Residents: Revenue from Cherry Hill tax-break program should be shared with school district.

Money collected from two large Cherry Hill apartment developments as part of a tax-break program should be shared with the school district, several residents told Township Council on Monday night.

Council members voted unanimously in favor of agreements for five years of payments in lieu of taxes (PILOT) for 252 "luxury apartments" on Hampton Road and 370 "luxury apartments" on Woodcrest Road, near the PATCO Speedline station.

Under state law, the PILOT proceeds will be shared by the Township, which will get 95%, and Camden County, which will get 5%. None goes to the school district. No value has been set yet on the PILOT payments.

"How can we leave our kids without money?" asked Rick Short, of Chelten Parkway. "Why are we letting it all go to the township?"

Short urged the Council to postpone its decision on the ordinances authorizing the PILOT programs.

In Cherry Hill, 60% of every property-tax dollar goes to the school district with the balance mostly going to Camden County and the Township, according to state property tax data for calendar year 2021.

Pnina Mintz, of Robin Lake Drive, urged the Township to "reimburse the schools for every student that resides" in the projects. The rest of the taxpayers should not pay for their education, she added.

Council President David Fleisher said discussions already are underway with the school district to identify joint projects and allocate some of the PILOT funds to pay for those projects, which would be beneficial to the district and the Township. 

The developers' first payments on the PILOT programs are at least a year away because construction has not been completed, he said.

After five years, all taxing entities will share in regular property taxes paid by the developments, he explained.

"This is going to be generating much more in tax dollars for each of the entities than is currently occurring," Fleisher said. 

Each project has located in what the Township designated as an area in need of redevelopment. 

Fleisher said the PILOTs are required under a 2015 court settlement that prevented the development of what was the Woodcrest Country Club. The golf club was sold and has been renamed The Legacy Club at Woodcrest. The Township bought the development rights under the 2015 settlement.

Rena Margulis, of School Lane, asked: "How much will the PILOTS cost our schools?" Others who spoke also wanted to know the amount the district will forgo.

However, Fleisher said the PILOT values have yet to be determined because the payments will be based on a percentage of revenue from the projects and each has not been completed.

The two apartment developments are part of the Township's affordable housing program. 

The Hampton Road project, owned by FMP Hampton LLC, will set aside 45 units — 17.85% of all apartments — as affordable.

The Woodcrest Road project on the old Victory Refrigeration site is owned by FMP Mount Laurel LLC and will designate 56 units as affordable. The 56 units represent 15% of the total project.