WOODCLIFF LAKE—The Borough Council on Nov. 10 introduced an ordinance authorizing a 30-year payment in lieu of taxes (PILOT) agreement for a proposed mixed-use redevelopment on the former BMW North America headquarters site at 300 Chestnut Ridge Road.
A final public hearing is expected Dec. 8.
The 21-acre project, advanced by RW Woodcliff Lake Urban Renewal LLC — a joint venture of Russo Development and Woodmont Properties — calls for 370 housing units, including 47 townhomes, 297 apartments (34 of them affordable), and a 26-unit supportive housing building offering 40 beds for residents with special needs. Two retail spaces totaling 9,000 square feet, 912 parking spaces, and 40 land-banked spaces are also planned.
A hearing before the Land Use Board on the redevelopment plan was set for Nov. 13 to review its consistency with the borough’s Master Plan.
Financial terms
Under Ordinance 25-12, the redeveloper would make annual “service charge” payments in place of standard property taxes, as follows:
- 10% of gross revenue for years 1–10
- 11% for years 11–17
- 12% for years 18–23
- 13% for years 24–25
- 14% for years 26–27
- 15% for years 28–30
The ordinance states that the PILOT is “essential to the success of the project” and will provide “a stream of revenue in the form of annual service charges,” adding that the stability of those charges will help the developer and tenants “stabilize their expenses.” No estimates of anticipated revenue were included in the ordinance. Pascack Press requested the financial agreement Nov. 11 but had not received it by press time.
Background and rationale
At a Sept. 15 meeting, Russo Development CEO Edward Russo said the plan was refined several times to balance market-rate, affordable, and supportive housing, along with public open space.
He said roughly half the site will remain open, with a public walking path. Russo estimated the project could yield $54 million more in revenue than current office use and as much as $78 million more over 30 years under the PILOT, with 95% of payments going to the borough and 5% to Bergen County. (Editor’s note: These figures have not been independently verified.)
Russo also cited a 15% to 20% decline in local school enrollment over recent decades, suggesting the project would not add “a meaningful number” of new students.
The council also adopted a resolution Nov. 10 designating RW Woodcliff Lake Urban Renewal LLC as the official redeveloper for the site.