The Board of Education will receive 44 percent of payment in lieu of taxes from Washington Square Project; interim agreement in place for affordable housing sites to be evaluated
Town council adopted an ordinance on second reading at last week’s meeting to provide the Board of Education with 44 percent of revenue generated from payment in lieu of taxes involving the Washington Square Project. Council also passed a resolution authorizing an interim agreement permitting the developer of Pinnacle Place, a 138-unit redevelopment project, to evaluate other sites within the township to construct affordable housing units.
Council members voted unanimously, 3–0, with Councilwoman Angela Donato and Councilman Joe Perry recused, to adopt the ordinance that would distribute the percentage of revenue by the Washington Square Project to the Board of Education. Typically, schools are excluded in revenue generated by PILOT programs, however council and the BOE came to a financial agreement after multiple years of collaboration to incorporate the BOE into the shared funding.
The ordinance states at the March 4, 2015, meeting, “the township professionals and members of the township council expressed the view that they wanted to provide revenues from the modified financial agreement to the BOE to ensure that any students generated from the residential units in the Washington Square Project could be educated without an undue burden upon the BOE.”
Within the agreement, the redeveloper pays a service charge based upon 12 percent of gross revenues the developer receives from the project. The developer provides the municipality the entire amount of revenue generated from PILOT, excluding 5 percent that is given to the county. With the passed ordinance, the BOE will receive 44 percent of revenue given to the municipality to provide education to school-aged children who may inhabit the residential properties being built in the development.
“On behalf of the prior and current Boards of Education and administration, I would like to thank the past and present members of council, and both mayors, for their efforts in reaching such a positive resolution,” BOE President Ginny Murphy said. “When over 75 percent of the taxable properties in Washington Township are residential, the community cannot afford to give developers a pass on school taxes. This is an example of good government at work, where the focus is on what is best for the township community as a whole.”
The project is expected to include more than 330 rental apartments and stacked townhomes, 70,000 square feet of retail space, 100,000 square feet of office space, a three-acre central park and 37 percent open space.
According to the ordinance, the township will distribute the funds to the BOE within 30 business days after the collection of the annual service charge, PILOT, by the township.
Council also approved a resolution at the meeting to authorize an interim agreement permitting the developer of Pinnacle Place, part of the Delsea Drive Redevelopment Plan, to evaluate other sites within the township to construct affordable housing units. In exchange, the developer can apply for, and receive, up to 34 building permits for these units.
The township adopted the Delsea Drive Redevelopment Plan in November 2013, which required an affordable housing obligation for all developments constructed in the redevelopment area. Pinnacle Land Holdings, LLC obtained approval from the Planning Board in 2015 to construct 138-townhome lots, two open space lots and one commercial lot on the property. According to the resolution, one of the terms of the agreement is Pinnacle Place will deliver 20 percent affordable housing set-aside either on- or off-site.
According to township Solicitor Stuart Platt, the developer and the township have a dispute as to whether there has to be affordable housing constructed, or if a fee in place of those residential units is acceptable.
“The developer believes it’s at their choice and the township believes it’s at their choice to be determined,” Platt said. “The purpose of this resolution is to avoid litigation at this time, but to also address affordable housing requirements by the state.”
If the developer is unable to locate another site for the affordable housing units by the time it has reached the limit of 34 building permits, it will have to return to the township for the parties to address how they move forward, Platt said.
