Gloucester Township recently approved a settlement agreement with developer Jonathan Rubin of
Modani Properties, Lakewood, NJ, allowing construction of 204 townhouse units at a density of 9.54
units per acre. The agreement includes a Payment In Lieu of Taxes (PILOT), meaning the developer will
make discounted payments directly to the township instead of paying traditional property taxes that
support our schools.
What the Settlement Does
The agreement was discussed and approved in executive session, with little public explanation before
the vote. According to the June 9, 2025 Council Minutes, Council President Orlando Mercado stated that
the township’s main obligation is to amend the redevelopment plan to allow residential townhome
development on the property and to add two additional lots to the redevelopment area. In exchange,
the developer agreed to give up the right to build a warehouse.
However, the minutes make no mention of a PILOT, and when residents have asked about the length or
terms of the PILOT, President Mercado has not provided an answer. Residents were also not shown any
financial analysis comparing the cost of settling versus not settling before the agreement was approved.
The final approval on this deal — including the Resolution to add 1092 Williamstown Road to the
Redevelopment Area — will likely be heard at the November 10th Council meeting, just six days after
the election.
Why This Matters
Under a PILOT, the school district receives no revenue from the development, even though the children
who live there will attend township schools. The costs not covered by the PILOT will be picked up by
taxpayers. With an average cost of $16,000 per student per year and an estimated 0.3 to 0.5 students
per townhouse, the 204-unit development could bring 60 to 100 students, costing taxpayers $960,000
to $1.6 million every year. Over ten years, assuming the cost per child does not rise over 10 years, that could total as much as $16 million in school costs, while the developer pays reduced municipal fees and contributes nothing to education.
The Bottom Line
The developer receives zoning concessions and a tax break, while residents face higher school costs —
all approved with limited public disclosure and no fiscal justification.
Vote Column 5 on November 4 th .
Keith Gibbons and his team for Council (Nick Rehrig, Jen O’Donnell, and AJ Torres) believe responsible development should be transparent.
We deserve answers. We deserve transparency. We deserve better. We deserve change. We deserve
representation.
Vote Column 5 on November 4 th
