The blue construction wrap at 59-65 Church Street has been part of the downtown landscape for years. But the long-stalled development is moving toward another restart, this time under new ownership and with a revised timetable for getting the job done.
At its August 11 meeting, the Montclair Township Council voted 5-1 to introduce legislation that would allow the project’s existing 30-year PILOT agreement to continue under its new ownership, according to Montclair Local’s coverage. It was an introductory vote, not final approval; a public hearing and another council vote are still required.
The ownership change followed foreclosure proceedings involving the previous developer. Township records show that S&N Developers acquired the property on September 2, 2025 and later transferred it to an affiliated entity, 59 & 65 Church St Urban Renewal LLC. The same records set June 30, 2027 as the deadline for substantial completion of the project.
What Is Actually Being Transferred?
PILOT stands for payment in lieu of taxes. Rather than paying conventional property taxes on a development’s improvements, the owner makes payments under a financial agreement with the municipality.
This particular PILOT isn’t being invented for the new developer. It already existed for the Church Street project. What is now before the council is the transfer of that existing financial arrangement to the project’s new ownership.
During the August 11 discussion, Second Ward Councilor Eileen Birmingham asked Planning Director Janice Talley about the township’s discretion over the transfer. According to Montclair Local, Talley indicated that the developer was entitled to the transfer under the existing agreement.
Why Erik D’Amato Voted No
That distinction matters. Council members weren’t starting from scratch and deciding whether this particular project deserved a PILOT. They were dealing with an agreement inherited along with a development that had already been approved, financed, partially built and subsequently foreclosed upon.
First Ward Councilor Erik D’Amato was the lone vote against introducing the ordinance.
As Montclair Local reported, D’Amato said the project “should have never had a PILOT” in the first place. He argued that a valuable downtown commercial site should have been developed under the regular property-tax system rather than receiving a long-term tax arrangement.
His objection raises a broader question that goes beyond this particular transfer: when should Montclair use PILOTs at all?
The project calls for a five-story building with 74 apartments and ground-floor commercial space on a prominent downtown property. D’Amato’s position is essentially that a site like this should be attractive enough to developers without special tax treatment.
Then There’s the Affordable Housing Math
Of the project’s 74 apartments, eight are slated to be affordable.
That requirement comes from the Hahne’s Redevelopment Plan governing this property. The plan dates to 2002 but has been amended repeatedly, including in 2019, when Montclair specifically revised it to allow this mixed-use project. (Council Meeting Minutes)
That history is important because Montclair’s broader inclusionary-housing rules generally impose a higher affordable-housing percentage on qualifying new residential development. This property, however, is controlled by its own redevelopment plan.
So the interesting question isn’t simply why a building going up today is following a rule written in 2002. It’s why the redevelopment plan continued to provide a lower affordability requirement even after Montclair adopted a stronger townwide standard.
So When Does the Blue Wrap Come Down?
This is where the latest agreement gets more concrete.
Township documents require the project to be substantially completed no later than June 30, 2027. That’s a formal deadline written into the amended redevelopment agreement, not simply a developer’s projection.
There may be visible progress much sooner. Montclair Local reported that council members want the facade completed by October 31 and that Dobco has projected full completion around spring 2027. Those are separate from the contractual June deadline.
The proposed financial agreement also includes additional protections governing the project and future transfers.
But before the PILOT transfer becomes final, the ordinance introduced August 11 still has to return for a public hearing and final council action.
