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Jets get $3.6M tax break on facility
Florham Park mayor: 'Modest concession'
Thursday, May 04, 2006
BY JOHN WIHBEY
Star-Ledger Staff
The Jets will be given an esti mated $3.6 million tax break over the first five years at their proposed new headquarters and training facility as part of a deal signed by the state, the team and Florham Park.
But borough officials say an an nual payment of $200,000 in lieu of taxes by the New Jersey Sports and Exposition Authority -- which will pay $20 million for the property where the professional football team will build -- is still a windfall for the municipality.
Under a regular tax scheme, the Jets' facility, estimated at $82.5 million in assessed value, would generate $932,000 in combined county, school and municipal taxes, according to documents submitted by Florham Park to the sports authority.
Mayor Frank Tinari said the $200,000 payment to Florham Park is only slightly less than what the borough's coffers might receive without the alternative payment plan. A "modest concession" was necessary in the bidding process to land the high-profile sports team, he said.
"It's not chump change. It's a nice payment," Tinari said yesterday. "Of course, it also helps jump- start the entire redevelopment project, which will bring in increased revenue."
The issue of the Jets-related tax payment -- called a Payment in Lieu of Taxes -- was debated publicly Tuesday night in Florham Park. More than 100 residents attended a special borough council meeting held to address concerns over a budget proposal that includes a $455 tax increase for the average assessed home.
Douglas Spier was one of several residents to call the PILOT ar rangement "token" and ask that area businesses pick up more of the tax burden.
"Personally, I think the town gave away the farm on this one," he said of the PILOT payment. "What do we actually realize on this other than bragging rights?"
The county and borough school district would not receive any Jets- related payments under the terms of the deal agreed to by the borough, state, developers and team.
Tinari said the entire redevelopment project, which includes a 200-room hotel, 600,000 square feet of office space and up to 550 hous ing units, will bring great financial benefits for the schools and area. The Jets facility, he noted, is just a small part of the overall project on the former Exxon headquarters site.
The Jets' 20-acre campus would include a 110,000-square-foot corporate building, a dome-covered field and three outdoor practice fields.
The 260-acre southern portion of the ExxonMobil property, where all of the development will take place, was assessed at $73 million last year, generating $1.2 million in taxes. The vacant 20-acre parcel that the Jets will build on currently generates a small fraction of those taxes.
The Gale Co. and Rockefeller Group Development Corp. will build all of the structures on the site.
Florham Park Schools Superintendent William Ronzitti said he supports the project and looks for ward to the revenue it could provide. "Naturally, if that property is developed, we all benefit," he said.
Sports authority officials have also said that the Jets facility in Florham Park will generate local jobs. More than $10 million in anticipated tax revenue would be paid to the state as Jets players and employees relocate from their current Long Island facility, state officials say.
The borough initially asked for a plan that would have generated a minimum of $1.6 million in taxes over the team's first five years in residence. That sum would have increased as the borough tax rate went up. In the fifth year, the sports authority would have paid roughly $500,000 under the proposal.
The sports authority will instead make a flat payment of $150,000 annually for five years to Florham Park's general coffers and $50,000 a year that must be dedicated to local athletic and recreational programs.
Sports authority spokesman Bernard Spigner said Florham Park officials agreed to be flexible on their initial request for a bigger PILOT payment. The four other towns in New Jersey that were finalists in vying for the Jets indi cated the same flexibility, he said.
"It was a competitive process, and towns wanted to be as competitive as possible," Spigner said.
John Wihbey covers Florham Park. He may be reached at jwih bey@starledger.com or (973) 539-7910.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
Jets get $3.6M tax break on facility
Florham Park mayor: 'Modest concession'
Thursday, May 04, 2006
BY JOHN WIHBEY
Star-Ledger Staff
The Jets will be given an esti mated $3.6 million tax break over the first five years at their proposed new headquarters and training facility as part of a deal signed by the state, the team and Florham Park.
But borough officials say an an nual payment of $200,000 in lieu of taxes by the New Jersey Sports and Exposition Authority -- which will pay $20 million for the property where the professional football team will build -- is still a windfall for the municipality.
Under a regular tax scheme, the Jets' facility, estimated at $82.5 million in assessed value, would generate $932,000 in combined county, school and municipal taxes, according to documents submitted by Florham Park to the sports authority.
Mayor Frank Tinari said the $200,000 payment to Florham Park is only slightly less than what the borough's coffers might receive without the alternative payment plan. A "modest concession" was necessary in the bidding process to land the high-profile sports team, he said.
"It's not chump change. It's a nice payment," Tinari said yesterday. "Of course, it also helps jump- start the entire redevelopment project, which will bring in increased revenue."
The issue of the Jets-related tax payment -- called a Payment in Lieu of Taxes -- was debated publicly Tuesday night in Florham Park. More than 100 residents attended a special borough council meeting held to address concerns over a budget proposal that includes a $455 tax increase for the average assessed home.
Douglas Spier was one of several residents to call the PILOT ar rangement "token" and ask that area businesses pick up more of the tax burden.
"Personally, I think the town gave away the farm on this one," he said of the PILOT payment. "What do we actually realize on this other than bragging rights?"
The county and borough school district would not receive any Jets- related payments under the terms of the deal agreed to by the borough, state, developers and team.
Tinari said the entire redevelopment project, which includes a 200-room hotel, 600,000 square feet of office space and up to 550 hous ing units, will bring great financial benefits for the schools and area. The Jets facility, he noted, is just a small part of the overall project on the former Exxon headquarters site.
The Jets' 20-acre campus would include a 110,000-square-foot corporate building, a dome-covered field and three outdoor practice fields.
The 260-acre southern portion of the ExxonMobil property, where all of the development will take place, was assessed at $73 million last year, generating $1.2 million in taxes. The vacant 20-acre parcel that the Jets will build on currently generates a small fraction of those taxes.
The Gale Co. and Rockefeller Group Development Corp. will build all of the structures on the site.
Florham Park Schools Superintendent William Ronzitti said he supports the project and looks for ward to the revenue it could provide. "Naturally, if that property is developed, we all benefit," he said.
Sports authority officials have also said that the Jets facility in Florham Park will generate local jobs. More than $10 million in anticipated tax revenue would be paid to the state as Jets players and employees relocate from their current Long Island facility, state officials say.
The borough initially asked for a plan that would have generated a minimum of $1.6 million in taxes over the team's first five years in residence. That sum would have increased as the borough tax rate went up. In the fifth year, the sports authority would have paid roughly $500,000 under the proposal.
The sports authority will instead make a flat payment of $150,000 annually for five years to Florham Park's general coffers and $50,000 a year that must be dedicated to local athletic and recreational programs.
Sports authority spokesman Bernard Spigner said Florham Park officials agreed to be flexible on their initial request for a bigger PILOT payment. The four other towns in New Jersey that were finalists in vying for the Jets indi cated the same flexibility, he said.
"It was a competitive process, and towns wanted to be as competitive as possible," Spigner said.
John Wihbey covers Florham Park. He may be reached at jwih bey@starledger.com or (973) 539-7910.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
posted by Jones Lang LaSalle NJ News Blog at 10:01 AM
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