NUTLEY, NJ - Ordinances were approved to create a financial agreement for Phase IIA of On3, formerly known as Hoffman-La Roche, during the Tuesday, March 5 Board of Commissioners public meeting.
Public hearings were held for Ordinances 3416 and 3417. The ordinances introduced by Revenue and Finance Commissioner Thomas J. Evans, are pilot agreements and authorize the execution of a financial agreement and grant tax exemptions for 30 years per pilot terms with PB - 100 Metro Urban Renewal, LLC and PB – 200 Metro Urban Renewal, LLC, respectively. Both ordinances passed unanimously.
Ralph Lauren will be occupying 100 Metro Blvd.; 200 Metro Blvd. is still vacant. A parking garage will be built near 100 Metro Blvd. and 200 Metro Blvd.
The township was able to secure full local taxation based upon the taxes received in 2018; an agreement that was made with developer Prism Capital Partners. The financing agreement has an escalator in it at a minimum of two percent as well as an administrative fee. Evans specified that the negotiation was the universal position of the Board of Commissioners and did not want to receive all the credit.
“The full amount is the full municipal and school tax. We also were able to negotiate that part of the county savings; part of the 95 percent of the savings of the county the township would be able to retain that as well,” said Evans.
“We have to secure the full benefit for the residents of the town and make sure that this site remains a very competitive and very very attractive. So with the unanimous commitment of the board …we were able to move forward because in negotiating this because it was the posture of the entire Board of Commissioners and there was no leeway on that,” he said.
Evans believes with Ralph Lauren moving, in the opportunity for jobs for residents on the location will be available.
Nutley's redevelopment attorney for the On3 site, Dean J. Donatelli of Inglesino, Webster, Wyciskala & Taylor LLC spoke briefly. Donatelli said Prism was a very hard negotiator. “The commissioners took a very hard stance and got the best deal possible for the township,” he said.
According to Donatelli, the unique thing about the agreement is generally they don’t include the school share. Also the two percent increase each year is unique.
Eugene R. Diaz, principal partner of Prism Capital Partners, said the most important part for Prism and for the tenants occupying this campus is certainty. The pilot program provides 30 years of certainty and what those numbers will be. He believes this will grab and attract more great companies to the On3 campus.
Edwin H. Cohen, principal partner of Prism Capital Partners, said, “The vision that we had for this campus when we decided to move forward on it, is happening and is happening faster than we thought it would be happening and that’s because of all of the cooperation of the [commissioners].”
Mayor and Public Works Commissioner Joseph P. Scarpelli said, “This is a win, win, win. Win for the taxpayers, win for the municipality, win for the school district and also a win for the developer and offering to attract a quality tenant like they did with Ralph Lauren.”
Public Safety Commissioner Alphonse Petracco said with Modern Meadow there and other businesses that opened that the businesses already in that area are noticing a positive difference.
The next Board of Commissioners meeting is scheduled for 7 p.m. Tuesday, March 19.
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