Prism again delinquent on property taxes and misses start date for Downtown Edison Redevelopment Phase II - September 14, 2018
Prism continues its long record of not meeting contractual requirements of the Downtown Edison redevelopment project. The company still hasn’t paid its August 1 property taxes on its major property, 55 Lakeside Avenue, according to the town’s online database, which shows it still owes $42,399 plus interest penalties. In the last five years, Prism has been delinquent on its property taxes the vast majority of time – despite a requirement in redevelopment governing documents that it stay current on the taxes.
When I asked about the delinquency at the September 6 Town Council meeting, Business Administrator Jack Sayers said he didn’t know about it. Tax delinquency is an event of default, if the mayor decides to enforce the provision. At the meeting, Mr. Sayers finally disclosed after multiple Council meetings that Prism was also not meeting the contractual requirement to file its Phase II plans with the Planning Department within 90 days of signing the government documents. Mr. Sayers said the documents were signed June 1 – more than eight months after the council majority approved them last year.
Edison Phase II comprises 252 townhouses and a 44-unit affordable housing apartment building to the east and north of the Edison Phase I site on Main Street. The townhomes have a 30-year tax abatement and a Payment in Lieu of Taxes that starts at 75% of what the property taxes would be – producing nearly $8 million less revenue in the first seven years of the PILOT.