Dear Editor:
On Tuesday night, Parsippany’s town council approved a staggering $117 million PILOT tax break for the developers of the PARQ project. The entire PILOT evaluation process lasted only two weeks, which was not enough time for the council or the public to perform due diligence. The public was at an even greater disadvantage because, despite being promised that the financials associated with the PILOT would be posted on Parsippany’s website, the public first had access to PILOT information on the same night the final vote on the PILOT was taken.
It’s been two years since Parsippany issued its last PILOT. During that time, the PARQ developers completed the first phase of the project, consisting of 275 apartments and 75 luxury townhouses at the same PARQ location, WITHOUT a PILOT. Now, only weeks before Parsippany’s affordable housing plan is scheduled for review by the state, the developer declared that the next phase of the PARQ project is not financially viable unless they receive a PILOT. I believe that the timing was deliberate and intended as a form of extortion. Caving in to the pressure of the upcoming state review, the council approved the PILOT by a 4-1 vote and the conventional taxpayers of Parsippany will be $117 million poorer over the next 30 years as a result.
Unfortunately, the loss of tax dollars was not the only damage done from granting the PARQ PILOT. During the council meeting, I don’t believe that the members who voted in favor of the PILOT ever realized that the project they were approving had almost doubled in size. According to Parsippany’s court-approved affordable housing plan, 120 affordable units are required to be built in this phase of the PARQ project. The 4:1 ration of market rate to affordable units then allows 600 total units to be constructed at the site. However, the unit numbers listed in the PILOT agreement are 254 affordable and 1100 total units. The council was made aware of this discrepancy at the meeting, but never explained how or why the project was expanded so much, and then voted for it anyway.
At various times during the council meeting, the mayor and the council members complained about the destructive impact that the affordable housing mandate was having on all aspects of Parsippany- traffic, infrastructure, water system, school system, etc. Yet they inexplicably voted to allow the PARQ developer to build 500 more apartments than required by the state. I can see how council members might be pressured into giving a PILOT tax break, but allowing 1100 apartments to be built when only 600 are required is unconscionable, especially to the residents of Lake Parsippany.
Once an ordinance is passed, there is a period after approval during which it can be contested. If residents make their voices heard on this issue, the new mayor and council will scale back the ordinance to 120 affordable units and 600 total units, which Parsippany is actually responsible for.
Bob Venezia
