Property reval expected this year in Helmetta

BY SETH MANDEL
Staff Writer

HELMETTA — With the completion of several new housing projects and the pending redevelopment of the snuff mill, the borough is gearing up for a property tax revaluation.

The decision to conduct the revaluation was made in September 2004, and last month the Borough Council introduced an ordinance that sets aside $70,000 to fund the project.

“The revaluation has long been overdue in the borough,” Mayor Nancy Martin said. “We anticipate the reval starting as soon as possible this year.”

The last property revaluation in the borough occurred about 20 years ago. Since that time, Heather Glen Condominium Association, Sutton Place, Sutton Plaza, Lakeview Commons and Regency Walk have been built and occupied.

As of Oct. 1, 2005, the borough’s assessment ratio was 29.66 percent, meaning most real estate in town is assessed at far less than market value. The revaluation is designed to correct that and more fairly distribute the tax burden among residents.

Martin said the borough will follow a five-year payment plan to spread the cost of the revaluation.

“No municipality wants to incur the expense of a revaluation, but it comes down to what is the right thing to do,” the mayor said. “Once the revaluation is complete, all homeowners will be paying their fair share of taxes in the borough.”

The issue was brought to the attention of borough officials in April 2004, when residents of the recently completed Regency Walk development, off Maple Street, claimed that some properties were assessed incorrectly.

Regency Walk resident David Gavino, acting as spokesman for a group that appealed its assessments, said that the formula used by the borough’s tax assessor was inconsistent and had not been clearly explained to the residents. Ed Heindel, who was Helmetta’s assessor at that time, responded that his method was fair and that he had implemented the same formula used for all other borough properties.

Current Tax Assessor Ken Pacera said all the Regency Walk appeals were heard in June 2004, just prior to Heindel’s retirement. Pacera said the Middlesex County Tax Board upheld the assessments, though one reduction was made in the amount of $500 to correct a measurement discrepancy.

The Borough Council has more recently taken steps to update Helmetta’s tax maps, something that was required before issuing a request for proposals (RFP) to perform the revaluation. The initial review process at the state tax map review office was completed earlier this month, and the borough has selected Realty Appraisal Co., of West New York, to conduct the revaluation. Copies of the revaluation contract have been sent to that firm, as well as the Middlesex County Tax Board and state Department of Treasury for review.

The time frame for the revaluation will be up to the company performing it, Pacera said.

Martin said that before the revaluation is conducted, residents will have an opportunity to ask representatives of that firm any questions they have at a public hearing.

“We plan to have a town meeting so the revaluation company is able to explain the process of revaluation to all our residents, and we are hoping residents do attend,” Martin said.

Notices will be sent to all borough residents when the date of that meeting is set, she said.

The borough has also moved forward with the redevelopment of the former Helme Snuff Factory property. Highland Park-based developer Kaplan Cos. recently signed the redeveloper’s agreement, outlining the project’s schedule.

That project, now being called Heritage at Helmetta, which will include 225 age-restricted residential units along with commercial and open space areas, is expected to bring in more than $1 million in taxes annually. Martin said she believes the redevelopment project will help to stabilize the borough’s tax rate.