The Franklin Reporter & Advocate Eight Villages, One Community
A long-term tax abatement plan for a township low-income senior citizen apartment building was approved by the Township Council recently.
The Payment in Lieu of Taxes, or PILOT, program was deemed necessary by the Council to aid in the rehabilitation of the Wilentz Senior Residence at the Wilf Campus for Senior Living on DeMott Lane.
The Council approved on second reading the PILOT ordinance at its November 28 meeting.
Under the PILOT program Wilentz Urban Renewal, which is acquiring the building, will pay the Township a set fee instead of traditional property taxes. The Township is entitled to keep 95 percent of the payment, with 5 percent of the payment going to Somerset County.
The PILOT’s term will either be for 35 years from the effective date of the ordinance or 30 years from the annual service charge start date for the project, whichever is earlier, according to the ordinance.
The payment rate had not been set as of the November 28 meeting, Township Manager Robert Vornlocker has said. That will be done after the property is assessed, he said.
PILOTS are generally used by towns to encourage development or redevelopment of projects that would nmot otherwise be financial viable for developers.
The Wilentz apartment building will remain an affordable-housing building after the renovations, according to the ordinance.
