Why Verona Uses PILOTs

PILOTs can be a tool for smart, managed development. They provide the following benefits:

Incentivize development: PILOTs make certain projects financially feasible, giving the Township leverage it wouldn’t otherwise have.

Give Verona more control over project design: With a PILOT, the Township can negotiate fewer units, fewer bedrooms, lower density, and reduced impact on neighborhoods. Example: 885 Bloomfield Ave dropped from 60 units to 28 townhomes.

Support affordable housing compliance: Verona must meet state‑mandated affordable housing obligations. PILOTs help the Township meet those requirements without triggering massive, high‑density construction.

Keep more revenue local: PILOTs send 95% of payments to Verona and only 5% to Essex County, compared to ~16% under traditional taxation — giving the Township more resources to manage community needs.

While PILOTs cannot change the BOE’s 2% annual levy or close its structural gap, the Township and Board of Education share responsibility for serving Verona’s residents. Supporting responsible, transparent PILOT revenue sharing, when financially feasible and legally appropriate, reflects that shared commitment.

It acknowledges:

- The Township’s role in managing development and municipal services - The BOE’s role in educating Verona’s students - The community’s expectation that both bodies work collaboratively toward long‑term stability

A balanced, cooperative approach ensures PILOTs continue to be used as a development‑management tool while also supporting broader community needs, including the schools.