
the staff of the Ridgewood blog
HACKENSACK, NJ — The newly seated Hackensack City Council, led by Mayor Caseen Gaines, is taking action to undo three controversial tax abatement agreements approved by the previous administration in the weeks between the May election and the council’s transition into office.
On Monday, July 14, the council introduced ordinances to rescind PILOT agreements (Payments In Lieu of Taxes) passed in May and June by the outgoing administration of former Mayor John Labrosse.
🏙 Why These Developer Deals Are Being Rescinded
Tax abatements and PILOT programs were key issues in the recent election, where the Hackensack Unites slate campaigned on a promise to reassess whether these agreements truly benefit residents. Gaines and his team defeated Labrosse’s ticket in a decisive victory, fueled by voter frustration over the city’s redevelopment push.
“Developer deals like these were the defining issue in the election that led to our historic, overwhelming victory,” Gaines said at Monday’s meeting. “During the transition, the previous administration refused to collaborate with us on these important issues. Tonight, we’re putting the will of residents first.”
📜 What Deals Were Approved Before the Transition?
The lame-duck council passed three major tax abatements after losing the May 13 election:
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May 20 – A 30-year PILOT for RHR Hackensack Urban Renewal, LLC to build a 300-unit project on the site of the former Sears store.
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June 24 – A 15-year PILOT for Sapphire Urban Renewal, LLC for a 100-unit, seven-story building on Main Street.
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June 24 – A 30-year PILOT for Essex One Urban Renewal Company, LLC for a 250-unit mixed-use project at 1 Essex Street.
Critics argue these eleventh-hour deals contradicted the election results and lacked public input.
🏗 Supporters vs. Critics of PILOT Agreements
The former administration justified these tax incentives, saying they were essential to spur investment in Hackensack’s struggling downtown. The resulting development, they argued, generated millions to improve parks and upgrade critical infrastructure like the city’s sewer system.
Former Deputy Mayor Kathy Canestrino defended the approach, saying:
“It’s not going to happen unless you do this… The only way you’re going to get this type of investment is to do PILOTs.”
But opponents counter that PILOT programs shortchange local schools, which see little to no revenue from these deals. Instead, 95% of PILOT payments go to the municipality and 5% to the county, leaving school districts without the funding they would otherwise receive from traditional property taxes.
Mayor Gaines questioned why a 30-year abatement was necessary for a prime piece of property like the Sears site, saying:
“They make a contribution, but what is lost is significant and outweighs what they are bringing in.”
🔄 What Happens Next?
The rescinding ordinances introduced on July 14 will now head to a public hearing and final vote on August 11.
Mayor Gaines emphasized that public input and transparency will guide the decision-making process moving forward:
“One of the things we committed to during the election was listening to the public. We’re looking forward to real community engagement — something that’s been lacking under the previous administration. Our ears are open.”
🗓 Key Dates to Watch
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Aug. 11, 2025 – Public hearing & final vote on rescinding all three PILOT agreements
Residents are encouraged to attend and voice their opinions on the city’s future development strategy.
Do PILOT agreements help or hurt Hackensack? This August, residents will have a chance to weigh in as the city reconsiders its approach to redevelopment and affordability.
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