Economic Consultant
Robert Benecke

5/8/17 Caucus & 5/10/17 Council Meeting

PERTH AMBOY – Robert Benecke from Benecke Economics came before the Council to give a presentation on various  types of PILOT (Payment in Lieu of Taxes) Programs. PILOT Presentations have been given before the Council at least three previous times.

Benecke explained, “There are three types of PILOT Programs:

1.) NJ Housing (Housing Authorities)

2.) Long Term Tax Exemption (Redevelopment and UEZ)

3.) Short Term Tax Abatements

Benecke explained, “In regards to the Bridge the $2.2 million that the tenants pay would the City Coffers that could be used for the City infrastructure facilities.”

Benecke continued, “With the (Bridgeport) Distribution Center, you have greater flexibility and it can offset the annual service charges. If the units are not occupied, then you don’t receive the money. You receive more money with the PILOT Program than without.”

Annie Hindenlang came forward to let the Council know how important PILOT Programs are. “400 people showed up for 50 Managerial positions at the recent Target Job Fair. Bridgeport has been a great partner and has brought a lot to the table. Financial agreements have not been finalized yet, so it can be adjusted.”

Both Benecke and Hindenlang emphasized that money can be earmarked and it does not have to go into the general fund and there will be a $193.00 savings for the taxpayers with this PILOT Program.

Councilman Fernando Gonzalez mentioned the surplus money that the City has had each year. “They still find a way to spend that money.”

Councilman Fernando Irizarry reminded the Council, “The  $5 million surplus money from last year – $2 million came from grants.”

Benecke complimented the City Council on how well the City’s money is spent.

During the public portion, Resident Reinaldo Aviles said, “I’m not against PILOTs if we can get 1000 jobs out of it. If we can give away tax ratables, let’s see what we can give residents. A lot of time, they (contractors/developers) say that they can go to other communities. We should not automatically say no to PILOT Programs.”

Rector Street Resident Mark Achamizo  made a suggestion pertaining to the PILOTs stating, “I recommend  sustainable energy be built into the contracts. Maybe donations of solar panels. We need to work to be a self  sustainable community.”

During the Council Comments, Councilman Irizarry showed his frustration and asked,”When will the PILOT (for E-Port) be put on the agenda? We’ve had several presentations on this program.”

Council President Bill Petrick responded, “We still have time and it can be discussed in closed session.”

During the 5/10/17 Council Meeting, the discussion continued.

Resident and Businessman David Caba said, “We should not give PILOTs to millionaires.” He then addressed each Council Member individually, asking them, “Do any of you have a PILOT?”

They each answered, “No.”

Caba continued, “Poor people get fined when they have violations on their property, but not Kushner and his dump. Kushner promised all of these amenities. They (the people (contractors/developers) will get a PILOT because of a weak administration. It’s your (the Council) job to look out for the residents, and not the developers.”