Controversial PILOT Projects On Agenda For Parsippany Special Meeting

PARSIPPANY, NJ — The Parsippany Town Council will meet in a rare afternoon session on Thursday to make decisions on three contentious PILOT projects, despite the large amount of public opposition.

At the 1 p.m. special meeting, council members may expect an extensive attendance of residents opposed to the tax deals, known as payments in lieu of taxes or PILOT programs.

Last week's meeting was forced to be rescheduled when more than 200 people exceeded the permitted capacity of the council chambers, causing the Parsippany Fire Marshall to shut it down.

Residents and school officials were angry when Council President Loretta Gragnani rescheduled the meeting for 1 p.m. on a weekday, raising concerns that council leaders were seeking to limit public attendance with a mid-afternoon meeting on a weekday.

According to a video posted online from the council meeting, the crowd of Parsippany residents was chanting "Shame on you" after officials shared the news of the new schedule. However, after the loud criticism and chants, the time of the meeting was finally adjusted to 7 p.m.

That change was never made official.

Last week, the township issued an official notice, indicating that due to the size of the agenda, they would need to hold that meeting at 1 p.m.

During a five-hour hearing on Dec. 5, during which scores of residents spoke out against the practice, Councilman Justin Musella was the sole objector and the vote was 4-1 to approve three PILOT programs.

Mayor James Barberio has maintained that PILOTs are required to attract developers to destroy superfluous office space in town and replace it with revenue-generating residential or commercial space.

"If we don't start doing things and working with them, get ready for round four of affordable housing. That's what they're getting ready for. How do I know that? They pretty much told me that, so decisions have to be made; we have to bring revenues in. We're going to generate revenue with these projects," Barberio said.

Musella has continued to oppose his Republican colleagues and the mayor on this subject. He invited locals to the town hall meeting last week, which was attended by numerous township residents.

On a Facebook live broadcast with more people streaming the meeting, Musella, Parsippany Board of Education elect Andy Choffo, and Ken Kaplan of KenKap Realty detailed the complicated process of negotiating the tax arrangements and why he opposed them.

When explaining the financial details of one of the authorized projects, Musella stated that without a PILOT, that development would have paid more than $110 million in taxes over the course of the 30-year deal.

"These developers receive the most generous possible terms imaginable. Thirty years and a land tax credit—what does a land tax credit mean? That means, on the land that they own, separate from the improvements of the land, you are rebating them for the taxes that they pay to the municipality," Musella said.

The PILOT reduces the tax bill to around $53 million.

"Now, who makes up that difference is the question everybody is asking… Well, you have an early Christmas gift; you get to make up this difference, not only for this building but for the other five buildings that are also receiving PILOTs," Musella said.

The special meeting on Thursday will be held at the Parsippany Police Athletic League, 33 Baldwin Road, rather than at the town hall.