MORRISTOWN, NJ - During Morristown’s virtual town hall meeting, held on Tuesday, September 22 nd , Mayor Tim Dougherty and members of the town council approved a 30-year tax break for the M-Station Project.
Tawanna Cotton provided an overview of the project. M Station would consist of two buildings one will be a 352,600 square foot office space and the other a 29,530 square feet retail space. Financial Analyst, Robert Powell, laid out the project’s PILOT (payment in lieu of taxes) parameters. Stage 1 would see 12% of AGR (annual gross revenue) for 30 years. During Stage 2, there would be 11% of AGR for years 1-10 followed by an increase to a maximum of 14% depending on the performance.
Robert also emphasized how M Station would increase the total tax revenue by more than four- fold. Currently, the site generates $240,000 in tax revenue. Stage 1 is projected to generate $441,00 in revenue. Once the project is completed, PILOT revenue for Morristown is projected to be $1,030,000
Robert explained how the project would greatly benefit employment in Morristown. Bringing in approximately 1,4000 new permanent jobs and at least $83,000 in annual purchasing power.
Mayor Dougherty expressed his support for the agreement as it will provide much needed support to Morristown’s economy. While imperfect, Mayor Dougherty believes it to be the best decision for the town “it will certainly help contribute to our long-term fiscal stability.”
Councilman Robert Iannacone had concerns about the project’s phasing. While the first phase will be completed in a timely fashion, the ongoing construction caused by the prolonged second phase will interrupt travel through the center of town.
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