Non-Profits Throw Red Bank a Bone

A funny thing happened when Mayor Pat Menna announced his plans to seek assistance from the state legislature to help Red Bank better shoulder the burden of tax-exempt properties in town: a few wrote the borough a check.

At Wednesday’s , Menna said three non-profits have stepped forward and offered financial assistance to the borough. Among the three organizations, two provided payments of nearly $10,000 without being pressured or even asked to, Menna said.

HABcore Inc., which provides housing for the homeless and has multiple properties in Red Bank, cut a check for $9,900 to the borough. Menna said the gesture was made by an organization that understands that the borough resources it uses regularly don’t come free and felt obligated to chip in. Menna did not identify the other two non-profits that made contributions.

Clarification: HABcore Executive Director Steve Heisman reached out to Patch Thursday morning to refute the insinuation made by borough council that the payment made to Red Bank was new. In an email, Heisman said HABcore has had a PILOT agreement with Red Bank for more than 20 years and pays an annual rate for its two properties that increases over time.

Whether the checks were written out of the goodness of the non-profit organizations’ hearts or are being used as votes to stave off threats of alternative forms of taxation isn’t clear, though Menna said doesn’t believe the ulterior motive.

It’s an encouraging step in the right direction, Menna said, considering the in Red Bank.

Menna has proposed changes to the state constitution that would allow the borough to require non-profits buying property to make payments in lieu of taxes, or PILOTs, instead of traditional property taxes. Menna has estimated that up to 25 percent of the borough’s property is owned by non-profits, though the number is likely less than 20 percent.

Menna pointed to the Wesleyan Arms senior apartment high rise as an example of how PILOTs can work. Though the organization that owns the building is tax exempt, it pays an annual rate based on how many of its apartments are occupied during the year. How a system like that could be extended to other non-profits and tax exempts remains to be seen.

The hope, Menna said, is that other organizations consider making voluntary contributions, though he said the borough isn’t asking. Religious organizations like St. James Church and Tower Hill Church, both of which operate schools – the former on a much larger scale – could help lessen the borough’s tax struggles.

Ultimately, Menna said non-profit organizations contributing to the budget makes Red Bank more affordable for those living here or looking to locate here. When non-profits take more and more land off of the books, everyone else has to step up and fill the void. For seniors, and those on fixed incomes, Menna said, the rising cost of living in Red Bank is very real fallout.

Menna plans on meeting with state Sen. Jen Beck, R-12, to discuss the issue in more depth, he said.