Hackensack says millions of dollars that should have reached the city remain unpaid — and developers benefiting from special tax agreements now have until August 28 to settle their accounts or risk losing those benefits.
HACKENSACK, NJ — The City of Hackensack is stepping up efforts to recover $6.7 million in unpaid PILOT revenue and accumulated interest from developers, warning that those who fail to pay could lose the tax-exempt status tied to their redevelopment agreements.
The city has issued final written notices giving delinquent developers until August 28, 2026 to bring their accounts into full compliance. If they do not, officials say termination of their PILOT agreements — and a return to standard municipal property taxation — remains on the table.
From $5.4 Million to $6.7 Million
The dispute began after an independent audit ordered by Hackensack’s current administration uncovered more than $5.4 million in uncollected developer payments and interest, with some amounts reportedly dating back to 2018.
As additional audits were submitted and interest continued to accumulate, city officials say the amount now owed has climbed to approximately $6.7 million.
That figure includes more than $4.8 million in unpaid PILOT fees and nearly $1.9 million in accrued interest.
And the number could still rise.
City officials say several developers have not yet submitted mandatory annual financial audits, meaning the current $6.7 million estimate may not represent the final amount owed.
What Is a PILOT?
PILOT stands for Payment in Lieu of Taxes.
Under these agreements, qualifying redevelopment projects can receive property-tax exemptions and instead make negotiated payments to a municipality. They are often used by cities to encourage major redevelopment projects that might otherwise be difficult to finance.
But Hackensack officials argue that receiving such an incentive also comes with an obligation to make the agreed payments on time.
Mayor Caseen Gaines said tax exemptions for developers should be viewed as a privilege that works only when there is a real partnership benefiting local residents.
The city also says the interest being charged to delinquent developers follows provisions already contained in their financial agreements and mirrors the interest imposed on homeowners and small businesses that are late paying municipal property taxes.
Hackensack Has Already Recovered More Than $1.7 Million
The enforcement campaign is already producing results.
According to the city, cooperating entities have paid more than $1.7 million this summer, while two developers have fully satisfied Hackensack’s requirements.
But writing a partial check will not be enough for the others.
To be considered fully compliant, developers must submit required financial audits, pay all outstanding PILOT fees and cover the applicable interest.
Millions at Stake — and an August 28 Deadline
Some individual outstanding balances exceed $1 million.
Among the entities identified in reports based on municipal records are R & H Hackensack Urban Renewal, associated with Midtown Bridge, at roughly $1.13 million, and Waypoint Hackensack Urban Renewal Owner, associated with 435–439 Main Street, at approximately $1.05 million. Brickyard Urban Renewal is listed at nearly $949,000. (THE RIDGEWOOD BLOG.)
The message from City Hall is now clear: pay what is owed, complete the required audits, or potentially lose the favorable tax arrangement.
If the remaining developers fail to meet the August 28 deadline, Hackensack says it is prepared to consider available legal remedies, including revoking PILOT status and subjecting the affected properties to regular municipal property taxes. \
For a city that has experienced significant redevelopment in recent years, the dispute is becoming about more than accounting.
It raises a larger question: when developers receive major tax incentives to help transform a city, what happens when the money promised in return does not arrive?
Hackensack’s answer, at least for now, is that those agreements will be enforced.
Sources: City of Hackensack; TAPinto Hackensack.
By NJ RADAR Team