A proposed senior housing development would pay about $30,000 annually under a Payment In Lieu Of Taxes (PILOT) agreement adopted by City Council.
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The governing body approved a resolution (AR-190-23) of “need for the construction of a 42-unit residential senior apartment housing project and approval of a PILOT [Payment In Lieu Of Taxes] agreement.”
The legislation, adopted at the governing body’s Sept. 11 meeting, also includes revenue projections and estimates of the PILOT. “The city finds and determines that the 42-unit apartment project…proposed meets or will meet an existing housing need,” according to the resolution.
The 15-year PILOT runs from 2026 to 2041 and be 6.28 percent of rents. An operating cash flow statement estimates the PILOT at $28,778 in 2026, increasing every year and reaching $38.782 in 2041.
Revenue from PILOTs in the 2023 municipal budget is anticipated to total $2.725 million, including $60,000 from affordable or senior housing developments: $29,000, Meyers Senior Residence across the street; $25,000, Rosegate at Heritage Village on East Hazelwood Avenue, and $16,000, The Willows on Central Avenue.
The Esterbrook Avenue properties first were examined in 2021 to determine whether they qualified for redevelopment under state law and eventually a redevelopment plan was conceived for the area, which proposed 60 units of senior housing.
A revised plan presented to the Redevelopment Agency in August called for a 42-unit complex. The Redevelopment Agency designated The Michaels Organization as redeveloper.
City Council in June approved a $2.66-million bond ordinance to acquire the four properties, which would include “real estate transaction and environmental expenses, and all work, materials necessary.”
Four homes have been razed on the 1-acre site. The properties consist of Lots 20, 21, 22, 23 within Block 151 and would have an address of 1430 Esterbrook Ave. The cost of demolition eventually will be included in the sale, Redevelopment Director Robert Landolfi said during a brief interview after the Sept. 20 Redevelopment Agency meeting.
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