HACKENSACK, NJ – Hackensack is turning up the pressure on developers who owe the city millions of dollars, authorizing accelerated tax lien sales and moving to strip one property owner of a special tax agreement after an audit uncovered widespread unpaid obligations, the Bergen Record reported Monday.

The City Council voted Oct. 20 to give municipal officials another tool to collect overdue payments from developers operating under PILOT agreements, short for payments in lieu of taxes.

A city audit in June identified approximately $5.4 million owed by more than a dozen development projects. By August, that figure had climbed to $6.7 million.

As of earlier this month, Hackensack had recovered approximately $3.6 million in previously unbilled and overdue revenue, according to city officials.

The new measure allows Hackensack to pursue tax liens against developers who remain behind on their required payments.

Under New Jersey law, a tax lien sale allows an investor to purchase a lien against a delinquent property. The owner can redeem the lien, but if it remains unpaid for two years after the sale, the lienholder may begin foreclosure proceedings.

The council also voted to revoke the PILOT agreement for Hecker Holdings Urban Renewal LLC, which owns the property at 77 River Street housing Goat Climbing Gym.

The property currently pays approximately $56,000 annually under its PILOT agreement. Returning it to the regular property tax rolls would increase that amount to approximately $88,000, according to city estimates.

Officials say the property owes at least $25,000 in overdue payments and statutory interest.

Under its 2020 agreement, the property owner was required to submit independently certified annual financial audits. Although financial documents were submitted just before the city's Aug. 28 deadline, officials said they consisted of internal bookkeeping statements rather than the required independent audits for 2023, 2024 and 2025.

PILOT agreements allow developers to make negotiated annual payments to municipalities instead of paying conventional property taxes. The arrangements are frequently used to encourage redevelopment, but developers must comply with their financial reporting and payment obligations.

Hackensack officials have been reviewing those agreements and working to recover unpaid amounts after discovering discrepancies earlier this year.

The city is continuing discussions with other developers who have outstanding obligations. Officials have identified tax liens, termination of PILOT agreements and lawsuits as potential enforcement measures.

Mayor Caseen Gaines said the city intends to continue pursuing the money.

“I am unspeakably proud of our collection efforts with those payments," Gaines said, "and we will continue to make sure we get what we are owed."