Hackensack Uncovers $5.4 Million Tax Scandal: City Demands Missing Millions from Major Developers
the staff of the Ridgewood blog
Hackensack NJ, A massive forensic audit has sent shockwaves through Hackensack, New Jersey, revealing that over a dozen major real estate development projects owe the city a staggering $5.4 million in unpaid revenue.
The missing funds stem from uncollected payments under PILOT (Payments in Lieu of Taxes) programs—financial incentives originally designed to spur downtown growth and provide tax relief to hardworking residents. According to local officials, those promised tax breaks for regular homeowners never materialized because the money was simply left uncollected for years.
The 30-Day Ultimatum: Pay Up or Face Termination
Hackensack’s new administration is drawing a line in the sand. Joseph Ranieri, the city’s special redevelopment counsel, has issued formal notices giving delinquent developers a strict 30-day window—ending on July 28—to pay their outstanding balances in full, with interest, and submit missing financial documentation.
If developers fail to comply, the city warns it will move swiftly to terminate their lucrative financial agreements and pursue aggressive legal action.
“We want the developers to comply and give the city what we are owed and be held to their statutory obligations, just as residents and small business owners are,” said Hackensack Mayor Caseen Gaines.
How Did This Happen? Unenforced PILOT Agreements
The financial discrepancies were uncovered by auditing firm Wielkotz & Company, brought in after Mayor Caseen Gaines and his administration took office. The audit pointed directly to a lack of oversight during the previous administration of former Mayor John Labrosse, who heavily championed the use of 28 PILOT agreements as an economic centerpiece for downtown development.
According to Mayor Gaines, the agreements were completely unenforced. Even worse, officials note that the $5.4 million figure is likely a conservative estimate. State law requires developers to submit certified audits annually by April 1, yet multiple developments are years behind on their paperwork. One project has failed to provide required documentation for two years, while another has neglected its filings for three years.
What are “True-Up” Payments?
The bulk of the millions owed comes down to missing “true-up” payments. These are mandatory, year-end adjustments required when a building generates higher revenue than originally anticipated, triggering an additional payment back to the municipality. In Hackensack, some of this missing revenue dates as far back as 2018.
Taxpayer Relief Left in Limb
While some developers responded to initial warning letters sent in April—with one hand-delivering a $1 million check to City Hall and another agreeing to nearly $500,000 in back payments—many ignored the warning entirely, prompting the current legal escalation.
For local leadership, the crackdowns are about fundamental fairness.
“There are folks in this city on fixed incomes that have to figure out how they are going to pay their taxes and don’t have the luxury of being in arrears for almost a decade with no one coming to collect,” Gaines stated. “We’re not asking for developers to do anything more than what the law says.”
This is a developing story. Check back for updates as the July 28 deadline approaches and the city decides whether to release the names of the delinquent entities.
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Tags: Hackensack News, New Jersey Real Estate, Tax Reform, Local Government Corruption, PILOT Programs, Bergen County Taxes
