Planning Board Resolution Memorializing Executive Drive AINR #20-09

increase the need for additional infrastructure, which in turn provides for added costs associated with constructing and maintaining the various roads, bridges, and sewer systems. Additional costs translate to higher taxes. When an office park is vacated, this “stranded asset” causes a significant loss in a community’s ratable base, forcing officials to make up the deficit in other places, often in higher property taxes. These costs speak directly to the affordability and livability of a municipality. These land use patterns come with an abundance of impervious surface, adding to their inefficiency. n. Mr. Pessolano testified that he conducted site visits on three separate occasions, once at around 2 pm on November 11, 2020, a second time from 12:30 pm to 2 pm on November 13, 2020, and a third time at around 8:45 am on November 18, 2020. During all three visits he observed that there were fewer than twenty-seven (27) vehicles parked in the parking lots servicing the buildings within the Study Area. o. An analysis of the Study Area’s existing land use, physical characteristics, history, Operational needs, and other considerations was conducted by the Planner using: (i) West Orange Township Tax maps and GIS data; (ii) tax and ownership records for the Study Area property; (iii) aerial photos of the Study Area property; (iv) West Orange Township Master Plan Reexamination Report and Updates; (v) field inspections of the Study Area building interior and exterior, site, and surroundings, most recently on October 9, 2020; (vi) discussion of property conditions with the property maintenance superintendent; (vii)West Orange tax assessment data; (viii) West Orange building and zoning records; (ix) tax appeal answers and rent rolls; (x) property leasing reports; (xi)property marketing material; and (xii) the contract of sale. p. Township tax assessment records show that the total assessment value of property has declined over the last eight years. During that time, the percentage of the tax base attributable to commercial properties has declined while the residential percentage has increased. As a result of the declining assessed value of the property in the Township, the general and effective tax rates have increased. q. The total assessed value of property within the Township classified as 1 (Vacant), 2 (Residential), 4A (Commercial), 4B (Industrial), and 4C

ip, the general and effective tax rates have increased. q. The total assessed value of property within the Township classified as 1 (Vacant), 2 (Residential), 4A (Commercial), 4B (Industrial), and 4C (Apartments), has decreased from $5.68 Billion to $5.57 Billion, an approximately 2% decline, in the period from 2012 to 2020. The assessed value of properties classified as commercial decreased from about $922 Million to approximately $844 Million, which represents an 8.4% decline. In 2012, about 16.2% of the Township’s ratable base was attributable to commercial properties. By 2020, the commercial portion of the ratable base had declined to 15.2%. Over the same time period, the percentage of the assessed tax base attributable to residential properties (consisting of single family and small multi-family units plus larger apartment properties) has increased from just over 82% to nearly 84%. These trends show that residential properties in the Township have been responsible for an increasing portion of the tax base as commercial properties decline in value. The sales price and the assessed value of all three properties has significantly decreased. These figures represent a decline in the Study Area’s value as a taxable asset to the Township of West Orange. (40908317: 4} 5