Council Candidate, BOE Member Press Township on PILOT Oversight and Schools' Role at Berkeley Heights Council Meeting

With the Nov. 3 election less than two weeks away, a Township Council candidate and a Board of Education member used public comment at the Tuesday, Oct. 20 council meeting to ask how the township oversees its payment in lieu of taxes (PILOT) agreements, and whether the school district will have a role in future ones. Union County Life is summarizing the exchange.

PILOT agreements let developers make payments to a municipality instead of paying traditional property taxes. The payments go to the township, with a portion going to the county. None of the payments go to the school district.

Tom Maciejewski, a Republican candidate for Township Council, asked who oversees the township’s six PILOT developments, focusing on 100 Locust Ave. He said the agreement requires the developer to submit an annual report to the mayor and council detailing the development’s units, rents, and revenue.

Township Administrator Liza Viana said the finance office, including the tax collector and chief financial officer, handles PILOT collections and reporting. Township Attorney Scott Salmon said the chief financial officer is ultimately responsible for oversight. Mayor Angie Devanney said she has seen PILOT figures during budget season but was unsure how the reports reach her.

The exchange grew tense when Viana asked Maciejewski what he was trying to get at. She said she wanted to help him but would not single out an employee if he had found an error. Councilwoman Susan Poage said she reads the materials that come across her desk, and she objected to what she viewed as an implication that council members were not doing their due diligence. Maciejewski said he was asking specific questions about the review process, not accusing anyone of wrongdoing.

Maciejewski said his preliminary research showed revenue at 100 Locust Ave. at 56.5% above the original forecast, and that rents projected at about $1,900 have risen to about $5,000. He described the figures as preliminary and offered to review them with council members. Devanney said the township’s financial advisor and redevelopment attorney have confirmed that the PILOTs are generating substantially more revenue than originally projected. She cautioned that revenue alone does not show profitability.

On Terrace II, Maciejewski noted that the redevelopment agreement the council approved in June is contingent on a PILOT. Salmon said approving a redevelopment plan and agreement does not obligate the council to grant a PILOT. Officials said the developer has not yet proposed a PILOT for Terrace II.

Board of Education member Natasha Joly, speaking as a resident and not on behalf of the board, cited council members’ responses to a TAPinto Berkeley Heights candidate questionnaire. In those responses, members expressed support for collaborating with the school district. She asked whether those members would approve a Terrace II PILOT negotiated without the district’s involvement or without money set aside for schools. She directed the question to council members other than John Foster and Poage, whom she noted work for the school district. No council member responded during the meeting.

Find more Berkeley Heights government and local news at unioncountylife.com.

FAQ

How does Berkeley Heights oversee its PILOT agreements?
According to township officials, the finance office, including the tax collector and chief financial officer, handles PILOT collections and reporting. The attorney said the chief financial officer is ultimately responsible for oversight.

Does the school district receive PILOT payments?
No. PILOT payments go to the township, with a portion going to the county.

What did the candidate say about 100 Locust Ave.?
Tom Maciejewski said his preliminary research showed revenue 56.5% above the original forecast and rents that have risen from about $1,900 to about $5,000. He described the figures as preliminary.

Has the developer proposed a PILOT for Terrace II?
Officials said the developer has not yet proposed one.