Prism Capital Partners, the designated downtown redeveloper, is delinquent in its February property taxes for at least the fourth quarter in a row as of this morning, Tuesday, February 13, 2013. Tax delinquency is an event of default under the 2006 Redevelopment Agreement between the town and Prism.
Prism has not paid $108,211 in quarterly taxes on its 175 Main Street property, the former Edison Storage Battery Factory site. The company is planning a mixed-use luxury residential rental and retail project. Its property at 55 Lakeside Avenue, recently acquired at the conclusion of a foreclosure proceeding by its lender, is also delinquent on $108,190 in taxes. The company also owns several other parcels in the downtown redevelopment area.
The town provides a 10-day “grace period” following the tax due date, which expired Monday.
The 2006 Redevelopment agreement with Prism specifies that tax delinquency is an event of default which could lead to the town’s withdrawal of Prism’s exclusive right to redevelop. The township administration filed a notice of default to Prism last year on a previous delinquency. Prism promptly paid approximately $135,000 in back taxes and interest penalty to cure that default.
Prism is also appealing its tax assessment on 175 Main and other township properties.
I’m a West Orange Township councilman since 2010 and can be reached at firstname.lastname@example.org. A former financial journalist, I am a business communications consultant in my spare time.