Council Approves Introduction Of New PILOT Projects In Parsippany

PARSIPPANY, NJ — The Township of Parsippany-Troy Hills recently voted to approve the introduction of three new PILOT projects in the township, a decision that some residents are not happy with.

Prior to the Nov. 9 town council meeting, several residents had already spoken out on social media against the idea of the town entering into other PILOT agreements, with some even creating a flyer for the public, a move that the mayor disagreed with.

"You received misinformation, telling all of you to show up, attempting to demagogue issues of importance here in town," Mayor James Barberio said.

PILOT agreements, also known as municipal tax abatements, are deals that enable a developer to switch their standard tax payments for a property to a fixed, yearly payment to the municipality.

Some municipal officials have called them useful tools to attract development to distressed or blighted areas of town. But their use has drawn criticism from opponents, some of whom caution that the deals can enable a big developer to skip out on paying their fair portion of property taxes.

In Parsippany, the council was voting on three specific PILOT programs for redevelopment projects at 2 and 3 Campus Drive and 249 Pomeroy Road.

Barberio said that a more informative presentation about the projects will be presented to the public in December.

Prior to the council vote on the matter, Barberio discussed the reasons behind supporting the introduction of the ordinances and described what a potential "no" vote meant.

"A no vote tonight is a vote in favor of keeping vacant blighted buildings, which is bad for Parsippany, but it also sends a message to the real estate community that Parsippany is not open to economic development. That's wrong. You can't say you are for economic development and then vote against the measures that are necessary to create economic development. If we don't do this, I urge all Parsippany residents to hold onto your wallets, because taxes will go through the roof," Barberio said.

Councilman Justin Musella, who was the sole no-vote on the introductions, said that he had a different opinion on the matter.

"I recognize that our significant amount of office property that is vacant is a serious problem; that is definitely a problem that we all need to be proactive about. However, what I object to is using a program that has documented, in many cases, to have negative effects for taxpayers, negative effects for our first responders and then obviously, the large one, is the impact on our schools," Musella said.

A key aspect of PILOTs is that, unlike traditional property taxes, which are split between the town, school system and county, in a PILOT, the city or town keeps nearly all the money.

"Because state laws do not require that the local school districts receive a direct portion of the PILOT, local officials should take the opportunity during the negotiating process to ensure that if the new property directly affects the school district, accommodations should be made to include the school district with compensation or appropriate credit," an article by Robbi Acampora on the New Jersey School Boards Association website said.

Musella also objected to the idea of approving the introduction of an ordinance given the lack of information offered to the council about the projects.

The mayor stated that the council and the public were going to be provided with more information in the near future.

"It's a difficult environment right now and we need to be in front of it because it's not going to get any better; in fact, it's going to get worse and if we don't retrofit these buildings and we don't do what we need to do, it's going to be tough to recover. I can only tell you that from experience, from being mayor. I'm willing to work with you, and I'm willing to work with the entire council. You will get those financials," Barberio said.

Former Parsippany Township Attorney John Inglesino also spoke, explaining what PILOT programs are and why they might help the town. One major point that Inglesino repeatedly brought up to the council was the statement that the three PILOT projects would not have an effect on the school district.

"The school gets every dime. If the school board approves a budget, they are guaranteed every nickel that's been approved in their budget, whether there is a PILOT, whether there's not a PILOT...The school gets paid," Inglesino said.

The motion to introduce the PILOT projects on the agenda was ultimately passed 4-1.