PATERSON, NJ – City officials are considering a tax settlement that would reduce by more than 33-percent the value of an 18-unit apartment building in the 3rd Ward.

Teper Realty Company, the owner of the building at 214-222 Vreeland Avenue, had filed an appeal in state Tax Court seeing to have its assessment reduced dating back to 2007. City officials have reached a tentative agreement with Teper to lower the building’s assessment from $1,531,600 to $1 million. As part of the settlement, Paterson would owe the company a tax refund of more than $67,000 covering six years.

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After a brief discussion at their workshop meeting on January 8, city council members asked for a more complete explanation of the settlement. Councilman William McKoy, who represents the 3rd Ward, said the building was in a good location where it should not be difficult to rent out the apartments. He wondered why the city would be willing to lower the taxes on a property that he said seems capable of generating significant revenue for its owner.

The council decided to have its real estate staff come to the February 5 agenda meeting to answer questions about the proposed settlement.