At the heart of the meeting was the discussion about a long-term tax exemption and financial agreement with CRP Development Urban Renewal LLC. This development project aims to transform a historically underdeveloped city-owned property into over 3.6 million square feet of warehouse space, with a potential hotel. Brian Morris, a financial adviser, presented the financial details, revealing an annual service charge expected to generate approximately $190 million over the agreement’s term. The projected property tax assessed is estimated at $230,000, based on a $1.2 million purchase price for the property. This tax revenue would be distributed among the county, city, and school district.

During the public comment segment, residents raised questions about the specifics of the Payment in Lieu of Taxes (PILOT) agreement. Brian Morris clarified that this particular agreement is based on a percentage of annual gross revenue, a model increasingly favored over traditional project cost-based models. Concerns about the developer’s financial stability prompted questions about the necessity of a 30-year tax break, with some suggesting a shorter term could be more appropriate. Despite the concerns, financial advisers highlighted the potential benefits of the project, including job creation and the revitalization of a long-neglected property.

The financial implications of the pilot agreement were debated further, with discussions on land sales and their assessments. It was noted that the land sale price of $45,000 per acre was higher than previous sales in Millville, but concerns over the city’s assessment ratio and potential valuation appeals were discussed. It was suggested that the agreement could include provisions to prevent appeals.

A discussion also centered on the construction of NAB Avenue, a componet for the project’s success. With preliminary designs projected to cost around $14 million, concerns were raised about the financial viability of the project and the city’s ability to undertake such an endeavor. The potential for county assistance was debated, with differing opinions on whether the county had requested funds for the design phases or would assist in construction.

Public comments further highlighted skepticism about the development project’s long-term impact. One resident pointed out that the project is a “generational choice,” with outcomes that the current council may not see. Another concern was the wage disparity for warehouse workers, questioning the developer’s claims of job creation at competitive wages.

The council also addressed the resignation of a planning board member, Tim Span, and discussed ongoing community projects, including a syringe manufacturing facility and illegal dumping prevention initiatives. Reports from commissioners included updates on street repairs and legal matters.

In the midst of these discussions, a significant infrastructure project related to the NAB Avenue Extension was also addressed. The completion of this extension is important for the ongoing development project, as it directly impacts the timing of subsequent construction phases. Concerns about potential delays were voiced, with the possibility of extending the PILOT agreement to as long as 50 years if phases are not completed simultaneously.

The ordinance regarding the long-term tax exemption for CRP was a focal point, with public comments expressing both support and caution. Kimberly Cardi, president of the Millville Board of Education, underscored the importance of collaboration with the city to ensure the project benefits local taxpayers and creates opportunities for students. Despite some hesitation, the ordinance was ultimately passed.

The meeting concluded with discussions on other ordinances related to capital improvements and bond issuance, all of which passed with unanimous support. Public concerns about financial management and city spending were raised, with calls for more prudent planning and consideration of the community’s long-term welfare.