Apartment Complex Could Bring Tax Dollars, Economist Says

A proposed apartment complex near the Route 17 train station on Island Road may actually generate more tax money for Ramsey and its public schools than it would cost the borough, according to economic analyst Richard Reading.

Reading testified on behalf of Russo Development during a special meeting of the Ramsey Board of Adjustment Wednesday after residents questioned the costs that multi-family housing could have on schools if many children move in.

The complex would cost the borough about $118,000 per year in municipal services, but generate about $168,000 in tax revenue, according to Reading. It would also cost local schools an additional $151,000 per year, but bring in school taxes of about $520,000 per year, he said.

"It may actually be a benefit to the Ramsey Schools," Reading said.

According to Reading, who said he used industry standard data from Rutgers, apartments near train stations in New Jersey tend to attract young professionals more than families. Those apartments are, on average, home to two children per 100 units, he said.

"It's not a product that is sought out by families," Reading said.

Reading estimated that this complex would have about 10 children, the average between the expected number for a complex this size near a train station — four — and a complex this size not near a train station — 18.

Board member Abbas Safai called Reading's figures "unbelievable."

"We have a good school system and everybody tries to get in," Safai said.

Reading also noted that the number of students attending borough schools has dropped over the past few years, from about 3,100 in the 2008-09 school year. School officials are anticipating they will have fewer than 3,000 students next year.

"The declines we've seen in the school district will become much more evident in the next few years," Reading said.

The reason for that is changing demographics, he said. Young professionals are prefering rental housing because of high college debt, a poor job market and a lack of job security — the same reasons they're also waiting longer to have children and having fewer of them.

Questioning of Reading's testimony was cut short because it was past 11 p.m. He will attend the board's next meeting on June 19 in order to take questions from the board and members of the public.

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