Jack Morris, the wily Middlesex County über-developer, has worked out a revised agreement for a large residential and commercial project he is doing in Somerville -- because of changed market conditions. Details appear in today's Ledger.
As I suggested last Tuesday, Plainfield taxpayers would do well to keep an eye on this deal, as continuing deterioration of the market may lead developers of Plainfield projects to make similar proposals.
I was somewhat mistaken in suggesting that Morris was asking to renegotiate the PILOT (payment in lieu of taxes) with the town. The initial agreement called for straight taxes and no PILOT. Now, Morris wants a PILOT.
The changed agreement, as one Somerville Council member admits --
Somerville Councilman Robert Wilson said: "It's fair to say that it is giving JSM a concession -- the project as originally proposed did not call for a PILOT (payment in lieu of taxes). The reasons for the concession is that there is a different financial picture today with respect to construction costs, rent and taxes.
PILOTs can be hazardous to a town's fiscal situation if the residential portion being covered comes to house families with children who use the school system. PILOTs, in their nature, do not include any payments to the host community's schools, meaning the district would have to pass the extra burden along to the other taxpayers."In return for the PILOT, we have obtained a number of concessions as well, or at least benefits for the borough," Wilson said.
Star-Ledger - 7/22/2007: "Sagging market leads to Somerville changes"
Plainfield Today - 7/17/2007: "Development: Plainfield taxpayers should read the fine print"
View today's CLIPS here. Not getting your own CLIPS email daily? Click here to subscribe.
http://plainfieldtoday.blogspot.com/
Posts
0 comments:
Post a Comment