Dunellen Seeks to Continue Revitalization Success of Downtown through Short Term Tax Program for All Property Owners

The Borough of Dunellen, incorporated in 1887, was centered around a newly built station of the Central Railroad of New Jersey.  Dunellen is located in the northwest section of Middlesex County, approximately thirty miles southwest of New York and sixty-five miles northeast of Philadelphia.  Encompassing one square mile, Dunellen has an estimated population of 7,600 persons.

Dunellen is a developed residential community with a central commercial area, running along North Avenue, Bound Brook Road, and Washington Avenue.  The train station, first built in 1867, and which was given the name “Dunellen,” is viewed as a key element of the redevelopment of the borough.  A Downtown Redevelopment Plan, first adopted in 2003 and amended frequently as needed up to and including 2022, provides for a walkable, pedestrian friendly downtown, with businesses and restaurants extending throughout the commercial area and residential buildings within walking distance to the train station.

Redevelopment Projects already approved in various stages of preparation and construction include the Art Color complex, which will consist of 130 townhomes for sale and 252 apartments for rent, including 58 affordable units which are counted as a part of the Borough’s Affordable Housing Obligation.  Another project, just recently approved by the Council, is a residential building, located at 120 – 126 North Avenue, consisting of thirty-three residential units, ground floor commercial space of over two thousand (2,000) square feet, and thirty-five parking spaces, including eight electric vehicle charging stations.  The building will also provide five affordable units, which will also be credited towards Dunellen’s obligation.

Dunellen is excited to offer a new program for current residents who live within the Redevelopment Area of the Borough – a Five Year Tax Exemption which will save property owners money when they make improvements to their home and businesses.  Tax exemptions are valuable to our residents, as they will reduce the taxable value of improvements made to property for a period of up to five years.

Some examples of projects for homeowners in the Redevelopment Area which are eligible for a tax exemption include adding an addition onto their home, upgrading the kitchen, or adding a new bathroom.  In these examples, the resident would receive an exemption on the first $25,000 in value added to your home.

If you are a business owner or own a commercial building in the Redevelopment Area, you could be exempt from the entirety of the value added to your property for a period of five years for projects such as adding a new storefront, upgrading the commercial kitchen, adding an outside seating area, or an internal remodel.

The construction of new buildings or conversions of existing buildings in the Redevelopment Area also qualify for the tax exemption.

Mayor Jason F. Cilento presented the program to the Borough Council which unanimously support it. Mayor Cilento noted, “These tax incentives will encourage property owners to renovate and remodel, and even build new properties in Dunellen in the Redevelopment Area. These projects may not have been undertaken but for the tax incentive and their construction will help beautify and update Dunellen’s downtown and continue our revitalization of our downtown area.”  After five years of the exemption, Dunellen will collect the entire tax assessment, which may not have been otherwise collected if the project had not been completed.  The new incentive does not have a negative impact on Dunellen’s overall budget, as these are taxes that have never been collected before.

In order to apply for these incentives, it is important to review the application, which is available at the Tax Assessor’s office, prior to beginning construction of the improvements.  Different projects have different deadlines for application.

For further questions or for an application on the program, please contact the Borough’s Tax Assessor, Dawn Guttschall, CTA, at dguttschall@dunellenborough.com.

In addition, please mark your calendars for Thursday, December 8, 2022 at 7 pm.  Dunellen will be hosting its second annual Mayoral Town Hall on Redevelopment at the Dunellen Senior Center in Columbia Park to discuss not only the Five Year Tax Abatement Program, but also the status of the other redevelopment projects in the area and how they are benefitting Dunellen. We will also be reviewing affordable housing obligations, payments in lieu of taxes, redevelopment agreements, and other planning initiatives in the Borough.  If you are unable to attend in-person, you may join virtually at a link that will be provided at www.dunellen-nj.gov, where it will also be made available post-town hall.