New Future Starts For ‘Once-Dilapidated’ Lot In Belleville

BELLEVILLE, NJ — Developers have officially broken ground on a “state-of-the-art industrial facility” in Belleville, town officials announced Thursday.

The lot at 675 Main Street has been vacant for decades until Bridge Development Partners began construction at the 359,000-square-foot space, which is expected to open next year.

The facility will feature 40-foot clear ceiling heights, 58 rear-loading docks and parking for up to 160 cars and 94 trucks, township officials stated in a news release.

A spokesperson for Bridge Development Partners said the company was eager to put down roots in Belleville because of its location; the township borders Newark and is in the shadows of New York City. The site is within six miles of the Lincoln Tunnel and four miles of the New Jersey Turnpike.

It isn’t yet known what tenants will occupy the space, although it could possibly serve as a “last-mile warehouse” that works to distribute packages from fulfillment centers to front doors, Belleville Mayor Michael Melham said.

“We’re excited to transform this once-dilapidated site into a state-of-the-art industrial facility situated strategically to serve millions of residents in both New Jersey and New York,” said Jeff Milanaik, Bridge’s Northeast region partner.

“This project would not have been possible without the support of the township of Belleville,” Milanaik said.

PILOT AGREEMENT

The developer has secured a payment in lieu of taxes (PILOT) agreement as part of the plan, officials said.

PILOT agreements – also known as municipal tax abatements – are deals that enables a developer to switch their standard tax payments for a property with a fixed, yearly payment to the municipality.

Some municipal officials have called PILOT agreements useful tools to attract development to distressed or blighted areas of town. But their use has drawn criticism from opponents, some who caution that the deals can enable a big developer to skip out on paying their fair portion of property taxes. Learn more about PILOT agreements here.

Tax abatements have had a controversial past in Belleville, where previous agreements have seen criticism from some residents.

• See related article: Entire Town Of Belleville 'In Need Of Rehab?' It Could Happen

Details about the PILOT for 675 Main Street weren’t immediately available. However, the developer has agreed to make a $1.5 million “community contribution” as part of the deal, which will be earmarked for a future indoor turf facility in the township, officials said.

The vacant property has been “yielding the bare minimum property taxes” for decades, according to a statement from the township’s development committee, which consists of Mayor Melham, Deputy Mayor Thomas Graziano and Councilman Vincent Cozzarelli.

Another benefit of the deal is that the developer has agreed to foot the bill to remediate on-site contamination at the property, Cozzarelli said.

“This is a win-win-win situation all the way around,” Cozzarelli said. “This project will have many benefits for Belleville for years to come and the development committee is very excited to have helped facilitate this deal.”

“This is the first council in more than 40 years to get a deal done on the site,” Melham said.

“It is also proof positive that PILOTs aren’t a bad thing,” Melham added. “Because of the PILOT, we have a developer paying to finally remediate contaminated land, rather than cap it, and we received a community contribution to create yet another sports and recreation facility.”

• See related article: Belleville Mayor Talks ‘PILOT’ In State Of Town Speech

PILOT agreements have also been put under the spotlight in other Essex County towns, including West Orange, where a controversial redevelopment project is inching closer to the finish line. Read More: West Orange Development Plan Reborn, Moves Forward

As part of a presentation in support of that project, West Orange township officials pointed out that there are a number of existing municipal tax abatements throughout the county. That includes:

• Bloomfield – 6
• Montclair – 4
• Orange – 2
• Roseland – 2
• South Orange – 6
• Verona – 4

PILOTs have been used to spur growth in Newark neighborhoods outside of the Downtown District, Newark Airport and the Newark Port.

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