Point Pleasant Beach could go "out of business" if it pursues - and loses - a tax battle with its premier tourist attraction, Jenkinson's Beach and Boardwalk, Mayor Vincent Barella says.
Barrella successfully compelled the Borough Council Tuesday to offer to settle a tax dispute with the boardwalk giant that could result in a $500,000-plus reduction in Jenkinson's annual liability.
Jenkinson's, which provides 5 percent of the seaside community's tax revenues, wants a $1 million-plus reduction in its assessment now that the weak economy has caused property values to fall, Barrella said.
The mayor warned Point Beach could lose even more - and pay hefty legal fees - if the town pursues a costly battle that, in a weak economy, it probably can't win.
"It could mark the end of Point Pleasant Beach," he told the packed crowd at the council's Tuesday meeting.
In response, Jenkinson's representatives said Wednesday the seaside attraction has been paying around $4 million an acre for its beach property since a townwide reassessment in 2007, calling it "grossly unfair."
Marilou Halvorsen, director of marketing for Jenkinson's Boardwalk, said the business has sought solutions that would be in the best interests of Point Pleasant Beach.
Other beach businesses, however, continue to pay much less - despite the fact that all local tourist attractions, including Jenkinson's, have been hurt by the weak economy, she said.
"It would be like owning a house and discovering that you are paying 10 times more in taxes than your neighbor," she said.
During the Tuesday meeting, Borough Attorney Kevin Riordan told wary council members and a frustrated crowd that agreeing to make the offer doesn't mean there is a "done deal" between Point Pleasant Beach and Jenkinson's.
Both Jenkinson's and, potentially, the courts have to agree to Point Beach's offer to reduce the attraction's assessment by 23 percent, he said. That process could take at least 45 days.
Several council members reluctantly agreed to make the offer, though they urged the town to take a more judicious approach to its budget and to "make cuts" that could reduce Point Beach's tax burden.
"It's a really tough pill to swallow, but if we lose, we could be paying double," said Councilwoman Kristine Tooker.
Barrella, however, said the borough has made many fiscally prudent decisions recently, leaving little room left to cut - other than laying off essential employees or forcing them to take pay cuts.
"It's very hard to look at somebody who's making $30,000 a year and tell them they have to take a signficant pay cut," he said.
Several residents complained that the council needs to be more fiscally conservative and show less favoritism toward Jenkinson's, despite its status as one of Ocean County's largest seasonal employers.
Resident Max Gagnon noted the borough pays for police and first-aid protection to deal with crime and other law-enforcement issues at the Boardwalk's bars and clubs.
"We have been awfully good to the Boardwalk in this town," he said. "We have to let those people know that they're costing us a lot of money.
By Tom Davis | Email the author | December 23, 2010 www.pointpleasant.patch.com
http://pointpleasant.patch.com/articles/jenkinsons-tax-appeals-could-mark-the-end-of-point-pleasant-beach-mayor-says
Compliments of Dawn Marie White Crossroads Realty Inc
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