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Avalon Bay Tax Program to Be Discussed at Special Meeting This Week

Tri-boro students will return to school and Kinnelon Board of Adjustment expected to hear continued testimony on Fayson Lakes water tank.

Avalon Bay Tax Break Program to Be Discussed

The will be having its regularly scheduled meeting Tuesday at 7 p.m. But the council will also have a second meeting this week on Thursday to discuss The program would give the developer of a luxury apartment complex on Union Avenue the ability to make payments to the borough in lieu of paying taxes for 30 years, thereby having the money split between the municipality and county as opposed to the majority going to the school district. Thursday's special meeting will be held at 7 p.m. at

Kinnelon Board of Adjustment to Hear Testimony on Water Tank

The Kinnelon Board of Adjustment is scheduled to meet and hear continued testimony on Tuesday at 8 p.m. at the

Butler Council to Meet

The will gather for their work session meeting on Tuesday at 7 p.m. at the Butler Municipal Building on Ace Road.

Tri-Boro Students Will Return to School

The first days of the 2012-13 school year will begin in all three tri-boro school districts this week. Bloomingdale and Butler students will return Wednesday while Kinnelon students will return Thursday.

concerned resident September 04, 2012 at 01:20 AM
Avalon Bay Decision Not only is the “Avalon Bay Decision” spread sheet study posted on the official Bloomingdale web site deceptive for labeling the 30th year of the plan 2019, it is deceptive for its primary omission. For all the columns of calculations presented, it tries not to display the critical tax money amounts that the home owners will deprived of each year. Where is the column in the Council’s study showing the hemorrhage from this plan for home owners projected over 30 years? Well actually it’s there. The Council is hiding this cost under the deceptively labeled column “Avalon’s benefit”. The “Avalon Bay Decision” spread sheet study is severely deceptive in a more fundamental way. It takes as its basis of calculation that under normal taxation Avalon would only have paid $700,000 in its first year, and extrapolating out from that concludes Avalon’s profit over 30 years to be only $3,650,000 (shifted onto the home owners backs not being mentioned). Under the PILOT plan Avalon Bay will only be charged 12% of gross revenues (granted it starts out with a $575,000 floor, including garbage service, snow is not a savings, equal to 14.4% of Avalon’s rents).
concerned resident September 04, 2012 at 01:22 AM
Avalon Bay Decision (continued 2) But if the plan is not adopted, which is the other option, as a brand new modern structure, Avalon will be assessed in excess of the same 20% of gross rents that all the 50 year old garden apartments in town are now charged and have to contribute. Thus the town is completely justified in assessing this new modern facility at 22% to 23% of gross rents. And that justified 23% of a projected initial $4,000,000 annual rent roll is $920,000, not the meek $700,000 tax collection used to prejudice the Council’s study. Correcting for this $220,000 annual inaccuracy, home owners must at a minimum add that amount adjusted with the 2% annual growth rate of the study to determine Avalon’s real benefit and homeowner’s real loss over 30 years. Using Excel, one finds one must add at least $8,935,000 to the Council’s estimate of $3,650,000 for a total of $12,585,000 homeowner loss at the Council’s assumed 2% annual increment. $12.6 million we believe to be an entirely more serious story than the $3.7 million story of loss being postulated by the Council, bad as that is.
concerned resident September 04, 2012 at 01:26 AM
Avalon Bay Decision (continued 3) The “Avalon Bay Decision” spread sheet fails to explore alternate inflation scenarios and fails to quantify the risks it is exposing Homeowners to. Rents follow household income. Suppose wages 30 years from now triple or quadruple. Suppose policeman and teachers 30 years from now routinely make $400,000 per year paid for by the homeowners. And bread is $25 a loaf. And rents at Avalon Bay are routinely $8K month or more. That implies the need for a spread sheet study with an increment of 5%, which the Council has not supplied. To understand the tax revenues that will be lost to the town under this PILOT plan if inflation averages 5% over the next 30 years and prices quadruple,, we homeowners must increment by 5% over 30 years our (see above) realistic $920,000 share that Avalon would have initially paid in taxes without the PILOT plan. Again, using Excel, the total taxes paid by Avalon under normal taxation over the next 30 years would be $61,123,700 in a 5% inflation scenario.
concerned resident September 04, 2012 at 01:28 AM
Avalon Bay Decision (continued 4) Assuming for simplicity that the PILOT plan yielded 12% of rents as restricted by the plan instead of the normal 23% of rents over those 30 years, the homeowners would be limited to only $31,890,600 under the plan instead of $61,123,700 without the plan, for a net $29,233,000 forfeiture of tax support from Avalon Bay under the proposed PILOT AGREEMENT. Not knowing the homeowners’ future burdens and the shape of the future economy, clearly the PILOT AGREEMENT is a huge $30,000,000 roll of the dice, locking us into the unknown for 30 years, putting the ranch house in the betting pot.
concerned resident September 04, 2012 at 01:30 AM
Avalon Bay Decision (continued 5) Not only does the Town Council snatch away Avalon’s contribution to the Board of Education, but the Council continues to tax the homeowners as if the Council never received this exclusive bonanza source of Avalon Bay payments. The homeowners are abandoned by Avalon and the Council to shoulder the education burden and most of the County burden by themselves. In all fairness, the 13.9% of its $920,000 normal tax for the County and the 52.7% of its normal tax for the Board of Education that Avalon is exempted from paying by the PILOT plan, $126,127 and $484,840 respectively, are a great loss, a sneaky, back door tax increase on the homeowners. If Avalon can be exempted from education and County taxes in return for its exclusive payments to the Council, certainly equity dictates that the homeowners should receive and enjoy an equal exemption, $126,127 + $484,840 = $610,967, from or discount from the total of the Town Council’s budget.
concerned resident September 04, 2012 at 01:32 AM
Avalon Bay Decision (continued 6) Home owners should insist by petition, by tax appeal, by electing a new Council, that the tax rate for all homes reflect a credit or exemption from municipal taxes equal to Avalon’s exemptions from County and education taxes. If that makes the Council come up short, because it has forgotten its homeowners, been taken in, and given such a PILOT plan giveaway to Avalon, then the Council should simply have to tighten its belt more than it is already, to honor the contract it has made to augment Avalon’s profits, ignoring the voters interest.
Ray Yazdi September 04, 2012 at 03:13 AM
Please don’t pay any attention to these posts. These numbers and calculations are absolutely wrong and there’s no deception, just what’s best for Bloomingdale. Please attend Thursdays meeting to hear it firsthand. We’re not giving up any Bloomingdale money to Avalon Bay and this PILOT is exactly the break that Bloomingdale has been waiting for. Is it good for Avalon Bay?? Absolutely… Is it even better for Bloomingdale residents and tax payers?? That’s what we’ve focused on and I will be explaining on Thursday Avalon Bay’s benefit is limited to what would have normally gone to county “county taxes”. And as we use these extra dollars to stabilize taxes for our municipality, while Avalon’s PILOT minimum grows by 2%, the benefits to Bloomingdale tax payers, will grow even more and faster each year. I don’t respond well to people with fake names & No names – so don’t expect to see any more posts from me and hope to see you soon at Thursdays meeting

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