City Council approved the transfer of The Mint’s financial agreement with the city, including the 30-year Payment In Lieu of Taxes (PILOT), paving the way for a likely sale of the 225-unit building soon.
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The governing body adopted a resolution (AR-40-24) during its Jan. 8 regular meeting “approving the assignment of the financial agreement” between the city and Dornoch Rahway II Urban Renewal LLC to Extra Mint Urban Renewal LLC and authorizing the “execution of an assignment and assumption agreement.” The original 55-page financial agreement, including a 2020 amendment and a break down of PILOT payments and revenue, is available here.
Extra Mint Urban Renewal LLC (0600482307) incorporated on Dec. 22, according to the state Department of Treasury’s Division of Revenue and Enterprise Services.
City Council adopted a similar resolution in March 2016 for Meridia Water’s Edge adjacent to City Hall, a few months before the $30-million sale of the 108-unit complex closed later that year.
The Mint, at Main and Monroe streets, has been on the market since at least last year when units began leasing. An October 2022 report by Real Estate NJ — months before the second phase of the two-building project was completed — expected a projected sale “in the high $90 million to $100 million range.”
The 2023 municipal budget anticipates almost $3 million in PILOT revenue, including the first payment from The Mint of more than $112,000 for the first building (The Mint-South). The original PILOT application in 2014 estimated the $55-million development would generate a $360,000 payment in the first year and increase 3% annually.
The first phase of The Mint has been assessed for $9,895,900 since 2021, according to property records. Based on 2023 tax rates ($7.172 per $100 of assessed value), the property would generate almost $710,000 in property taxes under normal circumstances.
Almost a dozen lots previously comprised the lots that make up the The Mint property were assessed at a total of about $650,000, which if it were the same in 2023, would generate less than $50,000 in property taxes.
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