Two self-storage businesses in Vineland, N.J., are in a position to receive property-tax abatements after the city council introduced an ordinance proposing payment-in-lieu-of-taxes agreements, also known as PILOTs. The council is expected to make a decision on the applications from Delsea Investments LLC and East Avenue Properties LLC on Nov. 25, according to the source.
If approved, the PILOT agreements would alleviate the self-storage operators from having to pay property taxes in 2015. Instead, taxes would be set to increase incrementally over a five-year period until they reach their full amount, the source reported. From the city’s standpoint, the agreements are intended to encourage local investment and development, according to the Southern New Jersey Development Council (SNJDC).
Delsea Investments owns Vineland Self Storage, a new facility at 820 N. Delsea Drive. The facility, minus the land, is valued at $100,000 for tax purposes. East Avenue Properties owns a storage facility at 1851 S. East Ave. Minus the land, that facility is valued at $87,500, the source reported.
City officials recently approved approximately $6.4 million in property-tax abatements for six construction projects, according to the SNJDC.
Sources:
- Southern New Jersey Development Council: Vineland OKs Tax Discount Deals Worth $6.4 Million
- The Daily Journal: Self-Storage Businesses to Get Tax Deals
