BAYONNE — The tax abatement passed by the city council last week for a residential development on the former Military Ocean Terminal is projected to pay the city more than $2.3 million annually, according to revenue projections.
In a meeting on Jan. 18, the city council yatırımsız bonus veren siteler unanimously passed a 30-year tax abatement for a real estate development project with Boraie Development LLC.
The residential project will feature between 500 and 850 units, according to the application the developers submitted to the city.
Projections for the residential development have it slated for an annual gross revenue of $21 million in 2019 with increases over the next eight years. The development is projected to create more than $25 million in revenue by 2026, according to the application.
The abatement would direct 11 percent of the property’s annual gross revenue into city and county coffers — with 95 percent of the tax revenues going to the city, according to the city’s business administrator, Joe DeMarco.
However, the Bayonne School District will not receive a portion of the revenue, as it would under a traditional tax structure.
The PILOT — payment in lieu of taxes — would also increase to 12 percent of the annual gross revenue “around year 13,” DeMarco said.
“(The PILOT passing) is just a piece of the puzzle,” he said. “They still have to go through design phases of that nature, so they’re still probably a year and a half away from actual construction.”
The construction will be broken down into three phases, with the first phase creating 150 residential units in a four-to-five story building east of the Harbor Pointe property, formerly Alexan CityView Apartments, on Grandbetting Bayonne Bay East.
The potential for unit increases in the next two construction phases depend on how the first building fares in the residential market, DeMarco said.
“Most of this is market driven,” DeMarco said. “The success of the building will determine whether or not they increase the size of the second and third building.”
The amount of tax revenue increases depends solely on the success of the development, DeMarco said.
“The advantage of a PILOT is you’re actually sharing in the success of the project, so the more successful the project the more beneficial to the city,” he added.
The development would also have added benefits for the city and county, including an addition to the Hudson River Walkway required to be built by the developers.
The former Military Ocean Terminal, the two-mile long, man-made peninsula jutting into the New York Bay, has been a target for development in the past several years with some successes and failures.
In 1967, the MOT became a U.S. Army base, and was considered at one point the largest dry-dock on the eastern seaboard.
The property was transferred back to the city of Bayonne in 2001 and has since been renamed “The Peninsula at Bayonne Harbor.”
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