CITY HALL HosBokeNn. New JERSEY July 6, 2016 Dear Council Members, Lam writing to clarify some issues related to the 7th and Jackson Street project thatis on the ‘agenda tonight. PILOT Contribution to Hoboken School District [As Mayor, lam publicly committing to annually pay the Hoboken School District an amount equal toa 25 percent portion of the City’s annual PILOT revenue from this project. (The school portion of our City’s total tax levy was about 24 percent). Asan alternative, the City could work with the School District to calculate the number of K-12 students added to the District as a result ofthis project and pay the School Choice reimbursement rate for each student on an annual basis (up toa maximum of 50% of the City’s annual Pilot revenue from this project) so that the District's possible increased costs due to increased enrollment from the project are reimbursed. With an understanding of the importance of our public schools, | am willing to provide the higher of these two alternative calculations each year through the budget process. I believe that it is essential to ensure that the School District shares equitably in the PILOT proceeds, despite the fact that State law dedicates 95% of the PILOT revenue to the City. This has never been done by any prior Administration in the history of Hoboken, and I hope the City Council will support this effort and make its position clear by passing a revised resolution at tonight's meeting. Here's suggested language for your consideration for tonight's resolution: ‘The City Council is publicly committing, subject to annual ratification through the budget process, to annually pay to the Hoboken School District an amount equal to the greater of (1) 25 percent of the annual PILOT revenue received by the City from this project or (2) the number of K-12 students residing in the project and attending Hoboken School District K-12 schools multiplied by the School Choice reimbursement rate for that year (up to a maximum of 50% of the City's annual Pilot revenue from this project).OFFICE OF THE MAYOR ing/H nc Ithas come to my attention that there is significant concern regarding the affordable housing provisions for this 7th and Jackson project. Please be advised that I have asked Fair Share Housing to provide their position on the possibility of making itso that the affordable housing for this project gives preference to Hoboken residents. I just had a follow up conference call with them and they have advised me that they have no legal position against Hoboken prioritizing Hoboken. residents for this affordable housing within the 7th and Jackson St. project. Fair Share Housing has committed to providing a letter to confirm this position. Based on these assurances, | support revising the agreement to prioritize the affordable housing for Hoboken residents for this project. With future projects, I think we may need to take a different approach so that we can receive COAH credit and to ensure that overall our City is open to new residents from different economic backgrounds. This project however has more legal flexibility than other projects will have, and if the Council wants to make this change tonight | will support it. Arevised version of the agreement to prioritize Hoboken residents for the affordable housing will be ready for the Council's consideration. fo by dn Zimmer