Waldwick council faces packed public hearing over Harrison Avenue pilot plan

The Borough of Waldwick’s council and mayor spent a large, often contentious meeting outlining a proposed pilot—an annual payment-in-lieu structure under New Jersey’s long-term exemption framework—to help finance the Harrison Avenue redevelopment and address what officials described as a multi-year budget shortfall.

Council President (commenting at the start of the redevelopment presentation) said the council declared the Harrison Avenue area “in need of redevelopment” after unanimous votes in prior years and negotiated a redevelopment agreement to limit density, require retail and include affordable units. He said the pilot is not a permanent tax cut but a financing tool: "Under New Jersey's long term exemption framework, pilot payments are structured as annual service charges rather than a traditional tax bill," he said, adding that profit for the redeveloper is capped by law and that audited financial statements will be required.

Why it matters: The borough’s leaders framed the pilot as a way to plug an ongoing gap in the municipal budget and to spur redevelopment of long-vacant properties such as the former Rite Aid block. Officials said that without incentives some properties could remain vacant, leaving the borough to continue drawing from reserves and raising taxes.

What the council presented: Finance and redevelopment officials described a package of safeguards they said are part of negotiations—construction timelines, audited CPA financial statements, land-tax credits, and comparisons built into the agreement so the borough ultimately receives the higher of a conventional tax share or a negotiated percentage of project revenue at prescribed points in the agreement. A council member summarized the local fiscal challenge: the borough has used about $1,000,000 of surplus in a recent year and faces rising employee benefit and pension costs that he said reduce options other than new revenue sources.

Residents press for numbers and school protections: Dozens of residents used the public-comment period to press the council to release the redevelopment pro forma and financial agreement before any decision. Concerns focused on three recurring points: whether pilot payments would raise resident tax bills; how many new students the development could add to the district and whether the board of education would bear unbudgeted costs; and how vacancy or market downturns would affect payments that are structured as a percentage of revenue.

"I'm worried we won't see that revenue until the project is completed," a resident said, noting the council’s own estimate that it may take years to realize payments. Several education-focused residents and a teacher urged an explicit mechanism to protect schools from unexpected enrollment or cost impacts, saying that presentation of concrete enrollment projections and classroom-level numbers is necessary before any vote.

Council response and next steps: Council members and redevelopment counsel said they have hired financial advisers who will present a full analysis to the public at an upcoming meeting; the council said the advisers’ report and the draft financial agreement will be posted and followed by a public hearing and a formal vote on any ordinance implementing the pilot. Redevelopment counsel clarified that the long-term exemption law currently directs pilot payments to the municipality and county, not the school board, although portions of land tax that remain taxable will continue to flow through the conventional tax pool.

Other business: The council approved a consent slate that included an award to Axon Enterprises for a police integrated equipment suite ($413,186.92), curb-ramp work to DS Meyer Enterprises ($88,017), a change order to Sovereign Consulting ($51,277.01) and other routine items. Two ordinances adjusting park-and-ride parking hours and paid-parking fee rules were introduced for first reading and set for public hearing in the coming weeks.

Bottom line: Council members said the pilot remains a proposal requiring more public review and a formal vote; residents demanded the release of the full pro forma and asked the council to include explicit protections or spending priorities for schools and essential services before approving a long-term exemption. The council plans a detailed presentation by its financial advisers at the next public meeting, followed by a public comment period and a future public hearing on any ordinance.