the staff of the Ridgewood blog
HACKENSACK, NJ — In a major move signaling a shift in the city’s development strategy, the Hackensack City Council voted on August 11 to rescind three financial agreements—known as PILOTs (Payments in Lieu of Taxes)—granted to developers by the previous administration just weeks before leaving office.
The decision, championed by Mayor Caseen Gaines and his Hackensack Unites team, fulfills a key campaign promise to reevaluate generous tax abatements given to developers in recent years. While the projects can still proceed, they will no longer enjoy the long-term tax breaks that the former council approved in May and June.
“We welcome redevelopment that is reasonable and in the best interest of the community,” Mayor Gaines said. “You’re invited to build here—but not everyone gets a 30-year tax exemption.”
The Canceled Agreements
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Former Sears Property (436 Main St.) – A 300-unit project by RHR Hackensack Urban Renewal, LLC was granted a 30-year PILOT just one week after the May election.
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132–148 Main Street – A 100-unit, seven-story development by Sapphire Urban Renewal, LLC had a 15-year PILOT approved in late June.
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1 Essex Street – A 250-unit mixed-use project by Essex One Urban Renewal Company, LLC also received a 30-year tax abatement in June.
Developers Push Back
Developers and their attorneys strongly objected, warning of potential lawsuits and financial fallout for the city. Christopher Minks, chief legal officer for Russo Development (Sears site), called the move “ill-conceived” and “illegal,” arguing the deal would have generated $1.4 million annually for Hackensack—far above the current $144,000 in property taxes.
At 1 Essex Street, developer Ryan Sanzari said the $100 million project may not move forward without a PILOT, noting $2.6 million had already been invested.
Residents Applaud the Decision
Many residents praised the council for standing up to developers, arguing that Hackensack no longer needs tax incentives to attract projects.
“This is a valuable real estate market,” resident Pedra Del Vechio said. “If they want to build here, they can pay their taxes like I do.”
Others criticized recent redevelopment for lacking community benefits such as parks, schools, or public amenities.
Financial Impact
City officials maintain that while PILOTs bring in more than taxes on vacant lots, they still represent a discount compared to standard property taxes. For example, the Essex One project under normal taxation could generate $102 million over 30 years—significantly more than the $66.7 million projected under the PILOT.
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