12-25

Introduced: May 1, 2025
Public Hearing: May 15, 2025
Status: Adopted

Please note: An Ordinance Authorizing Execution of an Agreement for Payment in Lieu of Taxes with Randolph Mt. Freedom, LLC for an Affordable Housing Development as Authorized by N.J.S.A. 52:27D-329.2 (Block 224, Lot 5)

• WHEREAS, the Township of Randolph (“Township”) and Randolph Mt Freedom, LLC (“Developer”) entered into an Affordable Housing Agreement dated February 20, 2025 (“AHA”) regarding the development of a 100 percent affordable housing development on property located at Block 224, Lot 5, in the Township of Randolph (the “Property”) consisting of twenty-five (25) affordable housing units, comprised of eighteen (18) family, rental units and seven (7) supportive housing units (“100% Affordable Development”); and
• WHEREAS, the AHA set forth terms and conditions regarding the construction and financing of the 100% Affordable Development including a municipal contribution which consists of (1) an agreement for payment in lieu of taxes (“PILOT Agreement”) with the Developer and (2) a contribution from the Township to the 100% Affordable Development in an aggregate amount of $900,000.00 consisting of (i) the reimbursement or forgiveness of any fees payable to the Township, and/or (ii) a cash contribution from the Affordable Housing Trust Fund (“AHTF”) and/or other municipal sources; and
• WHEREAS, in accordance with N.J.S.A. 52:27D-329.2, et seq., the Township and the Developer have negotiated a PILOT Agreement consistent with the terms and conditions of the AHA that establishes the rights, responsibilities ad obligations of the Developer and the Township in support of the 100% Affordable Development; and
• WHEREAS, the Township desires to approve the terms and conditions of said PILOT Agreement and to authorize the execution of said PILOT Agreement.
• NOW, THEREFORE, BE IT ORDAINED by the Governing Body of the Township of Randolph, County of Morris, State of New Jersey as follows:

1. 1. The Township makes the following findings regarding the relative benefits and costs of granting a tax exemption and entering into an Agreement for Payment in Lieu of Taxes for the 100% Affordable Development pursuant to N.J.S.A. 52:27D-329.2, and the importance of the same in realizing the development of the 100% Affordable Development:
   
   The Township finds that granting a tax exemption and entering into an Agreement for Payment in Lieu of Taxes for the 100% Affordable Development will benefit the Township and the community by helping to address a current affordable housing need. The benefits of granting the tax exemption and entering into an Agreement for Payment in Lieu of Taxes will substantially outweigh the costs, if any, associated with this arrangement. The tax exemption and Agreement for Payment in Lieu of Taxes are important to the Township and the Developer because, without the incentive of a tax exemption, it is unlikely that the 100% Affordable Development would be constructed. The high costs associated with the development and construction of the 100% Affordable Development and the real estate taxes that would otherwise be levied upon the 100% Affordable Development would operate as a disincentive to the construction of the 100% Affordable Development on the Property.
   
   
2. All the terms and conditions of a certain Agreement for Payment in Lieu of Taxes by and between the Township of Randolph and Randolph Mt Freedom, LLC for the 100% Affordable Development dated May 1, 2025 (“PILOT Agreement”), be and the same are hereby approved, ratified and confirmed by the Township.
   
   
3. The Mayor and Clerk are hereby authorized to execute said PILOT Agreement subsequent to the execution by Randolph Mt Freedom, LLC and, together with other appropriate officers and employees of the Township, are hereby authorized to take all steps necessary to effectuate the purposes of this Ordinance.
   
   
4. The Township hereby authorizes and approves any non-substantive modifications to the PILOT Agreement as may be recommended and approved by the Township Manager and Township Attorney prior to execution.
   
   
5. Within thirty (30) calendar days following the later of (i) the effective date of this Ordinance following its final adoption by the Township or (ii) the execution of the PILOT Agreement by the Township and Randolph Mt Freedom, LLC, the Township Clerk shall electronically submit a certified copy of this Ordinance and the PILOT Agreement to the Director of the Division of Local Government Services in the New Jersey Department of Community Affairs.
   
   
6. Within ten (10) calendar days following the later of (i) the effective date of this Ordinance following its final adoption by the Township or (ii) the execution of the PILOT Agreement by the Township and Randolph Mt Freedom, LLC, the Township Clerk shall file a certified copy of this Ordinance and the PILOT Agreement with the Tax Assessor of the Township and transmit certified copies of this Ordinance and the PILOT Agreement to the Chief Financial Officer of Morris County and to Morris County Counsel.
   
   
7. All ordinances of the Township of Randolph which are inconsistent with the provisions of this Ordinance are hereby repealed as to the extent of such inconsistency.
   
   
8. If any section, subsection clause or phrase of this Ordinance is for any reason held to be unconstitutional or invalid by any Court of competent jurisdiction, such decision shall not affect the remaining portion of this Ordinance.
   
   
9. This Ordinance shall take effect immediately upon final passage, approval and publication as provided by law.