Eatontown Will Propose A Tax Deal For Monmouth Mall Owner Kushner Cos.

EATONTOWN, NJ — At their Wednesday night meeting, the Eatontown borough Council will introduce a proposal to give a PILOT to Kushner Cos., the owner of Monmouth Mall.

A pilot is a Payment in Lieu of Taxes and it is a payment to the town spread out over a long period, usually 30 years.

Eatontown Mayor Anthony Talerico said Wednesday afternoon he could not reveal the exact payment terms of the PILOT beforehand, but they will be unveiled to the public at the meeting, which begins at 7 p.m. in Council chambers of Eatontown town hall.

It remains to be seen if the Eatontown town council will approve the PILOT.

The PILOT is introduced Wednesday night, then followed by a public hearing and finally up for a final Council vote in late August or September.

Kushner and the town of Eatontown worked out the terms of the PILOT ahead of tonight's meeting.

Talerico said emphatically that what is being offered is not a tax break. Kushner will still make payments to the town of Eatontown.

But the PILOT will likely save Kushner Cos. millions of dollars as it attempts to embark on their dramatic overhaul of Monmouth Mall: Kushner plans to tear down huge empty swaths of the mall and turn it into a mixed retail/residential complex, called "Monmouth Village."

First Look At Kushner's Plan For 1,000 Apts. At Monmouth Mall

Kushner plans to build 1,000 one- and two-bedroom apartments at the mall. The entire second floor of the mall will be torn down and walking and biking trails will be built around the perimeter. These are luxury apartments, with a clubhouse, outdoor pool, fitness center and center green that would be open to the public and could be used for town festivals, gatherings, etc. Rental prices have not been released, but online chatter reports $2,000 - $3,000 a month.

Kushner Cos. was started by Charles Kushner, the father of former President Trump's son-in-law Jared Kushner. The Kushners are the developers of Pier Village in Long Branch. Charles Kushner and his wife still live in Long Branch to this day.

Kushner Cos. has filed multiple tax appeals for overpayment of taxes on Monmouth Mall

Talerico said the PILOT is necessary because the value of the Monmouth Mall property has plummeted "significantly" in the past 20 years. And Kushner Cos. has filed multiple tax appeals to the town of Eatontown, arguing they have overpaid in taxes and are owed money back.

"Kushner has filed many tax appeals, and if they are successful in court — even some of them — it puts the borough at tremendous risk financially," said Talerico. "It is a fact that the value of the mall property has decreased. And it is a large property in town."

For years now, Eatontown residents have witnessed the slow decline of Monmouth Mall: The J.C. Penney at Monmouth Mall closed last year, as did the Ruby Tuesday.

The current occupancy rate at Monmouth Mall is under 59 percent; 500,000 square feet of storefronts are empty, Kushner Cos. vice president Michael Sommer revealed in a public presentation last August about the status of the mall.

Kushner has warned for the past several years it is not sustainable to keep the mall open with such a high amount of empty stores.

What Kushner envisions for the apartments at Monmouth Mall:

• The apartments will be built in phases, so if there is lack of demand the project can be halted or made smaller.
• But Kushner is extremely confident all 1,000 units can be rented. "We feel strongly there is overwhelming demand for 1,000 units," said Sommer. "There is high demand for this type of product directly adjacent to the renovated retail that we are planning."
• It will come with 1,300 residential parking spaces, with each apartment unit guaranteed a parking space.
• Kushner is looking for a grocery store to open a 40,000-square-feet space at the mall, to serve the new apartment dwellers.
• It would also come with an outdoor "village/public green" and the developer would also like to build walking and biking trails around it. The village green would be open to the public and could host art festivals, etc.
• Kushner envisions Monmouth Village as a new type of "town center" for Eatontown, and would love to see small businesses such as nail salons or dry cleaners to open near the apartments.
• Nothing will be taller than four stories at the property. "We would prefer to keep this site at a consistent four-story height for these new multi-family buildings," said Sommer.
• Kushner would be "open" to a suggestion to build a pedestrian connection bridge across Rt. 36 to connect with nearby shopping malls across Rts. 35/36.

Last summer: First Look At Kushner's Plan For 1,000 Apts. At Monmouth Mall (August 2022)