NUTLEY, NJ - The Nutley Board of Commissioners approved the Phase 2A Redevelopment and Financial Agreements for the On3 project on the Nutley-Clifton border at the March 5 meeting.
The Financial Agreements provide for Nutley to receive revenue equal to the full taxation on 100 and 200 Metro Boulevard for both the municipal and school portions, along with a portion of the revenue the county would have received under full taxation. These financial agreements are unique in comparison to other PILOTS in the state as they share the revenues in the same proportion as regular property tax collections with the school district.
Phase 2A subdivides a portion of the former Roche property on the Nutley side into three separate parcels for each of the existing buildings (100 Metro Boulevard, 200 Metro Boulevard, and 111 Ideation Way and creates an additional lot (Lot V). Lot V will contain a parking deck and courtyard to service both 100 and 200 Metro Boulevard.
The parking deck was approved by the Township of Nutley Planning Board in the Fall of 2018.
The signing of the Redevelopment Agreement also paves the way for the occupancy of 100 Metro Boulevard by the Ralph Lauren Corporation by the end of 2019. Ralph Lauren signed a lease with Prism on July 3, 2018 bolstered by a Grow NJ grant of $33.1 million in tax credits which was approved by the New Jersey Economic Development Authority (NJEDA). The company, headquartered in New York City, plans to retain 518 jobs in the state and create an additional 250 jobs.
“Signing these agreements is another positive step forward in the transformation and redevelopment of ON3”, said Mayor Scarpelli. “The entire Board of Commissioners are working hard to ensure that the re-development of ON3 will ultimately replace as much as possible our lost ratables caused by Roche’s departure.”
The agreement calls for an annual 2% increase in the PILOT payment over the next 30 years.Also negotiated through the Financial Agreement is the requirement for Prism to drop their tax appeals.
This eliminates a potential financial liability for the Township that has been lingering for years.“This PILOT should become a model in the state. The Board of Commissioners have assured that the taxpayers remain whole by ensuring the local school district shares in their proportional fair share of the generated revenue. Also, by eliminating the tax appeals the Commissioners have protected the taxpayers from millions of dollars in threatened exposure,” concluded Scarpelli.
To follow all of the developments On3, visit TAPinto Nutley's On3 section.
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