NJ Court Throws Monkey Wrench Into West Orange Redevelopment Plan

WEST ORANGE, NJ — A New Jersey appellate court panel has slammed the brakes on a plan to create an “area in need of redevelopment” on Executive Drive in West Orange.

Last year, township officials tried to pave the way for a new apartment building in the area. The plan would have allowed the developer to demolish two office buildings at 100 and 200 Executive Drive and put up a 425-unit complex in their place.

A 30-year payment in lieu of tax (PILOT) agreement was approved for the project, which could have meant a $100 million tax break for the project's developer over its lifetime, opponents say.

But earlier this month, an appellate court panel ruled that the town’s designation of the property as an area in need of redevelopment – a key component of the plan – doesn’t hold water.

West Orange Planning Board consultant Paul Grygiel previously testified that the vacancy rate at the office park was nearly double that of other nearby spaces, and that the existing buildings are “poorly placed,” making them difficult to upgrade. Grygiel also said that updating the outdated mechanical, electrical and plumbing systems would take a “significant amount of investment” – all reasons why the area in need of redevelopment designation was needed.

However, the appellate court disagreed, ruling that these factors aren’t enough to justify the designation, and that officials failed to show the area is currently “detrimental to the safety, health, morals or welfare of the community.”

Read the full court opinion here.

The court’s decision got a big thumbs up from West Orange resident Kevin Malanga, an attorney who filed a lawsuit and appeal against the redevelopment designation at his own expense.

“I saw tax rates going up and neighbors financially hurting and unable to age in place because of tax breaks handed out to wealthy developers,” Malanga said, explaining why he filed the suit.

“I’m in favor of upgrading and renovating properties within our township,” Malanga added. “But well-capitalized owners should pay for their own renovations, just like any taxpayer. They should not be given tax breaks to make improvements on their own property. No homeowner gets these breaks, and neither should wealthy developers of areas that are obviously not blighted.”

Joe Krakoviak, the only West Orange Town Council member to vote against the plan, also praised the court’s decision.

“This is a win for all taxpayers in West Orange,” Krakoviak said. “The 30-year property tax abatement granted to this project would cut its revenues to the town by 50 percent, with taxpayers left holding the empty bag by paying higher taxes. No one believes this developer won’t develop its property without incentives.”

“This is purely unnecessary corporate welfare that is certainly not in the best interests of taxpayers and the town’s finances,” Krakoviak added.

• See related article: West Orange Councilwoman: Here's Why I Voted Yes On PILOT
• See related article: West Orange Mayor Discusses Development, 'Burden Of Taxes'

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