At the July 15 meeting of the Bayonne City Council, ordinances were adopted that would give developers payment-in-lieu-of-taxes deals, or PILOT agreements, to a few developers across the city. The PILOTs, also known as tax abatements, came with givebacks to the city.
The council met virtually via TetherView.
The first PILOT is with Lincoln Equities Group, for a 30-year tax abatement on its project to construct a warehouse at the former Military Ocean Terminal at Bayonne (MOTBY). Approximately 1,500 jobs would be created as a result, according to Council President Sharon Ashe-Narowski.
Lincoln Equities is relieving the city of its responsibility for taking down buildings on the site, which amounts to $2 million in construction costs, according to Ashe-Nadrowski.
The developer is contributing toward road improvements and open space in the area.
Usually an opponent of PILOTs, even Councilman Gary La Pelusa voted in favor of this one, calling it “a home run for the town” because of the jobs created.
Apartments on Ave. A and Prospect Ave.
The second PILOT is a 15-year tax abatement for developer 345-347 Avenue A Urban Renewal LLC for its project on Ave. A. The planning board approved a 31-unit development on the lot in 2019, the former site of Avenue A Auto Service.
Ashe-Nadrowski said the developer will conduct its own garbage collection and contribute more than $100,000 toward constructing more waterfront walkways
While the council adopted the ordinance, Councilmen Neil Carroll and La Pelusa voted against this PILOT.
The next PILOT was for developer TFG 117-121 Prospect Avenue Urban Renewal LLC for its project on Prospect Ave. Approved by the planning board on July 14, the developer plans to build a five-story development with 44 units.
Ashe-Nadrowski said that the tax abatement was for a 20-year term. The property was due for an improvement. The current site is a shoddy industrial warehouse, just a few blocks from the light rail.
The developer will contribute $250,000 to the nearby pedestrian walkway.
Only Councilman La Pelusa voted against the PILOT.
The last financial agreement was for a lease between the city and BCP, LLC for two billboards near 2nd Street.
According to Ashe-Nadrowski, the developer has already paid $1.5 million with an anticipated yearly revenue of $500,000 from both billboards. She said it was a real “win for the city.”
The council voted unanimously to adopt that ordinance.
The next council meeting is August 19, likely to be held virtually. For more information, visit www.bayonnenj.org.
For updates on this and other stories, check www.hudsonreporter.com and follow us on Twitter @hudson_reporter. Daniel Israel can be reached at firstname.lastname@example.org.