Word is that our planners will adjust the numbers shown in that report to allow for the scarcity of vacant land in Chatham Borough, and then try to persuade the State to accept its adjusted numbers as the quotas.
That analysis will probably be similar to that used in 2022, as shown on page 5 of the current Housing Elements, linked here:
The State says the Borough Council has until the end of this January 2025 to negotiate the final quota, and to adopt a binding resolution accepting it.https://www.njlm.org/civicalerts.aspx?aid=2924
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:
While you were relaxing on LBI, our walkable little Borough was changing into to a less attractive place, with motor bikes on crowded sidewalks and higher property taxesfor all.
“Higher taxes?” you may wonder. “How could the Council raise our taxes in the middle of the summer? Did they do that to pay for the new fire trucks we so desperately need?”
Nope. The. Council used a taxpayer asset to make an outright gift, depriving Borough taxpayers of an automatic tax break, and the chance to choose to use those funds for some urgent municipal need, like new fire trucks.
It was not consensual. How did that happen? Here’s how:
Given certain caps on local taxes and spending, the Borough Council’s annual budget is only about $17 million. All other things being equal, a new, taxable development automatically triggers a little more revenue to the Borough, along with lower property taxes for all of us, unless residents vote to spend more instead.
But the Council can take away our right to that tax break, and free up far more spending money for itself, far above the normal limits, simply by designating the new development exempt from property taxes, and allowing the developer to pay smaller, negotiated amounts known as PILOTs.
PILOT payments aren’t subject to the normal spending limits, and the Borough Council isn’t required to share the PILOT money with residents in the form of lower taxes. The Council doesn’t even need to ask voters before spending the PILOT money.
WIth a PILOT, the Council can simply plunge ahead and spend 95% of the revenue however the Council members please. They can spend it on urgent necessities like fire trucks. They can spend it on luxurious pet projects like the Stanley church. They can even spend all the PILOT money on outright gifts, and still go right on increasing the Borough budget and raising our taxes every year.
That’s exactly what the Council did at its August 12 meeting. The Council voted to give part of the Ivy PILOT payments to the Joint School District of the Chathams, a separate entity with its own $90 million budget and its own sources of funds, to cover expenses that would otherwise be shared with Chatham Township. That’s a gift.
That gift would be acceptable if the Borough Council had made it with the informed consent of Borough residents, for instance if residents had voted for it. But in this case, the Council approved the gift on the spot, the same night the public learned about it.
Why would the Council make such a gift when the Borough is in desperate need of at least two fire trucks, according to the experts the Council paid $18 thousand to evaluate the situation? Ask the Council members.
In fact, the effect of that gift is to raise the school tax burden on the Borough, because it’s on top of the Borough’s fair share of the cost of running the schools as determined by a longstanding formula.
Isn’t the Township also kicking in more money to the School District? No.
Most of the members of the Township Committee are too smart to throw away assets as the Borough Council has, done, if only for fear of getting voted out of office. Instead of giving more than its fair share to the School District, the Township Committee is buying TWO new fire trucks right away, to save money.
