Warehouse Wisdom, by Stephen Francis

West Windsor residents are gradually starting to ask questions about the proposed warehouse development along Clarksville Road. There are major environmental and quality of life concerns causing residents to take notice. There is scant notice being taken of the economic risks concerning the warehouse complex.

RE: Tax Revenues, the mayor has been repeatedly asked to provide evidence of the 15-25 million in purported revenues. The mayor has refused to provide any evidence. We have 3 significant warehouse developments in the nearby towns of Robbinsville, Cranbury, and South Brunswick. In reviewing property taxes paid on 121 properties and the average taxes paid, including PILOTS (payments in lieu of taxes), for 2021 was $0.99 per sq ft. There is no reason to believe West Windsor is a better location and could command a 3x tax per sq ft over our neighbors. At best, I think we are looking at $5,000,000 in revenue out of the $170mm West Windsor residents and businesses currently pay in taxes.

More recent developments cast doubt on the economics of warehousing at a time when companies such as Amazon are looking to sublease or cancel leases on up to 30mm sq ft of warehouse space. With an economic downturn, I would not necessarily want to be acquiring more warehouse space.

It is always a bad idea for municipalities to become overly dependent on commercial and industrial ratables. Within Mercer County only Ewing, Lawrence, and Trenton have a higher percent of commercial valuations than residential.

Despite the red flags, Bridge Point 8 is currently the largest warehouse project in all of NJ, and nearing approval by the West Windsor planning board. 

Another fun fact: You could put 25% of the current housing stock of WW in these warehouses. The numbers don't lie.