Neptune’s Redevelopments Could Increase Tax Revenues
Posted by Stephanie Brunson on 05/03/06

As Printed in The Coaster
By ANDREW CANGIANO

Neptune’s multiple redevelopment projects could give the township an additional $12.3 million in tax revenue, Stanley Slachetka, a consulting engineer for the township, said at the Township Committee meeting on Monday.

Currently, the township receives about $278,000 a year from the properties that could be developed, he said.


All except one of the properties in the estimated tax evaluation are a part of the township’s strategic redevelopment plan - which includes the Shark River North Channel Inlet, West Lake Avenue, the former Whitesville School site, and the Ridge Avenue School site.

A proposed development of 600 age restricted units in a parcel of land bordered by Route 66 and Route 18 (where a high-tech park had originally been proposed), was also considered in the tax estimate.

Slachetka showed via power-point the current tax revenues for each of the possible redevelopment sites and a projection of how much tax revenue these properties could generate in five years if they are redeveloped.

The anticipated tax revenue for each redevelopment site was based on an annual five percent increase on the current tax rate projected over five years. Based on the current tax rate of $1.97, the rate in five years would be $2.60.

The Whitesville school property, which is vacant, is currently assessed at $535,000, producing $10,694 in tax revenue under the current tax rate.

If a proposed 76,000 square foot medical office complex is built, the property would be assessed at $11.4 million and would produce $296,400 of tax revenue in five years under the future tax rate.

The properties on West Lake Avenue are assessed at about $3.86 million and currently generate $77,000 of tax revenue.

Under the proposed mixed-use redevelopment plan, the properties on West Lake Avenue would be assessed at about $102.5 million and would create about $2.67 million in future tax revenue.

The properties on the Shark River’s North Channel Inlet, which include the Headliner and Sunsets Restaurant, are assessed at about $8.86 million and currently generate about $177,000 in tax revenues.

Under the proposal to turn the inlet into a mixed-use waterfront destination, the township anticipates the property could be assessed at $83.25 million, creating $2.16 million of tax revenue in five years.

The undeveloped area bordered by Route 66 and Route 18 is currently assessed at $670,000 and generates $13,000 in tax revenue.

A proposed development of 600 age restricted units on the property could raise the assessed value to $270 million and generate $7 million in tax revenue.

Mayor Thomas Catley said the township’s revitalization plan will address the problem of increasing property taxes on a short term basis.

He said the township is looking to increase tax revenue by $15 million over the next five years through its revitalization plan.

�The people [of Neptune] need to know this isn’t some pie in the sky dream, it’s happening now,� Catley said about the township’s plan for redevelopment.

The mayor also addressed this year’s budget, which will be voted on by the committee at their next meeting. He said he supports the budget, which includes a 4.7 cent tax rate increase, but said that property taxes in the state are �unacceptable.�

In other news, David Bacon, a longtime township resident and bus driver for S.C.A.T (which provides transportation services to seniors in Monmouth County), expressed concern that the township might not renew its contract with S.C.A.T after this year.

In a phone interview Tuesday, Neptune CFO Michael Bascom said the township has considered using its own buses and drivers to provide busing for seniors, because of the substantially increased costs of using the county bus service.

S.C.A.T. has provided busing for seniors in Neptune since 1975, but the cost of using its services has doubled in recent years, Bascom said. This year, the price for the busing service rose to $112 per-day and next year the cost is expected to be $158 per-day, he said.

However, Bascom said Neptune will continue to use S.C.A.T for senior busing services until at least the end of 2006, after which the township will re-evaluate whether to continue its contract.

Neptune will continue to provide busing to its seniors even if the township decides not to renew its contract with S.C.A.T., he stressed.