WOOLWICH TWP. – An ordinance approving a Long Term Tax Exemption plan for 2024 Oak Grove Road Woolwich, LLD was approved by the Woolwich Township Committee on Dec. 2.
The financial agreement, referred to as a PILOT (Payment in Lieu Of Taxes) agreement is a financial assistance program between the developer and the municipality. Municipalities have the right to make an agreement to fit their needs.
According to Woolwich Township Mayor Natalie Matthias, in the approved plan, the township will receive $13,072,221.17 over a 30 year period. Under conventional taxation the township would have received $5,764,549.40 in revenue.
With this approval, 2024 Oak Grove Woolwich and the state department of transportation will be required to widen Route 322 westbound in front of their building, as well as a small section of Oak Grove Road alongside their property.
“Additionally,” said Matthais, “the township will benefit from the creations of approximately 60 permanent new jobs and an additional 50 to 80 jobs during construction.”
According to https://www.eisneramper.com, a website suggested to me by Matthias for information, a PILOT agreement will result in substantial lessening of tax burdens for developers, and municipalities will benefit from improving their communities.
The program is a tax incentive and tool utilized by developers in New Jersey who are structured as Urban Renewal Entities working in areas in need of redevelopment or rehabilitation to pay a calculated tax fee based on a low percent of revenue or a set percentage of construction costs, rather than the traditional property tax bill, to ultimately reduce their overall tax burden.
By Karen E. Viereck, Editor/Publisher
One Response
I’m curious; will the 60 permanent jobs quoted in the article be Woolwich residents? If not, I’m curious as to how that’s beneficial to our township. I’ll presume that the temporary construction jobs will be employees from out of the area, if not out of state, similar to all of the other warehouses on Route 322.