North Bergen is moving to amend a five-year tax exemption it granted to a redeveloper to support a hotel.
Mayor Nicholas Sacco and the North Bergen Board of Commissioners voted unanimously to introduce an ordinance authorizing amendments to the financial agreement at its July 13 meeting.
The tax exemption is for Spectrum Capital North Bergen, LLC, for 1706 and 1904 Paterson Plank Road. The property is the Wyndham Garden Hotel in North Bergen, owned by Rohit and Raj Gaur.
A ribbon-cutting ceremony took place for the hotel on June 2, 2021, delayed one year by the COVID-19 pandemic. The entity applied for the tax exemption back in 2020, to support the five-story hotel with 135 units on the property.
Tax exemption granted in 2020
According to the ordinance, the Tax Assessor can regard the full and true value or a portion of certain improvements as not increasing the full and true value of certain property for a period of five years. That is, if the applicant gets approval from both the board and the Tax Assessor.
In 2020, the township voted unanimously to adopt the ordinance authorizing the agreement. The township and property owner entered into the Tax Exemption Agreement on November 9 of that year.
According to the new ordinance amending the agreement, Spectrum Capital North Bergen, LLC proposes to pay the township, in addition to the full races on the land which shall continue to be conventionally assessed and taxed and not appealed, pursuant to the Amended Agreement, a tax payment for the new improvements to the property.
New payment schedule proposed
The new payment schedule will see a total payment of $476,240 to be paid quarterly in the amount of $119,060 on February 1, May 1, August 1, and November 1. For 2023, the $250,000 payment can be paid quarterly in the amount of $62,500 on those same dates
For 2024, the $275,000 payment can be made quarterly in the amount of $68,750 on those same dates. And in 2025, the $300,000 payment can be paid quarterly in the amount of $75,000 on those same dates.
The ordinance will be up for a public hearing and vote at the next meeting in August. Sacco and the North Bergen Board of Commissioners will meet on August 17 at 11 am in the municipal chambers in Town Hall at 4233 Kennedy Boulevard. For more information, go to northbergen.org.
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