WOODCLIFF LAKE, N.J.—The Borough Council unanimously approved the hire, Oct. 21, of an attorney to represent Woodcliff Lake in its appeal of a dramatically lowered tax assessment of a property at 188 Broadway.
Council named Anthony S. Bocchi and the firm of Cullen and Dykman LLP to represent the borough in its commercial tax appeal against 188 Broadway LLP, which owns the 3.3-acre property at 188 Broadway.
The council is opposing a $2.4 million decrease in assessed value—it plunged from $6.9 million to $4.5 million—representing a revenue loss of approximately $50,000 per year, officials said.
The owners of 188 Broadway appealed the tax assessment after its purchase for $4.5 million in 2018 and won a reduced property tax reassessment of the now-vacant office building in January.
Following complaints from residents, Mayor Carlos Rendo called for an investigation after residents noted a possible conflict of interest by borough tax assessor James Anzevino, who also works part-time for Paramus.
Richard LaBarbiera, Paramus mayor, and Paul Kaufman, Paramus borough attorney, are both partners in 188 Broadway LLP, which owns the property.
60-unit proposal rejected
In July, after eight public hearings, a proposed plan by the owners to place 60 multifamily rental units in two buildings on the property was rejected unanimously by the Zoning Board of Adjustment, citing traffic concerns, a zoning change required, high density, lack of open space, and lack of benefits for the borough.
Following an investigation into the conflict of interest allegations against Anzevino, Borough Attorney John Schettino released a report that showed Anzevino had recused himself on the 2018 tax appeal and from approving the new reduced assessment of $4.5 million from Associated Appraisal Group.
Due to Anzevino’s recusal, another tax assessor, George Reggo, who consults for other towns, approved the lowered reassessment.
Schettino’s report on Anzevino’s role, issued in August, found no wrongdoing or conflicts of interest by Anzevino.
Following the unanimous resolution approval to hire Bocchi, resident Craig Marson questioned whether Bocchi had the tax expertise to serve as a tax appeals specialist and asked council members if they had inquired about his tax appeal expertise.
He suggested re-advertising for another attorney with specific tax appeal expertise and urged council to reconsider the hire.
Schettino said a request for qualifications was advertised, and the firm that was hired had two attorneys with expertise in tax law, with varying levels of tax litigation expertise. He said Anthony S. Bocchi would supervise the tax appeal case.
He also said Marson’s suggestion that two lawsuits—the council’s lawsuit against the lowered reassessment and a lawsuit by 188 Broadway LLP to appeal rejection of its proposal to build a 60-unit multifamily complex, would not ever be commingled.
Schettino said the tax appeal litigation would be heard in tax court and the Zoning Board appeal in state Superior Court.
Marson questioned why the second attorney with tax appeal expertise was not named in the resolution hiring Bocchi.
“This town right now is under siege. You have any number of other lawsuits,” said Marson, noting Anzevino’s recusal as one issue not fully explained.
Other lawsuits affecting the borough include litigation by Valley Chabad and the federal Department of Justice charging local zoning discrimination that allegedly thwarted the synagogue from expanding within town.
Marson questioned why the attorney with most tax appeal experience was not front and center on the hiring resolution, noting that 188 Broadway faced a legal appeal of the Zoning Board’s decision soon in court.
Borough Administrator Tom Padilla said Bocchi would be the lead legal contact and case supervisor because most council members know Bocchi.
Schettino said the Bocchi attorneys accepted an hourly rate of $125.00 per hour—which Marson said may indicate an attorney with less tax litigation experience—because they know a government entity is a reliable payer of its bills. Schettino said the rate is generally accepted by most tax attorneys doing government work, which average $125 to $175 hourly.
In late August, following Schettino’s report clearing Anzevino, Rendo questioned why the council was not told of Anzevino’s conflict of interest and recusals prior to initiating an investigation into the matter.
Rendo said then he felt “uneasy” with the way the tax appeal was handled and questioned why the council and mayor was not told by Anzevino that he had a conflict and had recused himself from the tax reassessment appeal.
Vacancy rate equals reduced taxes
Following the Zoning Board’s July rejection of a proposal to build a two-building, 60-unit multifamily rental complex—which included nine affordable units—one reason cited by members included a lack of testimony from 188 Broadway LLP experts that they were unable to rent out 188 Broadway as an office complex.
That rejection is now being appealed by 188 Broadway LLP.
In August, Rendo said the lowered tax assessment was based in part on 188 Broadway being vacant.
However, Rendo said it was only vacant because its new owners did not seek any office complex tenants as they had no intention of renting it as an office complex.
A person familiar with the tax appeal filed by 188 Broadway LLP said they used a 30 percent vacancy rate as one part of their tax reassessment appeal while the new owners noted elsewhere in the documents that they never intended to rent the existing office building.
Following the meeting, both Rendo and Council President Corrado Belgiovine declined comment on the hire. No comments were made on Bocchi’s hiring by Rendo or council during the meeting.
In a related matter, council adopted a resolution in August requiring an annual report to list all commercial reassessments marking a change of at least 10%, or $25,000, from a previous year. The annual report—due by March 1—was due to council members not receiving information about 188 Broadway’s reassessment and was to act as “a double check” on being updated on future commercial reassessments.
Zoning Board appeal
On Sept. 19, 188 Broadway LLP filed a lawsuit in Superior Court to overturn the Zoning Board’s July rejection of its application to build a 60-unit rental complex on the site.
The suit claims the board “improperly relied upon traffic concerns to deny the application” and failed to take into account the “inherently beneficial use status” of affordable housing “for purposes of obtaining a use variance” as cited in a 2009 appellate court decision.
No trial date for 188 Broadway LLP’s Zoning Board appeal has been set.
