Montclair Approves Tax-Break Transfer for the Stalled Church Street Tower

Montclair's Township Council approved transferring the 30-year property tax abatement for the stalled apartment project at 59-65 Church Street to a new developer, Wayne-based Dobco Group, per October 5 reporting by Hoodline and Jersey Digs. The five-story building, planned for 74 apartments including 8 affordable units, roughly 3,936 square feet of retail, and a public plaza, is about 65 percent complete and has sat idle since its original developer exited the project. Here is what the decision means for downtown, for renters, and for homeowners.

When a long-stalled construction project finally gets a new owner and keeps its approvals, it is easy to read it as a done deal. The honest version is more complicated: the tax break transfer removes a major obstacle, but nobody has announced a construction timeline yet. Let's walk through what actually happened and what to watch.

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What happened

The project at 59-65 Church Street was originally developed by Lakewood-based Accurate Builders & Developers, which exited in September 2025 amid a $24.6 million foreclosure sale, per Montclair Local's coverage. That left the building, intended as a 74-unit, mixed-use property on the downtown corridor, roughly 65 percent complete and sitting idle through much of 2026. Montclair Local reported on August 12 that the council was advancing the transfer of the project's tax abatement, and the October vote completed it, moving the 30-year agreement to Dobco Group so the project can restart.

The tax break in question is a PILOT, short for payment in lieu of taxes. Under a PILOT arrangement, a project pays a negotiated amount in place of full property taxes, usually starting below the full bill and rising over the term of the deal. In exchange, the town gets a development it might not otherwise see built. When a project stalls, the question of whether that trade was worth it becomes very real, and that is part of why this transfer drew as much attention as it did.

Why this matters to homeowners and buyers

For renters and future buyers, the practical upside is simple: 74 additional apartments, including 8 affordable units, would add meaningful supply in a downtown where rental inventory stays tight. A completed building, with its ground-floor retail and public plaza, also supports the kind of foot traffic that keeps Church Street and Bloomfield Avenue vibrant.

For homeowners, the trade-off is worth understanding. A 30-year abatement means the building will not contribute its full property tax share for a long time, so the town leans on other ratables and existing taxpayers while the project phases in. That is a legitimate debate, and it is the same conversation playing out around other big downtown proposals, like the paused Lackawanna Plaza tax abatement. The key variable now is speed: the faster the building actually gets finished, the sooner the new units and retail are on the tax rolls in some form, rather than sitting as an unfinished shell.

What it means for neighbors

For people living near the site, a restart means construction activity, staging, and trucks on a downtown block again after a long quiet stretch. It also means the partially built structure, which has loomed over the corridor for a year, is likely to change quickly once work resumes. If you live within a block or two, it is reasonable to expect some disruption during active construction, along with the longer-term benefit of a finished building replacing an unfinished one.

What to watch next

• A construction timeline. The transfer clears the way, but Dobco has not announced when crews will be back on site. Watch for a public start date and a completion estimate.
• The affordable-unit count. The approved plan includes 8 affordable units; confirm the details survive construction, because that set-aside is a big part of the project's public benefit.
• Retail tenants. The roughly 3,936 square feet of ground-floor retail will shape what the block feels like once the building opens.
• Neighboring projects. How this tower lands interacts with everything else in the downtown pipeline, including the large Lackawanna Plaza plan.

The bottom line

The tax-break transfer is real progress for a project that has been stuck for more than a year, but it is a green light, not a completion date. For buyers weighing Montclair, it is one more sign that the downtown housing pipeline is still moving. For residents, it is a reason to keep an eye on Church Street, and to ask the same question council members will keep asking: how much tax benefit, and how soon?

If you are watching Montclair's market and want to talk through what new supply like this could mean for your buying or selling plan, I am happy to walk through it. No pressure, just honest local guidance.