West New York is considering awarding two financial agreements to a redeveloper to support the construction of residential units in town.
Mayor Gabriel Rodriguez and the Board of Commissioners introduced two ordinances that would each grant a five-year tax exemption at the November 22 meeting. The first ordinance would grant the exemption to 6108 Fillmore, LLC for the property at 6108 Fillmore Place.
The project involves the construction of three residential units at 6108 Fillmore Place, previously a two-story single-family home. The project is nearly completed on the three-story multi-family home with the three units and ground-floor parking.
The town would award the the exemption per the state’s Five Year Exemption and Abatement Law, as well as town ordinances including the Five Tear Tax Abatement Ordinance. These allow the town to enter into a tax agreement with an applicant for the exemption and abatement of local real estate property taxes and the payment of an amount in lieu of full property taxes.
This is as long as the property is in an area declared to be in need of rehabilitation, which the town had previously declared.
In 2020, the property generated $4,851, which represented taxes on the land. Under the five-year tax exemption, 6108 Fillmore, LLC would be required to pay the town full taxes on the land, estimated to be $4,851 per year, reaping the town $24,256 for the three residential units over the five years.
Those payments would occur in addition to the payments-in-lieu-of-taxes to the town under the agreement for the new improvements to the site consisting of the three residential units. When the project is completed, the taxes on the new improvements are estimated to be an annual $21,949 for the three residential units based on the current tax rate.
For the first full year following substantial completion, there would be no payments made on the new improvements. The second full year following completion, an amount equal to 20 percent of the taxes otherwise due on the new improvements will be paid to the town, estimated to be $4,389 of the $21,949. In the third full year, an amount equal to 40 percent of taxes otherwise due on the new improvements will be paid to the town, estimated to be $8,779.
In the fourth full year, an amount equal to 60 percent of taxes otherwise due on the new improvements will be paid to the town, estimated to be $13,169. And in the fifth full year following completion, an amount equal to 80 percent of taxes otherwise due on the new improvements will be paid to the town, estimated to be $17,599.
The project improvements will generate an estimated $43,939 in payments-in-lieu-of-taxes to the town over the five year period. This is in addition to the annual $4,851 in full taxes on the land paid to the town, which totals $24,256 over the five years. Overall, the town stands to make $68,195 in that five-year period.
Following the expiration of the tax exemption, the project is estimated to generate a tax payment of approximately $26,801 This includes the taxes on the land and is based on the current tax rate.
6110 Fillmore Place
The town is also considering an ordinance with the same redeveloper for another project at 6110 Fillmore Place. This project also consists of three residential units in a nearly completed three-story multi-family home with ground-floor parking built on the site of a former parking lot, and the numbers for this agreement are identical to the first.
In 2020, the property generated $4,851 which represented taxes on the land. Under the five-year tax exemption, 6108 Fillmore, LLC would be required to pay the town full taxes on the land, estimated to be $4,851 per year, reaping the town $24,256 for the three residential units over the five years.
Those payments would occur in addition to the payments-in-lieu-of-taxes to the town under the agreement for the new improvements to the site consisting of the three residential units. When the project is completed, the taxes on the new improvements are estimated to be an annual $21,949 for the three residential units based on the current tax rate.
For the first full year following substantial completion, there would be no payments made on the new improvements. The second full year following completion, an amount equal to 20 percent of the taxes otherwise due on the new improvements will be paid to the town, estimated to be $4,389 of the $21,949. In the third full year, an amount equal to 40 percent of taxes otherwise due on the new improvements will be paid to the town, estimated to be $8,779.
In the fourth full year, an amount equal to 60 percent of taxes otherwise due on the new improvements will be paid to the town, estimated to be $13,169 And in the fifth full year following completion, an amount equal to 80 percent of taxes otherwise due on the new improvements will be paid to the town, estimated to be $17,599.
The project improvements will generate an estimated $43,939 in payments-in-lieu-of-taxes to the town over the five year period. This is in addition to the annual $4,851 in full taxes on the land paid to the town, which totals $24,256 over the five years. Overall, the town stands to make $68,195 in that five-year period.
Following the expiration of the tax exemption, the project is estimated to generate a tax payment of approximately $26,801 This includes the taxes on the land and is based on the current tax rate.
In total, the town would benefit from the agreements to the tune of $136,390. Each project consists of three-story multi-family homes with a ground-floor garage and three units each, down from the redeveloper’s proposed 10 unit, four-story building originally shot down by the Zoning Board of Adjustment in May of 2020.
Both ordinances authorizing the five-year tax exemption will be up for a public hearing and vote at the next Board of Commissioners meeting on December 14, at 6:30 p.m. held remotely and or in person. For more information, go to westnewyorknj.org.
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