Plainfield Council Advances PILOT Reporting Ordinance

The Plainfield City Council passed ordinance MC 2026-31 on first reading earlier this month, a measure that would require the administration to produce periodic reports on the city's payment in lieu of taxes agreements with developers. Five council members voted to advance the ordinance. Councilors Graham and McRae abstained. Union County Life is following the measure as it moves toward a second reading.

Councilwoman Darcella Sessomes introduced the ordinance. Under its terms, the administration would be required to submit quarterly written reports on each active long term tax exemption financial agreement, covering the amount due, amount paid, outstanding balances, delinquency status, and any enforcement proceedings. The ordinance would also require an annual summary of PILOT collections, delinquencies, defaults, and enforcement actions.

PILOT agreements are tax incentives for developers that allow payments based on a portion of revenue rather than standard property taxes. The proportion paid increases over the life of the agreement. In Plainfield, most PILOT agreements run 30 years; some, such as a proposal tied to an E 9th Street development, are 15 years.

Sessomes introduced the ordinance approximately one month after Hackensack announced that an audit found $5.4 million in unpaid PILOT payments from developers there. Sessomes said the ordinance is based on feedback from residents. "The conversation was around more transparency around the PILOT, looking at what other cities are doing with pilot organizations," Sessomes said, adding that she wanted to ensure there are no "bad actors" among Plainfield's PILOT holders. She said there was "no malice or ill intent" behind the measure.

Sessomes also said the council does not receive PILOT information on a regular schedule. "Receiving it right when it is time just to pass the budget is not significant enough to really dive deep and to get an understanding of it," she said. She modified the ordinance to direct the administration as a whole rather than the finance director specifically, citing separation of powers concerns.

The Plainfield administration opposed the measure on those same grounds. Corporation Counsel David Minchello stated at the meeting: "It is fully within the right of every council member to request any document that is in possession of the administration. However, this specific ordinance requires the creation of a report. And that is, in my legal opinion, a direction of a department head."

Mayor Mapp called the ordinance "a clear violation of the separation of powers" and vowed to veto it if it passes on second reading. Mapp said that to his knowledge, no developers with PILOT agreements in Plainfield are currently delinquent. He added that the council can already request budget reports and pointed to sheets 4A and 4B of the city's budget, which detail miscellaneous revenues including PILOT payments.

Council President Julienne Cherry said sheets 4A and 4B show only a "lump sum" without detailing each payment. Business Administrator Abby Levenson noted that the finance director already sends monthly financial reports to the council — packages that typically include around 20 attachments covering check registers, wire information, audit trails, vendor activity reports, revenues, and trust account information. Mapp said he was not previously aware of the full scope of those monthly packages and stated the administration would continue providing them.

The ordinance itself states: "Nothing contained in this section shall be construed to authorize the City Council to supervise, direct, or interfere with the day to day administration or management of any municipal department, division, officer, or employee."

Mapp said he thought Sessomes' concerns were reasonable, but maintained that directing the creation of a new report falls outside the council's charter authority. Five council members would be needed to override a mayoral veto.

Union County Life covers Plainfield government and municipal decisions. Stay informed about Plainfield government on Union County Life.

FAQ

Q: What ordinance did Plainfield City Council pass?
A: The council passed ordinance MC 2026-31 on first reading, which would require the administration to produce quarterly and annual reports on PILOT agreements.

Q: Who introduced the ordinance?
A: Councilwoman Darcella Sessomes introduced the ordinance.

Q: How many council members voted in favor?
A: Five council members voted to advance the ordinance. Councilors Graham and McRae abstained.

Q: What information would the reports contain?
A: Quarterly reports would cover amount due, amount paid, outstanding balances, delinquency status, and enforcement proceedings on each active PILOT agreement. An annual summary would cover PILOT collections, delinquencies, defaults, and enforcement actions.

Q: What is a PILOT agreement?
A: PILOT stands for payment in lieu of taxes. These are tax incentives for developers that allow payments based on a portion of revenue rather than standard property taxes. The proportion paid increases over the life of the agreement.

Q: How long do PILOT agreements typically last in Plainfield?
A: Most Plainfield PILOT agreements run 30 years, though some agreements are 15 years.

Q: Why did Sessomes introduce this ordinance?
A: Sessomes said the ordinance is based on feedback from residents seeking more transparency around PILOTs and what other cities are doing. She wanted to ensure there are no "bad actors" among Plainfield's PILOT holders.

Q: What prompted this action?
A: The ordinance was introduced approximately one month after Hackensack announced that an audit found $5.4 million in unpaid PILOT payments from developers there.

Q: Will Mayor Mapp support the ordinance?
A: No. Mayor Mapp called the ordinance "a clear violation of the separation of powers" and vowed to veto it if it passes on second reading.

Q: Does Mayor Mapp say Plainfield has PILOT delinquencies?
A: No. Mapp said that to his knowledge, no developers with PILOT agreements in Plainfield are currently delinquent.

Q: How many votes are needed to override a mayoral veto?
A: Five council members would be needed to override a veto. The first reading passed with 5 votes in favor.

Q: What does the administration say about current reporting?
A: The finance director already sends monthly financial reports to the council with approximately 20 attachments. Budget sheets 4A and 4B detail miscellaneous revenues including PILOT payments.

Q: What happens next?
A: The ordinance moves toward a second reading. If passed, Mayor Mapp has vowed to veto it.