Plainfield Council Approves 3 Developer MOUs as City Seeks to Offset Budget Deficit

The Plainfield City Council voted Monday evening to approve three memorandums of understanding (MOUs) regarding agreements with development entities. The council rejected one other MOU, and one was pulled by the administration.

The five agreements on the agenda would constitute $9.5 million in community benefit payments over the long term, with $2.75 million paid immediately upon execution of the agreement.

Union County Life is covering this Plainfield city budget development. After the council emerged from a closed session to discuss contract negotiations, Business Administrator Abby Levenson explained the timing. "We plan to introduce the city's operating budget in the July meeting, which is next Monday. In order to do so, we need to know what the council's decision is on these redevelopment agreements because they come with community benefits in the millions of dollars that impact our operating budget," Levenson said.

Levenson noted the city's fiscal position. "As you know, we have a deficit that we're facing, and so we've been out looking for any revenue source that we can find. That is why we are presenting these agreements to you tonight so that we have these revenue sources to offset some of the deficit and how that will impact residents and employees," she said.

Director of Economic Development Zenobia Fields explained that these are memorandums of understanding as opposed to final development agreements. She noted that several of the projects have already been approved in some form. One project, Citivillage, has already built nearly half of its anticipated units and already has residents.

The council narrowly passed two resolutions, narrowly rejected one, and easily passed a fourth. The fifth MOU was pulled by the administration. There was no discussion of the matter by the council, and no council members explained their votes.

The community benefit payments from these development agreements are expected to help the city offset its operating budget deficit as the administration prepares the budget for council adoption in coming weeks.

For more information about Plainfield government and budget developments, stay informed on Union County Life.

FAQ

Q: What did Plainfield City Council approve on Monday, July 6?
A: The City Council approved three memorandums of understanding (MOUs) regarding agreements with development entities. The council rejected one other MOU and one was pulled by the administration.

Q: How much money do these MOUs represent?
A: The five agreements on the agenda constitute $9.5 million in community benefit payments over the long term, with $2.75 million paid immediately upon execution of the agreements.

Q: Why did the council meet on Monday instead of waiting for the regular July 13 meeting?
A: Business Administrator Abby Levenson explained that the city plans to introduce its operating budget on July 13. The council needed to approve the redevelopment agreements first because they come with community benefits in the millions of dollars that impact the operating budget.

Q: Does Plainfield have a budget deficit?
A: Yes. Business Administrator Levenson stated the city faces a deficit and has been seeking revenue sources to offset it. The community benefit payments from these developer agreements are intended to help address that deficit.

Q: What is the difference between a memorandum of understanding and a development agreement?
A: A memorandum of understanding (MOU) is not a final development agreement. According to Director Zenobia Fields, MOUs are preliminary agreements, and several of the projects referenced already have been approved in some form.

Q: Has any of the development been completed?
A: Yes. The Citivillage project has already built nearly half of its anticipated units and already has residents living there.

Q: How did individual council members vote?
A: There was no discussion of the matter by the council, and no council members explained their votes. The specific vote tallies and member votes are recorded in official council resolution documents.