Commentary on CDC Tax Abatement

Something that won't be on the agenda at Tuesday's regular City Council Meeting is a request for taxes to be reimbursed and waived on two properties up for development by a local community development corporation.

Plainfield Community Development Corporation Executive Director Lewis Hurd told the council the waiver on properties on Berckman Street and Watson Avenue had been discussed two or three months ago. The CDC is the city-contracted developer of the properties through the Neighborhood Stabilization Program, which is aimed at providing affordable housing to low- and moderate-income persons.

Councilman Adrian Mapp asked Acting City Administrator Al Restaino to explain the resolution Monday, but Restaino said he couldn't, as it was his first day on the job. (Mayor Sharon Robinson-Briggs designated him acting city administrator for 90 days effective Oct. 7.) Mapp suggested that the resolution not be placed on the Oct. 15 agenda, as it would result in refunding of tax dollars to the CDC, which he said is not tax-exempt. He asked the administration to take another look at the request, and Corporation Counsel David Minchello said he wanted the tax assessor to "weigh in" on it.

The two addresses sounded familiar to Plaintalker. A check with Tax Collector David Marshall confirmed that both were on the list for Thursday's tax lien sale. According to the list, the PCDC owed $3,952.17 in 2012 back taxes for the Berckman Street property and $3,241.21 for the Watson Avenue property. The administration needs to see how that fits into the equation

The resolution was offered by the city's Office of Economic Development, which is in effect being disbanded as its two employees are expected to be laid off in November. If NSP projects are being monitored by this office, it is yet another issue for the new administration to deal with in 2014.

The PCDC is not the only community development corporation in Plainfield. Thinking about it later, Plaintalker came up with about six others, all of which may have dealings with the city for housing or other projects. If any special tax consideration is given to PCDC, a precedent will be set. So beyond dealing with PCDC's request, any new administration will have to become familiar with these other CDCs and what projects they have in the pipeline.Whatever entity in the new administration is charged with monitoring economic development, getting to know the CDCs as well as private developers will be part of their homework.

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