The city in 1978 granted the property owner a 40-year tax abatement. The current owners are seeking an 18-month extension.
BAYONNE — The City Council on Wednesday will vote to extend a 40-year tax abatement that was originally granted to a privately-owned Section 8 housing complex in the late 1970’s.
The company that owns the Plattykill Manor Apartment complex at Avenue E and 11th Street is requesting an 18-month extension on a payment in lieu of taxes agreement that was inked with the city in 1978.
The extension represents an unusual scenario for the council. Typically, the governing body votes on PILOTs for new development meant to stir economic activity in the city.
But some council members say this is a vote to protect the residents in the complex — ensuring that the management company would make improvements to the building.
“The place was in a downward spiral as far as the upkeep,” Council President Sharon Ashe-Nadrowski said at an October meeting when the resolution was initially tabled. “Residents are saying they’re putting some money back in and fixing the infrastructure there.”
The building comprises 147 units; at least 144 of those are under a Section 8 housing approval contract with the office of Housing and Urban Development (HUD).
“My main concern is that the apartments are kept up to par and these people are in livable conditions,” Ashe-Nadrowski added.
The city signed the initial PILOT agreement in 1978. The property was sold in 2014 to Plattykill Urban Renewal, LLC, a Newark-base entity owned and managed by Radiant Property Management, LLC. A call to Radiant Property Management was not returned.
Some members of the council also signaled that the main issue at stake is whether the company will keep the building affordable or whether it will shift to market rate.
Third Ward Councilman Gary La Pelusa Sr., however, warned that the council could set a bad precedent if it approves the extension request.
“I just think you’re starting a dangerous trend by extending it, even for 18 months,” he said. “And what’s to say at the end of the 18 months they don’t come back with another extension.”
The council during its October meeting voted 4-1 to table the resolution in order to “do further research.” Councilman-at-large Juan Perez voted no.
“The question for the council becomes, is this something that’s necessary to help the tenants, or is it something that’s just going to make the operating entity more money,” one source with knowledge of the agreement said.
A freedom of information act request for the contract, which is public record, was not yet received at the time of publication.
The property currently pays $180,000 annually in PILOT revenue to the city. Under regular taxation, the property would be contributing $375,958.
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