After months of delay, the Bayonne City Council has adopted a payments-in-lieu-of-taxes (PILOT) agreement for a local warehouse.
The council adopted a PILOT agreement between the city and SWL Urban Renewal LLC for 69-71 New Hook Road. The agreement is for the site of the current Delta Storage, where a new “flex use” warehouse and office space will be constructed by Sixth Wave Logistics.
The council withdrew the ordinance from the agenda at its February meeting, citing the length of the terms. In March, the council reintroduced the ordinance and set a public hearing for April.
In April, the agreement was tabled again after being shortened from 25 years to 20. At the time, the ordinance was still under financial review. Recently, the city tasked financial advisors with reviewing financial agreements to ensure they benefit the city.
“This is commercial, it creates jobs,” said City Council President Sharon Ashe-Nadrowski. “There’s a lot of different infrastructure bringing jobs in town.”
Ashe-Nadrowski reiterated that the city now has all its PILOT agreements analyzed by advisers from a financial consulting firm to “make sure that the city is making money” and that the agreements are “favorable to the city in the terms.”
Redevelopment Counsel Joe DeMarco added that one job is expected for every 1,000 square feet. So with an 80 to 120,000-square-foot warehouse, 80 to 120 jobs can be expected to be added.
The council unanimously voted to adopt the agreement.
Another PILOT was withdrawn from the agenda.
The agreement, with a 20 year-term, would be between the city and Bayonne Equities BII Urban Renewal LLC for 9-11 West 12th Street and 281-289 Broadway. The agreement is for a 10-story mixed-use development on the corner of West 12th Street and Broadway.
The council may take further action on the ordinance at the next council meeting. For more information, go to bayonnenj.org and click on the event on the calendar webpage.
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