Montclair Advances Tax Break Transfer for Stalled 74-Unit Church Street Apartment Building
On August 12, 2026, the Montclair Township Council voted 5-1 to introduce an ordinance transferring a 30-year PILOT (Payment in Lieu of Taxes) agreement from the original developer to the new owner of the stalled Church Street project. The five-story, 74-unit apartment building at 59-65 Church Street has been sitting partially built since the original developer, May Montclair Urban Renewal LLC, was foreclosed on by a bank. The partially finished building sold at foreclosure for $24.6 million.
What is the Church Street project?
The Church Street project was approved by the Montclair Planning Board in December 2020 for a five-story, 74-unit apartment building on a 0.84-acre site that was formerly used as a department store parking lot. The project includes eight affordable housing units and ground-floor retail or commercial space. Construction began but stalled after the original developer faced financial difficulties, leaving a partially built structure at one of downtown Montclair's most visible intersections.
What does the PILOT transfer mean?
Under the PILOT agreement, the developer makes payments to the township based on the project's revenue rather than standard property taxes. The August 12 vote introduced an ordinance to transfer both the redevelopment agreement and the financial agreement from the original developer to the new owner, 59 & 65 Church St. Urban Renewal LLC. The ordinance still needs final approval before the PILOT transfer takes effect.
The tax break transfer is a critical step to get construction moving again on the stalled project. For the new owner, having the PILOT in place makes the financials work on a project that has already seen significant cost overruns and delays. For the township, getting this building finished means adding housing supply downtown, filling a prominent vacant construction site, and generating long-term tax revenue through the PILOT structure.
What this means for Montclair homeowners and buyers
For anyone following Montclair's real estate market, this project is worth paying attention to for a few reasons. First, the addition of 74 apartments, including affordable units, adds much-needed housing supply in a market where inventory is extremely tight. More supply can help moderate price pressure over time.
Second, a finished building on this site transforms one of downtown's most visible unfinished spaces. That matters for walkability, foot traffic for nearby businesses, and the overall feel of Church Street. A vibrant, occupied building at this address is better for property values than a fenced-off construction site.
Third, the project's long road to this point illustrates how complex development approvals and financing can be in New Jersey, even in a strong market like Montclair. That complexity is one reason housing supply is so constrained across the region.
What happens next
The ordinance still requires a final vote by the Township Council. If approved, the new owner can move forward with completing construction. The timeline for finishing the building has not been announced, but getting the financial framework in place is the key milestone that has been holding things up.
I will keep an eye on this one and update the story as the project moves forward. If you are looking at condos or apartments in downtown Montclair, or if you are curious how new development affects home values in the surrounding blocks, feel free to reach out.
The bottom line
Montclair took a meaningful step forward on the stalled Church Street project this week. The PILOT transfer gives the new owner the financial structure needed to restart construction on 74 apartments in the heart of downtown. Getting this building finished would add housing, fill a stalled construction site, and contribute to the long-term vitality of Church Street. I will be watching closely and sharing updates as the final vote approaches.
Source
This story is based on reporting by Montclair Local (August 12, 2026).
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I cover local real estate and development news across Bloomfield, West Orange, Montclair, and Essex County. If you hear about new construction, zoning changes, or neighborhood issues, I would love to hear about it.