A long-stalled apartment project in downtown Montclair is finally moving again after sitting behind construction wrap for years, but it's coming with the same 30-year tax break that has fueled debate at town hall. The Montclair Township Council voted 3-2 on September 15, 2026 to approve the transfer of a payment-in-lieu-of-taxes agreement for 59-65 Church Street, clearing the way for Wayne-based Dobco Group to finish a 74-unit building that was only about 60% complete when its previous owner lost it in a foreclosure sale.
According to Jersey Digs, Lakewood-based Accurate Builders & Developers exited the project as part of that $24.6 million foreclosure sale, and Dobco Group has since stepped in to take over construction. Per The Montclair Pod, the developer is targeting full completion around spring 2027, while the township council has set an October 31, 2026 deadline for finishing the building's exterior facade.
The mixed-use building includes 3,936 square feet of retail space, a 2,773-square-foot plaza, and a small arcade along its western side, the Jersey Digs report notes. Inside, the 74 units break down into one studio, 34 one-bedroom apartments, 35 two-bedroom apartments, and four three-bedroom apartments, with eight units set aside for affordable housing.
Why the Affordable Housing Count Falls Short of Current Rules
Those eight affordable units work out to roughly 10.8% of the total, well under the 20% set-aside Montclair's townwide inclusionary zoning ordinance has required since 2018. The Montclair Pod's reporting states that municipal planning staff ruled the project's older site-specific redevelopment plan legally overrides the subsequent townwide zoning update, which is why the development isn't held to the newer standard.
That older plan traces back to the site's own winding history. The Montclair Planning Board approved a final site plan for the project in January 2021, and the township council granted the original 30-year PILOT to 65 Church Street Urban Renewal that December, according to Jersey Digs. Since then, the financial agreement tied to the property has been transferred at least three times, per the ordinance language the outlet reviewed, moving from 65 Church Street Urban Renewal to May Montclair Urban Renewal LLC before the property went into receivership and eventually passed to S&N Developers New Jersey LLC and then 59 & 65 Church St Urban Renewal LLC.
Council Members Cite Limits Under State Law
Jersey Digs reports that First Ward Councilor Erik D'Amato and Aminah Toler both voted against the final adoption of the legislation. That followed an earlier procedural vote, where the council advanced the PILOT transfer 5-1 on August 11, 2026, with D'Amato again casting the lone dissenting vote, according to the same report.
Montclair Planning Director Janice Talley and Second Ward Councilor Eileen Birmingham explained during deliberations that under New Jersey redevelopment law, a developer acquiring a foreclosed project holds a legal right to receive the transfer of an existing financial agreement regardless of what the council prefers, the Montclair Pod's coverage states. The newly updated PILOT ordinance does add some oversight going forward, requiring any future transfers of the tax agreement to go through a formal municipal application along with a fee equal to 2% of the annual PILOT payment — a response, the outlet notes, to the fact that the agreement was assigned to a prior developer entity back in 2022 without formal council review.
What the Tax Break Means for Schools and Rent Control
Under New Jersey's Long-Term Tax Exemption Law, municipalities keep 95% of annual PILOT revenues while Essex County receives 5%, and local public school districts receive nothing directly from the arrangement, according to an MPACT explainer document hosted on Squarespace. The arrangement also affects renters directly: newly constructed multi-family buildings that include affordable housing units are exempt from municipal rent control caps for up to 30 years after construction under state law, per the Montclair Property Owners Association.
That detail matters in a town where renters make up roughly 42% of the residential population, a demographic reality that has sharpened public scrutiny of high-density rental projects downtown, according to a Facebook video posted by Montclair Local. Demand for housing in the area remains intense regardless — Montclair's 07042 ZIP code ranked #2 on Realtor.com's list of Hottest ZIP Codes in 2026, as cited by The Montclair Pod.
A Site Montclair Has Tried to Redevelop for Decades
The Church Street property sits at the center of a redevelopment effort that Montclair Township has pursued for nearly two decades, per Jersey Digs. The site formerly served as the parking lot for the former Hahne & Co. department store, which closed in 1989 after operating since 1929 and was demolished in 2004, according to a PR Newswire release. That site was redeveloped as The Siena, a seven-story mixed-use building with 101 condo residences and 35,000 square feet of retail that opened in 2007.
The Church Street lot itself was zoned for residential use in 2018, after the township council amended the site area's redevelopment plan. Jersey Digs reports that Montclair had previously considered other uses for the parcel, including a hotel and an assisted living facility, before ultimately landing on the apartment project now under construction behind its familiar blue wrap.
