Parsippany Schools Spar With Council Over PILOT Developments

PARSIPPANY, NJ — The Parsippany-Troy Hills School District has made a public statement regarding the ongoing conversation of financial arrangements known as PILOTs, being used in town.

Over the last two town council meetings, the council has voted to approve the introduction of three new PILOT projects in the township, a decision that some residents and the school district are not happy with.

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.

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

Mayor James Barberio and other council members have argued that PILOTs are required to attract developers who can turn the township's oversupply of vacant office buildings into revenue-generating properties.

"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," Barberio said.

Over the last two meetings, Barberio and the council have faced an abundance of criticism from the public and members of the Parsippany Board of Education, who claim that the newly proposed PILOTs will underfund the school system even as new developments undoubtedly add additional kids and costs.

On Nov. 21, Alison Cogan, the president of the Parsippany Board of Education, spoke out, expressing frustration that the school district was not being included in any of the conversations for the PILOTs.

Following the meeting, the school district has since released a statement, asking for members of the public to attend the next council meeting, planned for Dec. 5, and speak out against the projects.

Tim Berrios, a recently elected member of the Parsippany Board of Education, said that a district study predicted an enrollment increase of 1,000 students from all of the residential units currently either under construction or being proposed in town.

"On average, each student costs approximately $21,800 annually and to sustain the high rankings of all our schools. Any additional students we welcome through new residential development will require funding as well. Without those taxes, our existing and new students will suffer, and Parsippany-Troy Hill will become a less desirable place to live, which will cause a decrease in home values," the Board of Education said.

Councilman Justin Musella, who was the sole no-vote on the introduction of the PILOTs, 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.

"The Board of Education is NOT in favor of any PILOT agreements for residential development, especially without written, signed agreements that clearly define the fiscal compensation to the school district. The Board of Education will meet with the Mayor to start the process of ensuring that the schools have adequate funding for new students arriving as a result of residential development," the Board of Education said.

Barberio promised to meet with the Parsippany school board to discuss their needs.