Affordable Housing Project In Cranford May Help Fund Flood Mitigation

CRANFORD, NJ — Two-and-a-half years ago, Cranford's Township Committee unanimously agreed to an affordable housing settlement at 750 Walnut Ave., which committed the town to two Payment in Lieu of Taxes (PILOT) agreements.

Mayor Kathleen Miller Prunty says she is determined to ensure that a PILOT agreement will provide a "net positive benefit" to all Cranford taxpayers and has proposed that the township leverage the PILOT payments from the affordable housing project to fund a "once-in-a-generation" flood mitigation project.

The Township, Hartz Mountain Corp. and Fair Share Housing Center entered into a settlement agreement in 2020 to redevelop half of 750 Walnut Avenue with 250 apartments — 15 percent of which will be affordable housing units.

Retail space and underground parking have also been proposed for this development.

Prunty wrote in a press release that she and the Township Committee are insisting that the 750 Walnut Project, including its PILOT, result in net positive benefit to all Cranford taxpayers.

She argues that the PILOT should be structured in the following way:

• The 15-acre commercial portion will not receive a PILOT.
• The 15-acre commercial portion will continue to pay conventional taxes; and
• The 15-acre commercial portion is expected to generate almost the same amount of property taxes as the entire 30-acre parcel did when it was fully occupied.

Prunty said she and the Township Committee are pushing that the PILOT apply only to the new residential buildings and that Hartz must continue to pay conventional property taxes on the value of the land.

"By structuring the PILOT this way, the completed 750 Walnut Project will generate more property taxes than it did when it was a fully occupied commercial property," Prunty wrote. "This means the school district will receive more property taxes from 750 Walnut Avenue after this project than it ever did before this project."

Prunty argues that this plan is "significantly better" for Cranford's residents than the 2018 PILOT on the Birchwood Avenue Project that entirely eliminated property taxes on the property and its buildings.

Furthermore, Prunty has proposed that the township leverage the PILOT payments generated from 750 Walnut to fund a flood mitigation infrastructure project.

In a typical year, Prunty said the township is only able to invest $1 to $2 million in stormwater projects, but by bonding the PILOT payments, she believes the town will be able to invest 10 times as much without increasing municipal property taxes.

Related: Cranford Will Get $1.8M In State Funding For Flood Mitigation Project

The mayor is proposing the PILOT payments be dedicated to the following infrastructure investments:

• Restoration of the Riverside Drive dike. Storms and use by runners, walkers and bikers have caused erosion in several locations;
• Completing the Southside Stormwater Project;
• Northeast Quadrant Project. Phase 5 of the original plan to address flooding on Balmiere Parkway, Springfield Avenue and Willow Street;
• Stormwater upgrades along Lincoln Ave., from Sherman Park to High Street;
• A Casino Brook project to address flash flooding in the area from Birchwood Avenue and Wadsworth Terrace to Casino Avenue to Riverside Drive;
• An investment in permeable surfaces for the downtown and municipal parking lots; and
• An opportunity to collaborate with the Board of Education and local sports clubs to incorporate stormwater collection and storage into our existing athletic fields.

"Two years ago the Township locked itself into an affordable housing settlement that I believe made the most sense for our community," Prunty wrote. "The opportunity exists to improve upon that plan even further by making sure these two PILOT agreements meet Cranford’s needs first."

Cranford also recently joined 12 other towns in a lawsuit against Gov. Phil Murphy for "violating the Fair Housing Act."

Read more: Cranford Joins 12 Towns In Affordable Housing Lawsuit Against Murphy

In relation to the lawsuit, Prunty said that towns like Cranford have been faced with an over-burdened court system that real estate developers exploit to push through "large over-sized projects."

But Prunty believes that the PILOT agreement from the affordable housing project will give the township an opportunity to fund projects "that will make a difference."

"I fully understand the importance and necessity for a regional flood control project," she wrote. "But such a project is 10-years or more away. We cannot sit on the sidelines for a decade. There will be more storms, more frequent storms, and stronger storms."

Prunty said she plans to support the affordable housing plan, seeing through to the end the commitment made two years ago, and using these funds for necessary infrastructure projects.

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