Lawsuit filed to block 30-year $60 million tax exemption for developer

CRANFORD, NJ — On behalf of Cranford taxpayers and public schools, resident William Thilly has filed a complaint in lieu of prerogative writ on Friday, Jan. 27, in New Jersey Superior Court challenging Cranford Ordinance 2022-27, authorizing a payment in lieu of taxes for the 750 Walnut Avenue Developer Hartz Mtn. LLC for 30 years. The PILOT tax break is projected to cost taxpayers more than $60 million in tax revenue they would otherwise receive and take an estimated $54 million away from Cranford Public Schools.

The complaint alleges that the Township Committee is unlawfully using eminent domain to seize Cranford taxpayer’s monies without proper due process to subsidize a billion-dollar developer. Further, it alleges the Township Committee unlawfully donated tax exemptions to a for-profit developer standing to make a sizable profit at the expense of Cranford taxpayers when it enacted Ordinance 2022-27 in violation of the New Jersey Constitution.

The complaint alleges that, in violation of the New Jersey “Sunshine Law,” the Township Committee did not provide the public the opportunity to witness in full detail the deliberation, policy formation and decision-making of granting a 30-year tax break. Accordingly, Cranford residents were not able to comment or contest said policy formation and decision-making of the Ordinance.

“I filed this action to defend Cranford and its residents from having to pay unnecessary taxes, because the Township Committee has granted a billion-dollar developer an extra $60 million for the next 30 years,” Thilly said. “This PILOT program stands to take away over $54 million from our schools at a time when they need it most.”

New Jersey Superior Court Judge Lisa Miralles Walsh is the assignment judge in Union County who is likely presiding before the case.