Moorestown Mall Gets Tax Exemption For Apartment Complex Project

MOORESTOWN, NJ — Township Council has approved a long-term tax exemption for the Moorestown Mall on a proposed apartment complex that was approved by Township Council earlier this year.

Moorestown Council gave unanimous final approval to the proposed ordinance on introduction to grant the long-term tax exemption to Moorestown Mall, LLC, when it met Monday night.

The proposal notes that Moorestown Mall, LLC, will change its name to MT Residential Urban Renewal, LLC. The approval came after a public hearing in which no members of the public spoke.

The project calls for the construction of 375 units, with a 20 percent set aside for 75 affordable units. The plan also calls for the addition of a hotel at the mall. Read more here: Apartment Complex, Hotel Approved For Moorestown Mall

The tax exemption will be in effect for the housing project only for 30 years from the completion of the project. Charges would be assessed as follows:

• First 15 Years: The amount equivalent to 12.5 percent of the annual gross revenue generated from the project;
• Years 16-21: An amount equal to 12.5 percent of the annual gross revenue generated from the project or 20 percent of the amount of the taxes otherwise due on the value of the land and improvements, whichever is greater;
• Years 22-26: An amount equal to 12.5 percent of the annual gross revenue generated from the project or 40 percent of the amount of the taxes otherwise due on the value of the land and improvements, whichever is greater;
• Years 27-28: An amount equal to 12.5 percent of the annual gross revenue generated from the project or 60 percent of the amount of the taxes otherwise due on the value of the land and improvements, whichever is greater;
• Years 29-30: An amount equal to 12.5 percent of the annual gross revenue generated from the project or 80 percent of the amount of the taxes otherwise due on the value of the land and improvements, whichever is greater; and
• Thereafter, the project would be taxed as a regular assessment pursuant to law.

In January, the Pennsylvania Real Estate Investment Trust (PREIT), which owns the mall, entered into a rezoning agreement to allow a proposed apartment complex and hotel on the property.

In total, up to 1,065 units may be built, with a portion set aside for affordable housing. Read more here: Moorestown Mall Owner Anticipates $150M From Apartment Complex, Hotel

In February, Moorestown Council adopted a resolution to recognize the Moorestown Mall as an area in need of redevelopment, following a recommendation from the township's planning board.

The designation means tax breaks are available to PREIT and any other entity looking to develop on the site. Read more here: Moorestown Mall Deemed Area In Need Of Redevelopment

The plan helps satisfy the township's unmet need of 310 affordable units under the settlement it reached previously with the Fair Share Housing Center. These units would count for the township's fourth round obligation under the Mount Laurel Doctrine.

Sign up for Patch email newsletters. Learn more about posting announcements or events to your local Patch site.