PARSIPPANY — Developers behind the proposed second phase of the PARQ project are expected to save approximately $110 million under a 30-year Payment In Lieu of Taxes (PILOT) agreement that will be considered by the Parsippany-Troy Hills Township Council on Tuesday, December 16, during its 7:00 p.m. meeting at Parsippany Town Hall, 1001 Parsippany Boulevard.
Under the proposed agreement, 95 percent of the PILOT payment would go directly to the Township, while 5 percent would be remitted to Morris County. The Parsippany-Troy Hills School District, Local Fire Departments and Library would receive no direct revenue from the development for the full 30-year term.
The ordinance was approved by a 4–1 vote, with Councilman Matt McGraft casting the lone vote against the tax-exemption agreement.
The ordinance will return to the Council for a second reading and public hearing on Tuesday, December 16, at 7:00 p.m., at Parsippany Town Hall, 1001 Parsippany Boulevard.
How the 30-Year PILOT Works
A PILOT agreement allows a developer to make a negotiated annual payment instead of paying full property taxes. While municipalities often support PILOTs because they retain the majority of the revenue, these agreements bypass the traditional tax structure, particularly for schools.
The municipal budget is the benefactor of a pilot agreement not the township’s budgets. All the other budgets get zero. Except a small portion from the land taxes.
In the case of PARQ, the 30-year term would lock in the agreement through multiple Township Councils and Boards of Education, limiting future flexibility even as service demands increase.
Impact on Schools and Local Taxpayers
The PARQ project proposes more than 1,100 apartment units, which are expected to introduce additional students into the public school system. Because PILOT properties do not pay school taxes, the cost of educating those students would fall entirely on existing taxpayers.
Critics argue this effectively creates a long-term subsidy for the developer, while residents and small businesses continue paying full property taxes. Over time, this structure can result in:
- Increased school taxes for homeowners
- Greater pressure on school and municipal budgets
- Reduced funding flexibility for classrooms, staffing, and facilities
Traffic and Infrastructure Concerns
Beyond financial impacts, the scale of the development raises serious traffic and infrastructure questions.
The PARQ development—located on the former Lanidex East property—already includes 275 apartments constructed by PARQ and 75 townhomes built by Ryan Homes. The newly proposed PILOT agreement seeks approval for:
- 1,102 additional apartments, including
- 20% reserved for affordable housing (To be built in a separate building within the complex)
- 18,200 square feet of new retail space, including future restaurants
- An additional 110 townhomes to be built by Ryan Homes (not included in the PILOT financing structure)
If approved on second reading, the expansion would bring the total unit count on the property to well over 1,500 residential units.
The additional 1,100 apartments are projected to generate approximately 1,650 additional vehicles using Parsippany Road, a one-lane roadway that is already heavily congested during peak hours.
Residents have raised concerns about:
- Longer commute times and traffic backups
- Emergency vehicle access
- Pedestrian and cyclist safety
- Accelerated wear on local roads
Without significant roadway or traffic-management improvements, critics warn the project could worsen daily congestion for nearby neighborhoods.
A Decision with Long-Term Consequences
Supporters of PILOT agreements point to predictable municipal revenue and development incentives. Opponents counter that 30-year PILOTs shift long-term costs onto residents and schools, while insulating developers from paying their full share.
Tuesday night’s hearing provides residents an opportunity to comment on whether the projected municipal revenue justifies the long-term impacts on schools, taxpayers, and local infrastructure.
The Township Council’s decision will shape Parsippany’s fiscal and residential landscape for decades.
