A deal inked in 2008 for a “town center” project in
Washington Township that has faced a series of delays will again come before
Township Council Wednesday. And if the governing body again rejects the tax
agreement for the plan, the township business administrator warned, there could
be “mayhem.”
The 35-acre Washington Square redevelopment project calls
for 330 rental apartment units, 100 for-sale townhomes, and about 170,000
square feet of retail and office space. It was last derailed in July 2013, when
a majority of the five-member council voted against a payment-in-lieu-of-taxes
(PILOT) agreement for the site – a swath of mostly open land on Hurfville-Cross
Keys Road, near Fries Mill Road.
The redeveloper – Washington Square Urban Renewal – sued
the town soon after, claiming in part that the municipality failed to live up
to its 2008 redevelopment agreement and also challenging the municipality's
affordable housing obligations.
Part of the agreement said that the redeveloper “may
require a payment in lieu of taxation or a tax abatement” in order to make the
project feasible, said Township Business Administrator Robert Smith.
In the year since, Washington Township has spent about
$150,000 in connection with the lawsuit, Smith said. It has hired an economics
expert to advise the municipality and consulted with its attorneys, all coming
to one conclusion: “A judge would absolutely grant a PILOT to the redeveloper,”
Smith said Tuesday.
The actions by council Wednesday would affirm or thwart
the planned settlement. The proposed PILOT now allows the township's share of
the project's gross revenues to be 12 percent. Last year's proposal called for
the township to collect 10 percent. The townhomes are also now included in the
calculations.
But one day before the vote, some council members
expressed dismay at the lack of specifics provided.
“Hours before we’re supposed to vote on it, we still
haven’t received the paperwork," Council President Giancarlo D'Orazio, a
Republican, said Tuesday. Last year, he voted against the tax agreement. “In my
opinion, this is the biggest vote I’m going to exercise in my four years."
Council members were provided Friday with a copy of the
new financial agreement, but key elements -- namely the amount expected to be
collected under the PILOT -- were not included. Two weeks ago, they were
informed of the nearing settlement during a closed session.
Councilman Daniel Morley, a Republican who has long
supported the project as a means to "kick start" new development in
town, called the process "disconcerting." Morley said council was no
longer considering the PILOT on its own terms, but under pressure to approve
the settlement -- or face costly legal ramifications.
Though he was unable to provide the actual projected
collections during a phone interview Tuesday, Smith said the PILOT, over 30
years, would generate $47 million more for the township than if the project was
built and taxed regularly. He said a finalized agreement would be provided to
council members before the meeting Wednesday night.
Proponents of the project in the past have pointed to the
prospect of new jobs and added revenue for the township's coffers. Democratic
Councilwoman Michelle Martin, along with Morley, voted in favor of the
agreement last year.
But they were defeated by the votes of D’Orazio,
Democratic Council Vice President Scott Newman and Republican Councilman Chris
Del Borrello. Democratic Mayor Barbara Wallace also raised issues with the
PILOT.
Opposition in part came from officials who were not
convinced the redeveloper demonstrated the need for a PILOT. Another concern
centered on the effect added families would have on the school district, which
is not a beneficiary of PILOT revenue.
Smith said officials estimate the apartments and
townhomes would add 60 to 70 children between all grades, noting that he has
confidence that council would “negotiate in good faith with the school board”
to compensate the district for additional students.
Challenges, it appears, may have little result.
“Truthfully," Smith said, "there is nothing
that this current council or mayor can do can do to change those original
terms."
Source: Philly.com
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