EMERSON—The borough’s downtown redeveloper owes slightly more than $64,000 in back taxes for 2020 on nine properties in the redevelopment zone, a situation that the borough attorney says shows the redeveloper “has unclean hands and fails to meet its obligations.”
It’s the latest wrinkle in the borough and Emerson Redevelopers Urban Renewal’s litigation-plagued relationship following the redeveloper’s approval, in late 2018, to build a four-story, 147-unit mixed-use retail/residential development called Emerson Station on Kinderkamack Road near the downtown train station.
That development included 15,000 square feet of ground-level retail space.
Residents spoke out at the time with concerns about the process leading up to the deal, including the borough’s aggressive stance in condemning local businesses in the area.
Then-councilwoman Danielle DiPaola campaigned for mayor in large part against “overdevelopment” represented by the project, unseating Democratic incumbent Louis Lamatina, who nevertheless left DiPaola and her administration a signed deal to honor.
We noted a public notice published Sept. 10 — and available on njpublicnotices.com — declaring the redeveloper owed $64,032.33 in back taxes and interest on the nine properties.
The total principal owed for 2020 was $54,783.38 before interest was added.
Moreover, should the property owner wish to pay off 2020 back taxes, according to state law, officials said the property owner must also pay off the 2021 quarterly taxes owed, plus interest. Those taxes owed add significantly to the amount of taxes due, said officials.
The notice lists a tax payment deadline of Tuesday, Oct. 5, 2021, 10 a.m., until which the property owner can pay the overdue taxes and interest.
However, if taxes are not paid, tax liens will be sold on the nine redeveloper-owned parcels of land on Oct. 5. Potential buyers of the tax liens will accrue 18% annual interest on the tax liens, said officials.
Emerson Redevelopers Urban Renewal LLC attorney Joseph B. Fiorenzo did not respond to our requests for comment for this story.
“It seems unusual because their attorney seems to enjoy speaking to the press,” said DiPaola on Sept. 14.
Other local official involved declined to comment for this story on the record but most told us they were puzzled by the redeveloper’s motives in leaving its property taxes unpaid.
The borough’s attorney was “baffled” too.
“This [nonpayment of taxes] is demonstrative that this redeveloper has unclean hands in the litigation it filed,” said Borough Attorney John J. McCann. “That’s something for the public to consider, especially when the redeveloper is making allegations against the borough.”
McCann said Emerson Redevelopers Urban Renewal “should have paid them [the taxes] to begin with. To me, this demonstrates the incompetence of the organization.”
McCann called the redeveloper’s litigation against the borough and Mayor Danielle DiPaola “frivolous… and the fact that they failed to pay their taxes speaks to their motives.”
McCann previously told Pascack Press he believed that the redeveloper was filing lawsuits and holding up construction on the long-stalled project because they did not want to build the previously agreed-upon amount of retail space.
Emerson Station includes 29 affordable units, with 22 to be built on-site and seven units to be built elsewhere in town.
Lately, some construction activity had been occurring on site, which McCann attributed to appointment of an implementation monitor (a retired Superior Court judge) whose job is to work with the borough and redeveloper to ensure that the affordable units are built and site progress continues.
Ongoing lawsuits
Emerson, and DiPaola, are defendants in lawsuits filed by the redeveloper last summer, charging them with delaying and obstructing the project.
Emerson filed a countersuit against the developer denying its charges and charging them with failing to reimburse the borough for $500,000 in construction services owed them for the deed to property formerly housing the local ambulance squad.
The redeveloper charged that Emerson did not submit its design plans for a new ambulance building by a 2019 deadline and was in default of its agreement to do so.
Recently, the redeveloper had filed a federal lawsuit in U.S. District Court alleging that Emerson has acted in bad faith, delayed their construction schedule, and showed racial discrimination by preventing 29 affordable units from being built as part of the 147-unit, mixed-use residential/retail development planned for downtown.
Emerson has filed a motion denying the charges based on no evidence and challenging the redeveloper to build its approved project.
McCann has charged that the developer’s recent claims are a subterfuge to further delay construction in hopes that a judge may rule for discovery to look into their allegations.
McCann told Pascack Press previously that failure to reimburse the $500,000 in construction services for the ambulance property and the redeveloper’s refusal to sign a developer’s agreement with a construction timetable were two sticking points holding up the project.
McCann said that Judge Padovano is reviewing the developer’s agreement.