Mayor Prunty Statement on Funding Flood Mitigation & Infrastructure Projects
Two-and-a-half years ago, the Township Committee unanimously agreed to an affordable housing settlement that committed the Township to two Payment in Lieu of Taxes (PILOT) Agreements, including for the 750 Walnut Avenue project. That prior commitment leaves open many important decisions, however, and as Mayor I intend to work with the Township Committee to make sure the PILOT agreements work for Cranford.
First, I am determined to ensure that the Township’s 2020 agreement to a PILOT for 750 Walnut Avenue provide a net benefit for Cranford. The current Township Committee and I are insisting that the 750 Walnut Project, including its PILOT, result in net positive benefit to all Cranford taxpayers:
The 15-acre commercial portion will not receive a PILOT.
The 15-acre commercial portion will continue to pay conventional taxes; and
The 15-acre commercial portion is expected to generate almost the same amount of property taxes as the entire 30-acre parcel did when it was fully occupied.
In addition, the Township Committee and I are insisting that the PILOT apply only to the new residential buildings; Hartz must continue to pay conventional property taxes on the value of the land. By structuring the PILOT this way, the completed 750 Walnut Project will generate more property taxes than it did when it was a fully occupied commercial property. This means the school district will receive more property taxes from 750 Walnut Avenue after this project than it ever did before this project. This is significantly better for Cranford’s residents than the 2018 PILOT on the Birchwood Avenue Project that entirely eliminated property taxes on the property and its buildings.
Second, if we must approve a PILOT, I am determined to make the best of the situation. Last week, I proposed that the Township leverage the PILOT payments for a once-in-a-generation infrastructure project. In a typical year, the Township is able to invest only $1 to 2 million in stormwater projects. By bonding the PILOT payments, we are able to invest 10 times as much without increasing municipal property taxes. I am proposing the PILOT payments be dedicated to infrastructure investments such as:
Restoration of the Riverside Drive dike. Storms and use by runners, walkers and bikers have caused erosion in several locations;
Completing the Southside Stormwater Project;
Northeast Quadrant Project. Phase 5 of the original plan to address flooding on Balmiere Parkway, Springfield Avenue and Willow Street;
Stormwater upgrades along Lincoln Ave., from Sherman Park to High Street;
a Casino Brook project to address flash flooding in the area from Birchwood Avenue and Wadsworth Terrace to Casino Avenue to Riverside Drive;
an investment in permeable surfaces for the downtown and municipal parking lots; and
an opportunity to collaborate with the Board of Education and local sports clubs to incorporate stormwater collection and storage into our existing athletic fields.
Two years ago the Township locked itself into an affordable housing settlement that I believe made the most sense for our community. The opportunity exists to improve upon that plan even further by making sure these two PILOT agreements meet Cranford’s needs first. I fully understand the importance and necessity for a regional flood control project. But such a project is 10-years or more away. We cannot sit on the sidelines for a decade. There will be more storms, more frequent storms, and stronger storms. The need is now and we have an opportunity to fund projects that will make a difference. Accordingly, I plan on supporting the affordable housing plan, seeing through to the end the commitment made two years ago, and using these funds to re-invest for our residents’ future.
-Mayor Kathleen Miller Prunty
