West New York is considering two five-year tax breaks – The Hudson Reporter | Vette Leader

West New York is considering awarding two financial contracts to a redevelopment developer to support the construction of housing units in the city.

Mayor Gabriel Rodriguez and the Board of Commissioners presented two ordinances at the Nov. 22 meeting, each of which would grant a five-year tax exemption. The first ordinance would grant 6108 Fillmore, LLC exemption on the property at 6108 Fillmore Place.

The project includes the construction of three residential units at 6108 Fillmore Place, a former two-story single family home. The three-story apartment building with three residential units and ground-level parking is almost complete.

The city would grant the exemption under the state’s Five-Year Exemption and Reduction Act as well as city ordinances, including the Five Teardrop Tax Reduction Ordinance. These allow the city to enter into a tax treaty with an applicant for exemption and reduction of local property tax and payment of an amount in lieu of full property tax.

This applies as long as the property is located in an area previously designated by the city as in need of rehabilitation.

In 2020, the property generated $4,851 representing taxes on the land. Under the five-year tax exemption, 6108 Fillmore, LLC would have to pay the city full taxes on the land, estimated at $4,851 per year, and earn the city $24,256 for the three units over the five years.

These payments would be in addition to the tax replacement payments to the city under the agreement for the new improvements to the three-unit site. Upon completion of the project, taxes for the new improvements are estimated to be $21,949 annually for the three units based on the current tax rate.

No payments would be made for the new improvements for the first full year after substantial completion. In the second full year after completion, an amount equal to 20 percent of the taxes otherwise due on the new improvements will be paid to the city, estimated at $4,389 of the $21,949. In the third full year, an amount equal to 40 percent of the taxes otherwise due on the new improvements, estimated at $8,779, will be paid to the city.

In the fourth full year, an amount equal to 60 percent of the taxes otherwise due on the new improvements, estimated at $13,169, will be paid to the city. And in the fifth full year after completion, an amount equal to 80 percent of the taxes otherwise due on the new improvements, estimated at $17,599, will be paid to the city.

The project improvements will earn the city an estimated $43,939 in tax payments over five years. This is in addition to the $4,851 in full annual taxes on the land paid to the city, for a total of $24,256 over the five years. In total, the city is projected to earn $68,195 over that five-year period.

Upon expiration of the tax exemption, the project is expected to generate a tax payment of approximately $26,801. This includes the taxes for the country and is based on the current tax rate.

6108 Fillmore Place (left) and 6110 Fillmore Place (right) as of July 2018.

6110 Fillmore Place

The city is also considering an ordinance authorizing the same redevelopment developer for another project at 6110 Fillmore Place. This project also consists of three dwelling units in a nearly completed three storey apartment building with ground level parking, built on the site of a former parking lot and the numbers for this contract are identical to the first.

In 2020, the property generated $4,851 representing taxes on the land. Under the five-year tax exemption, 6108 Fillmore, LLC would have to pay the city full taxes on the land, estimated at $4,851 per year, and earn the city $24,256 for the three units over the five years.

These payments would be in addition to the tax replacement payments to the city under the agreement for the new improvements to the three-unit site. Upon completion of the project, taxes for the new improvements are estimated to be $21,949 annually for the three units based on the current tax rate.

No payments would be made for the new improvements for the first full year after substantial completion. In the second full year after completion, an amount equal to 20 percent of the taxes otherwise due on the new improvements will be paid to the city, estimated at $4,389 of the $21,949. In the third full year, an amount equal to 40 percent of the taxes otherwise due on the new improvements, estimated at $8,779, will be paid to the city.

In the fourth full year, an amount equal to 60 percent of the taxes otherwise due on the new improvements, estimated at US$13,169, will be paid to the city, and in the fifth full year after completion, an amount equal to 80 percent of the taxes otherwise due the city will be paid for the new improvements, estimated at $17,599.

The project improvements will earn the city an estimated $43,939 in tax payments over five years. This is in addition to the $4,851 in full annual taxes on the land paid to the city, for a total of $24,256 over the five years. In total, the city is projected to earn $68,195 over that five-year period.

Upon expiration of the tax exemption, the project is expected to generate a tax payment of approximately $26,801. This includes the taxes for the country and is based on the current tax rate.

In total, the city would benefit from the agreements in the amount of $136,390. Each project consists of three-story multi-family homes with a ground-floor garage and three units each, fewer than the redevelopment developer’s proposed four-story, 10-unit building that was originally shot down by the Zoning Board of Adjustment in May 2020.

Both regulations authorizing the five-year tax exemption will be heard and voted on in public and/or in person at the next meeting of the Board of Commissioners on December 14 at 6:30 p.m. Visit westnewyorknj.org for more information.

For updates on this and other stories, visit www.hudsonreporter.com and follow us on Twitter @hudson_reporter. Daniel Israel can be reached at disrael@hudsonreporter.com.

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