepting more big projects, what are you doing to make sure we get a better deal this time?
Here are the deadlines facing the Mayor & Council (additions and corrections welcome):
03/31/24 – Deadline for the developer BNE to file the Periodic Report on Total Project Costs, due within 90 days of Substantial Completion under the terms of the December 2023 financial (PILOT) agreement for the Ivy at River Road
05/01/24 – Deadline for the Borough to bill the developer of the Ivy apartment project on River Road for the second quarterly payment of the annual property tax substitute known as a Payment In Lieu of Taxes (PILOT), which was unpaid as of 06/10/2024
06/18/24 – Deadline for the Borough to report non-residential fees collected for the Affordable Housing Trust Fund
06/30/24 – Deadline for the Borough to submit to the Morris County Superior Court and Fair Share Housing Center a quarterly report on the progress of the 15-unit, 100% affordable project to be built on Bowers Lane in Post Office Plaza
08/01/24 – Deadline for the Borough to bill the developer of the Ivy apartment project on River Road for the third quarterly payment of the annual property tax substitute known as a Payment In Lieu of Taxes (PILOT), which has gone unpaid as of 06/10/2024
09/16/24 – Deadline for the Borough to report residential fees collected for the Affordable Housing Trust Fund
09/30/24 – Deadline for the Borough to submit to the Superior Court and Fair Share Housing Center a quarterly report on the progress of the 15-unit, 100% affordable project to be built on Bowers Lane in Post Office Plaza
10/20/24 – Deadline for the state to announce the Borough’s affordable housing quota for Fourth Round 2025-2035
11/01/24 – Deadline for the Borough to bill the developer of the Ivy apartment project on River Road for the quarterly payment of the annual property tax substitute known as a Payment In Lieu of Taxes (PILOT), which had gone unpaid as of 06/10/2024
12/31/24 – Deadline for the Borough to submit to the Superior Court and Fair Share Housing Center a quarterly report on the progress of the 15-unit, 100% affordable project to be built on Bowers Lane in Post Office Plaza
01/31/25 – Deadline for the Borough to adopt a resolution accepting an affordable housing quota for Fourth Round 2025-2035
02/28/25 – Deadline for “interested parties” to challenge the Borough’s Fourth Round 2025-2035 affordable housing quota in a new dispute resolution program
03/31/25 – Deadline for the IVY developer BNE to submit the Auditor’s Report to the Borough and DCA
03/31/25 – Deadline for the Borough to begin construction of the 15-unit, 100% affordable apartment project on Bowers Lane in Post Office Plaza.
03/31/25 – Deadline for the Borough to submit to the Superior Court and Fair Share Housing Center a quarterly report on the progress of the 15-unit, 100% affordable project to be built on Bowers Lane in Post Office Plaza
06/30/25 – Deadline for the Borough to file its Housing Element & Fair Share Plan, including a new showing that it’s consistent with state policy on development and redevelopment
08/31/25 – Deadline for challenges to the Borough’s Housing Element
12/31/25 – Deadline for the Borough to settle challenges to its Housing Element or explain why it won’t make the changes requested
03/15/26 – Deadline for the Borough to adopt any and all the ordinances, rezoning, and redevelopment areas required by the Housing Element
03/31/26 – Deadline for the Borough to get a Certificate of Occupancy on the 15-unit, 100% affordable project on Bowers Lane in Post Office Plaza
09/26/26 – Expiration of the Borough Third Round immunity from builders’ remedy lawsuits and exclusionary zoning challenges
Can we stop the overdevelopment that is beginning to choke the roads of Chatham Borough, pollute our air, inflate our taxes, and even threaten to swamp our schools?
Yes, we can.
All we need to do is to hold our new Mayor & Council accountable for not selling us down the riveragain, as they did with the monstrosity at the corner of Watchung Avenue and River Road.
We can do that. You can help.
Tell the Mayor & Council not to make any more concessions to the would-be overdevelopers. Make them promise not to sign any more PILOT agreements, waiving the developer’s property taxes at the expense of the rest of us. Make them promise to do their due diligence and hold out for terms favorable to the Borough.
We need to start asking questions, demanding answers and promises, and holding our Mayor & Council accountable now, before they make any irreversible decisions.
Strong, sustained, public scrutiny and pressure can inspire and empower our elected representatives to stand firm in negotiations with tough real estate sharks, backed by teams of experts wielding state laws that give developers the upper hand.
Are you wondering why the Council would even consider another project at River Road, given the massive, 245-unit Ivy apartment project that just went up at the corner of River and Watchung?
Simple: Knowing that both political parties have so weakened our zoning laws that they cannot prevent construction of two more giant apartment projects at River Road, the Mayor & Council aspire only to gain some influence over the new projects by adopting some new redevelopment plans. https://patch.com/new-jersey/chatham/chatham-marks-some-river-road-lots-need-redevelopment
As at the Ivy, the new developments will be out of the reach of most retirees, millennials, and young families, because almost all of the apartments will be offered at market rates, with monthly rents between $3,000 for one bedroom apartments, and $7,000 for three bedroom units. How many downsizers or young families can afford that?
Only 15% of the new apartments will be set aside for low and moderate income families. That means Chatham would have to accept 1,000 new units (a more than 30% increase in density) to get even 150 units toward our ever increasing affordable housing quota.
Chathamites won’t get first dibs on the affordable apartments, either. But Chatham taxpayers will suffer higher density, pollution, and lower quality of life. And that’s a best-case scenario, which the Mayor & Council could achieve only with deft negotiation.
If the Council doesn’t stand strong, but rather succumbs to the developer’s standard demand for a 30-year PILOT property tax exemption, that will mean higher taxes for everyone else and it will leave the Borough on the hook to meet increasing demands for municipal services.
Negotiated PILOT payments-in-lieu of taxes should help with those expenses, but it’s the Borough that will bear 100% of the risk that the revenue projections won’t pan out, as is happening at similar projects that have been reduced to offering discounts: https://www.woodmontstation.com/
If the statewide luxury apartment construction frenzy leads to a glut, causing the bubble to burst and rent rolls to plummet, it will be a disaster for Chatham Borough.
Of course, by then the developer will be long gone, and Borough taxpayers will be left holding the bag.
What about the nice public “amenities,” like the riverside trail our Mayor wants to see along the Passaic? It could happen.
Then again, once the Council adopts a redevelopment plan, the would-be developer will begin to chip away at the requirements, until there’s nothing left for the public, as happened with the monstrous 245-apartment Ivy project.
The lesson is clear: Our Mayor & Council should negotiate the best possible deal, and refuse to finance it with a PILOT tax break no matter how many sweet promises the developers make.
In short, while our Mayor & Council cannot prevent more development at River Road, they need not and must not sacrifice the long-term well-being of the Borough by waiving any more requirements or granting any PILOT agreements.
If a developer won’t build without a PILOT, that means it’s a bad deal and the Borough shouldn’t get involved.
But to get that “free” help, what would we need to sacrifice in lower quality of life, more traffic, pollution, crowded schools, higher municipal and school costs?
And is it really “free” if in return we must grant the developer a PILOT tax exemption, causing higher property taxes for the rest of us?
Shall we plunge ahead on blind faith or shall we first do our due diligence?
Would a pretty trail along the Passaic River really make up for all that sacrifice?
Our Borough Council got some good news at its April 10 meeting.
Retired Bloomfield Fire Captain Robert Penn reported that the apartment project going up on River Road is far safer than he had expected. Check out his words at minute 1:29:28:
Of course, our volunteer fire fighters are still hobbled by ancient fire trucks and have no good way to put out fires in the growing number of electric cars.
