PARSIPPANY — The Parsippany-Troy Hills Township Council approved a 30-year Payment In Lieu Of Taxes (PILOT) agreement for the PARQ development Tuesday night, a deal expected to save the developer more than $117 million in property taxes.
The ordinance passed by a 4–1 vote at the December 16 council meeting, with Council President Paul Carifi, outgoing Vice President Frank Neglia, outgoing Councilman Justin Musella, and Democrat Judy Hernandez voting in favor. Republican Councilman Matt McGrath cast the lone dissenting vote.
More than 100 residents attended the meeting, with the majority of speakers voicing opposition to the PILOT, calling it an unnecessary incentive for developers given Parsippany’s prime location in North Jersey.
Council President Carifi defended the vote by citing the township’s obligation to meet the state’s December 31 affordable housing deadline.
“Failure to meet the deadline would expose Parsippany to builder’s remedy lawsuits,” Carifi said, noting that such lawsuits allow courts to approve large-scale developments without municipal approval.
Town officials stated that at least eight developers were prepared to file builder’s remedy lawsuits against Parsippany as early as January 1 if the deadline was not met.
Concentrating Development at PARQ
Town leaders argued that approving the PILOT allows Parsippany to retain some control over development by consolidating its remaining fourth-round affordable housing obligation into one location — the PARQ development off Parsippany Road.
The site, formerly the Lanidex office park, is physically separated from the rest of the township by Interstates 287 and 80. Officials described the area as relatively isolated and said concentrating development there would have the least overall traffic impact in an already congested municipality, despite projections estimating 1,500 additional vehicles on Parsippany Road, a one-lane county roadway.
Under the PILOT agreement, 95 percent of the payment flows to the municipal budget, while 5 percent goes to Morris County. The Parsippany-Troy Hills School District, local fire departments, and the library would receive no direct revenue from the development for the duration of the 30-year agreement, aside from minimal land taxes.
A PILOT allows a developer to make negotiated annual payments instead of paying full property taxes. While municipalities retain most of the revenue, the agreements bypass the traditional tax structure — particularly school funding.
Musella Reverses Position
Councilman Justin Musella, who previously led community opposition to PILOT agreements and made them a centerpiece of his unsuccessful mayoral campaign, voted in favor of the PARQ agreement — a move that disappointed many of his supporters.
In December 2023, Musella helped shut down a council meeting at Town Hall due to crowd size, forcing the meeting to relocate to the Parsippany PAL building, where over 800 residents gathered in opposition to PILOTs. That year, Musella cast the lone “no” vote.
Acknowledging the irony, Musella distinguished PARQ from prior developments he opposed.
“This is much different — unlike the ones I opposed, which were discretionary,” Musella said. “This is about meeting our housing obligation in the least-disruptive way possible. If there were a better path, I would be the first to take it.”
Project Details and Housing Costs
The PARQ project broke ground in 2022. The original plan included:
- 275 units in Phase One
- 250 units in Phase Two
- 75 townhomes built by Ryan Homes
Phase One opened in June 2024.
A sample two-bedroom, two-bathroom unit offering 1,063 square feet of living space on the first floor of Building 1 is listed at $4,146 per month, with a base rent of $4,070.
A sample one-bedroom, one-bathroom unit offering 723 square feet is listed at $3,159 per month, with a base rent of $3,083.
Select units advertise three months’ rent free, according to the project’s website.
Ryan Homes townhouses at the site are priced starting at $984,990, with estimated monthly payments of approximately $7,060.
Under the revised plan — which developers said required a PILOT to secure financing — the project would expand to 1,100 total units, including 254 affordable housing units. Combined with redevelopment credits, the plan satisfies Parsippany’s fourth-round affordable housing obligation.
Buildings at 700 Lanidex Drive will be demolished, while 800 and 900 Lanidex Drive will remain for now.
School District Raises Concerns
Parsippany Board of Education President Alison Cogan spoke during public comment, warning about the long-term impact on the school district.
“The ordinance you are voting on tonight could produce over 400 additional students,” Cogan said. “Those students would not be accounted for in our revenue budget, since the 2% cap remains the same.”
Cogan added that the Board of Education has spent the past two years attempting to negotiate a revenue-sharing agreement with the township, without success.
Cogan also stated, “We never got any offer or written agreement or anything for a school, or land. There was never an offer of that to the board of education. So, that was interesting.”
Carifi responded that multiple proposals were made, including an offer of free land at the PARQ site for a new school, supplemented by township PILOT funds. That proposal, along with subsequent offers of $10,000 and later $12,000 per student, were declined.
Officials noted that the actual per-pupil cost to educate a student in Parsippany significantly exceeds those amounts.
Impact on Schools and Taxpayers
Because PILOT developments do not pay school taxes, the cost of educating students generated by the PARQ project would fall entirely on existing taxpayers.
Critics argue the arrangement creates a long-term subsidy for developers, while residents and small businesses continue paying full property taxes. Over time, opponents warn the structure may lead to:
- Increased school taxes for homeowners
- Greater strain on municipal and school budgets
- Reduced funding flexibility for classrooms, staffing, and facilities
Mayor-elect Pulkit Desai attended the meeting but did not speak. Desai narrowly defeated incumbent Mayor James Barberio by 80 votes in the general election. Barberio’s election challenge is scheduled to be heard on January 5. Desai and the new council are set to be sworn in on January 3.
