Teaneck Blog

Casting a wary eye on Teaneck politics and municipal affairs

Wednesday, May 24, 2006

Is Teaneck overrun with religious institutions?


Most of the time, peace and serenity reign supreme in Teaneck. From time to time, however, emotions run high and passions are inflamed. For example, when a religious institution or charitable organization seeks to acquire a new property in Teaneck for the purpose of expansion or relocation, it is often met with stiff resistance from neighbors and other community members.

There are two common arguments that the opposition usually advances to oppose the new development-
  1. The proliferation of religious or charitable institutions in Teaneck has already taken so many properties off of the tax rolls that giving up another ratable unduly harms the overburdened Teaneck taxpayer
  2. Granting permission to a religious or charitable institution to move in will change the character of the neighborhood/alter traffic patterns/create noise and light pollution, etc.
The latter of these arguments, of course, is a neighborhood matter for the Zoning Board to rule on, taking into account the particular circumstances of each case.

The former argument, however, is a powerful one that renders this issue a matter of concern for residents throughout Teaneck, if its assumptions are correct.

Let's look at the facts. According to records from the Bergen County Tax Assessor, Teaneck currently contains 73 properties classified as "Church & Charitable Property." Of the 69 other municipalities in Bergen County, only Hackensack has more. Of course, since Hackensack and Teaneck are the two most populous towns in Bergen County, this may not be so remarkable. After adjusting for population using figures from the 2000 Census, it turns out that Teaneck ranks 8th in Bergen County in the category of "Church & Charitable Property" (FYI, Englewood, Midland Park, Closter, Cresskill, & Franklin Lakes are the top 5 most religious -- or most charitable -- municipalities in Bergen County according to that measure).

It might be argued that this analysis doesn't really capture the actual taxation effect of these properties. A given municipality may have a large number of religious institutions, but if they are all located on small lots in an undesirable part of town, their tax exemptions probably don't take much of a bite out of the municipality's revenues. So one may really need to look at the value of the religious and charitable properties that are removed from the tax base relative to the total value of the taxable properties in a given town in order to see how significant they are.

Using this approach and relying on 2005 data from the New Jersey Department of Community Affairs' Abstract of Ratables, Teaneck ranks 9th in Bergen County in terms of the magnitude reduction to the potential tax base by religious and charitable institutions (and 177th out of 566 municipalities statewide).

How much is the Teaneck tax base directly* impacted by religious and charitable institutions? If all religious and charitable institutions in Teaneck were suddenly obligated to pay taxes based on the assessed value of their properties, Teaneck would collect an additional 1.9% in property taxes. The state average for this metric is 1.6%.

This suggests that the critics may be right that this is an issue worthy of consideration in Teaneck, though not an area where Teaneck is at any kind of extreme.



* I say "directly" because it is difficult, if not impossible, to quantify any enhancement to the value of the dwellings and commercial properties in Teaneck on account of their proximity to houses of worship or other charitable institutions.

8 Comments:

At 7:23 AM, Blogger esther said...

For many, the concern is the anticipated growth trajectory over the next few years. If you compare growth in the sheer number of religious institutions across towns in Bergen County, Teaneck is probably among the highest.

The other issue which is of concern to many Teaneck residents is that congregations are convert single family homes into religious institutions. If you look at other towns in Bergen County, zoning regulations tend to prohibit placement of institutional buildings smack dab in the middle of a single family neighborhoods. Congregations in Teaneck have successfully petitioned for zoning variances to permit construction of religious buildings in inappropriate places - the most egregious of which is Young Israel, which in my opinion is an aesthetic abomination and completely inappropriate and out of scale with the neighborhood.

 
At 12:26 AM, Blogger Teaneck Blog said...

I think you touch on a good point. We may not be at the critical point yet, but if the pace of conversion of taxable property to non-taxable use picks up, we could get there.

At this point, however, it looks like that anticipated growth trajectory is just speculation. It may well prove to be correct speculation, but I went back to prior years' data and did not see evidence that Teaneck has been losing a significant portion of its tax base to religious or charitable use (though the 2005 proportion is marginally higher than the 2003 number). I do need to study the rate of change angle further, though, and I do hope to look at it against that of other communities in Bergen County.

 
At 9:17 AM, Anonymous Anonymous said...

I think what you are forgetting is that many of the religious insitutions attract new residents, which in part fueled the rapid value of homes. Look at the Young Israel- in 1998 many, if not all 3 bedroom 1 1/2 baths homes were available for under $200,000. Fast forward 8 years and those same homes are $425,000. Did real estate overall go up? yes! did tiny little houses with antiquated electric more than double countywide- NO! So why in Teaneck did this happen? Because many people, especially Orthodox Jews must live in close proximity to a house of worship, thereby increasing the demand and the price. If you do a simple study of the amount the township loses in taxes for removing the single structure compared with the increase in taxes for all the new purchases, renovations, new construction etc, it is a windfall for ALL OF TEANECK!

 
At 10:01 AM, Blogger Teaneck Blog said...

Very perceptive point. This is precisely what I meant by my footnote.

In this case, it appears that the damage done to the immediate neighbors may be somewhat balanced by the stimulative effect the synagogue construction had on the neighborhood and the tax benefits that brought to Teaneck as a whole. The difficult question is how to balance the rights of the individual property owners with what may best for the community as a whole. Tough question.

 
At 3:39 PM, Blogger esther said...

Anonymous - While increased property values may represent a financial windfall for homeowners, for many there is a steep cost that has to be factored into the equation.

People who are not Orthodox are witnessing our community rapidly evolve into a place that is unrecognizable from the town in which we decided to raise our children. The diversity that attracted us to Teaneck is slowly eroding, as Orthodox families purchase 8 out of 10 homes for sale. Our Orthodox neighbors are often unwilling to (or are unable to) socialize with us. These newcomers are also fundamentally changing the fabric of our neighborhoods. They demolishing attractive older homes and building bulky, ostentatious mansionettes that overwhelm and are out of character with the surrounding community. These newcomers are also obtaining zoning variances to construct imposing institutional buildings in the heart of single family neighborhoods. Anyone who opposes the construction of these buildings are inevitably liken to Hitler. Eventually (and probably sooner rather than later), this new population will have gathered enough political power to completely disembowel the public school system in this town.

For the non-Orthodox, the increase in home values ends up being the "booby prize".

 
At 10:44 AM, Anonymous Anonymous said...

swurgle,

i tried to stick to financial facts or information that others who have more time can verify and confirm. your post was strictly opinionated. while you are entitled to your opinion, much of my original post was about the financial consequenses of taking properties off the tax rolls.

"They demolishing attractive older homes and building bulky, ostentatious mansionettes that overwhelm and are out of character with the surrounding community"

These can be one neighbors opinion and others may say cottage like 1500 sq ft house with poor landscaping hurts their value and asthetics.

Furthermore, because it is old, and many of the sellers never upgraded the home, must the seller be obligated to keep it? Many of these older homes NEED to be demolished. Go to some of the MANY open houses aronud town. There is a lot of garbage on the market.

 
At 10:52 AM, Anonymous Anonymous said...

and to another part of swurgles post.

if 8 out of 10 homes are purchased by orthodox, and many orthodox do not send their children to public schools, yet pay school taxes, shouldn't there be more (MUCH) money to spend on less children?

and where did you get the 8 of 10 figure. Many orthodox never buy in the northeast, southwest (south of cedar, west of the tracks) far south (south of degraw) or center (west engelwood to rt 4, queen anne to teaneck)

 
At 11:41 AM, Blogger PublicSchoolParent said...

I think swurgle raises some housing issues which may be tangential to finances but are still of great concern to many people in Teaneck -- issues which everyone, no matter what "side" they're on, talks about over the dinner table.

The town is changing in ways that make some people happy and others unhappy. Many of us moved to Teaneck in large part because of its diversity. I moved into Teaneck in 1992 and have never forgotten going into the hardware store that was on Cedar Lane (it's gone now, but it was near the Blockbuster) and chatting with the white "clerk", an older man who was retired but working there to pick up a few extra dollars. I mentioned that we had just moved in and he started talking about how great the town was, and that what made it so great was it's diversity. He said (I'm paraphrasing) that you move to teaneck "so your kids will go to school with kids who don't look like them"). I'm white, and to hear this from a white stranger in his 60s -- spontaneously -- was astonishing. It was the first time I had this experience, but in Teaneck it would not be the last. There are few other communities in the United States where you can say this.

Well, Teaneck is changing now. It's becoming less diverse, not more, and the Orthodox do not move to Teaneck so their children will go to school with people who don't look like them, and this saddens me.

I'm not making a statement about who has a right to do buy a house where, nor about the affect of the Town's changing demographics on the value of my house, I'm just saying that we pick a community for reasons greater than money, and that for me and others like me, Teaneck is at risk of losing what made it great.

 

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