No doubt it was the most public and contentious IOU in Middlesex Borough history. It contributed to one mayor’s demise and an increase for local taxpayers. Finally, on March 1, the deadbeat redeveloper paid up.
Town officials announced this week the LLC that owns the defunct Price Saver supermarket property forked over more than $310,000 in unpaid PILOT money, land taxes and interest. Apparently, there were attempts to weasel on the bill to the end.
Business Administrator Marcia Karrow said there were offers floated by the redeveloper to pay a portion, in exchange for forgiving a portion. Karrow, however, held firm admittedly willing to play the “bad cop” role for the municipality. When there were no cut-rate paths possible to paying the debt, the redeveloper gave in.
Why now? Town officials referenced a “refinancing,” meaning there may have been an internal financial reason why paying up was beneficial for the LLC. Town officials and taxpayers will probably never receive a complete explanation.
The pounding that borough officials have taken over misfiring PILOT deals figures to subside a bit. Karrow is hopeful the infusion of $310K could eliminate the need for a municipal tax increase this year. Even if that happens, local taxpayers could still see some increase in their bills due to school-related taxes.
Town officials can now turn their sights to making sure PILOT payments for The Lofts are current. The LLC that owns that high-rise pretty much comprises the same individuals as the food store partnership. The Lofts PILOT has generated hundreds of thousands of dollars to the borough in the last few years. But without a qualifying audit of revenue, the mayor and council suspect more is owed. An audit is due later this month.
Both LLC’s are headed by Massimo Pinelli, who has also constructed housing projects in nearby Piscataway. The supermarket renovation was a companion project to The View high-rise which is still under construction on Lincoln Boulevard.
So, one project is paid up and another might soon follow suit. Taxpayers should also hope the March 1 opening of the wallet and the coming audit will mean the end of redeveloper deadbeat-ism.
As Pinelli’s LLC held onto its money, taxpayers were forced to temporarily make up for the shortfall in annual budgets. Time for all PILOT recipients to be good neighbors to the rest of the community.
Claremont Properties will construct a 380,000 square-foot warehouse/distribution center on the former Absolute salvage yard. At least so far, Claremont officials have taken a different tact than the Pinelli LLC’s. Claremont has worked cooperatively with the town on the potential site for a new public works garage and a needed sewer pumping station.
Going forward, will Pinelli follow suit and seek to build a better relationship with the town? It shouldn’t be that difficult. He can apparently be a generous guy. Pinelli once donated $10,000 to the ex-mayor’s infamous scholarship fund, according to the state Attorney General.
There’s also been tens of thousands of dollars in campaign donations to needy politicos. Why not do something more altruistic such as purchasing useful equipment for Middlesex Borough’s first responders?
By all accounts a highly successful builder, Pinelli appears to need public relations advice when it comes to dealing with the Middlesex populace. First, it was neighborhood parking problems resulting from The Lofts. Then, The View’s controversial approval got ramrodded through with an assist from a rare in-person Planning Board vote by the ex-mayor. A “yes” vote by the former mayor and a donation to his scholarship charity? Must be a coincidence.
The overhauled supermarket later opened next door but soon failed. No doubt, community ill will contributed to the lack of support. Perhaps, that spurred the behind-schedule PILOT payments. The borough scheduled a tax sale in late 2020, forcing payment of some back taxes.
It’s all resulted in ticked off residents and officials. Officials have vowed the borough will continue to be diligent in getting what’s due from The Lofts. In the end, with interest and penalties, the redeveloper ended up costing himself a bit more for the food store property. Although, it was probably a drop in the bucket monetarily, all things considered.
The long, ongoing food store scenario has done nothing to dispel the notion that taxpayers are pawns in the redevelopment game. Yes, $310,000-plus was coughed up last week. It might not have been hard for a redeveloper to do when he really wanted to.
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