Paterson considering two 30-year tax abatement agreements

August 7th 2015

Paterson Times

By Jayed Rahman

The first 30-year tax abatement agreement is being sought by Cooke Hamilton Associates which owns 21 Market Street, 20 Mill Street, and 21 Mill Street, according to city records.

Under the PILOT (payment in lieu of taxes) agreement Cooke Hamilton Associates will pay the city 10-percent of its gross income for the first 10 years. From the 11th year it will increase that rate to 12.5-percent until the 21st year, when that rate will be 15-percent, according to city records.

The city will receive $174,771 annually at the 10-percent agreement from the company’s $1.87 million anticipated rent revenue. However, under full taxation the municipality will collect $347,797 every year, according to city records.

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