Government

Tax Exemption for Brick Sports Complex Becomes Campaign Fodder: Here Are The Facts

by
Daniel Nee
October 22, 2025

The Brick sports complex at the Foodtown property on Route 70, Sept. 2025. (Photo: Shorebeat)

As Brick’s mayoral campaign enters the final stretch before election day, a 30-year tax exemption for the Route 70 indoor sports complex passed by the township council in 2022 has drawn scrutiny from Republicans who have argued that the deal was meant to “give developers a break” on property taxes.

The reality is a bit more complicated. The exemption, which was passed in September 2022 before incumbent Mayor Lisa Crate assumed the mayor’s seat, was largely the culmination of a butterfly effect stemming from pandemic-era policies on the state and national levels. While the exemption does provide for a lower annual tax bill compared to what the owners of the site would pay under the traditional assessment system, the project would have been unlikely to move forward had the request not been granted. Mayor John Ducey and township council members, at the time, were faced with an ultimatum: grant the exemption, or risk leaving the site undeveloped and off the tax rolls for potentially years to come.

While Shorebeat’s reporting from the time took a deep dive into the inner workings of the developers behind the project, the more succinct version of the events began after the Covid-19 pandemic prompted federal and state officials to pass rent moratoriums for residential properties due to the economic uncertainty of the time. An initial group of investors in the project – then known as the “Sports Dome” – brought concerns about its financial viability to officials as the nation began recovering in 2022. The major investors in HFZ Brick, the holding company behind the complex, were exposed to significant losses during the pandemic since their investments in residential real estate were negatively affected by the federal and state rent moratoriums. HFZ Brick ultimately disbanded as a company, leading the remaining investors to form a new company called “LPC Sports II Urban Renewal LLC.”

The new company, Ducey said at the time, was unable to obtain financing to fund the project under the conditions to which the former company agreed. Financing would be feasible, however, if the township were to decrease the property’s tax obligation. Ultimately, LPC Sports II requested a 30-year tax exemption for its half of the Foodtown property, which uses metrics including a percentage of project revenue or a percentage of project cost, plus periodic escalators, to determine a payment in lieu of taxes, or PILOT, which would be submitted to the township annually instead of a traditional property tax payment.

The Brick sports complex at the Foodtown property on Route 70, Sept. 2025. (Photo: Shorebeat)

The matter drew scrutiny at the time – especially from residents who were concerned with state funding cuts to the township’s school district. Under a PILOT program, 95 percent of revenue collected in the annual tax payment goes to the township, while 5 percent goes to the county. While municipal governments have the option of dedicating a portion of the revenue to the school district, it is not required. In Brick’s case, officials at the time argued that since the complex would not generate any additional costs for the school system and would not increase the number of students – as a residential project may have done – there was no need to carve out a portion for the district. Instead, the township persuaded the development group to guarantee the school district some usage of the facilities once they were to be built.

The matter arose during a public comment portion of Tuesday night’s council meeting, with Crate reiterating that the tax exemption only applies to the sports complex – not the front portion of the site that houses an Aldi supermarket and is slated to also host Dunkin’ Donuts and Subway locations.

“The front end of the property is not exempt at all,” said Crate. “What’s soon to be Dunkin’ Donuts and a Subway that’s going to open there – that piece of property will also pay full tax. It will go to the school district, the fire district, everybody else.”

So, Who’s Paying What?

Shorebeat reviewed 2024 tax records – the latest available – from the Ocean County Board of Taxation after the meeting. The property, still known as the “Foodtown” lot after the supermarket that occupied it more than 20 years ago, is subdivided into two parcels. The front parcel is owned by a holding company linked to developer Jack Morris. The rear portion is owned by the sports complex group.

The Brick sports complex at the Foodtown property on Route 70, Sept. 2025. (Photo: Shorebeat)

In 2024, the front property had a combined land and improvement value of $4,467,800, which resulted in a property tax payment of $121,256. The rear portion, which was granted the exemption, was only taxed on its land value since, at the time, nothing had been built at the site. The land was assessed at a valuation of $2,473,000 and generated $67,117 in tax revenue.

The 2022 ordinance authorizing the exemption indicated the annual tax bill for the sports complex would ultimately amount to $280,000 over the 30-year period. This figure, however, is based on an actuarial table which takes into account the totality of the payments that LPC Sports II will make over the three-decade period. For the following year, as calculated at the time, the sports complex property would have generated about $350,000 in property tax revenue shared between the township, school district and county under the traditional method. Under the exemption, the company would pay $148,799.

Charts detailing the financial agreement between Brick Township and the owners of a sports dome facility. (Source: Official Documents)

The ordinance calculated a total annual tax savings of about $201,000. Ducey, at the time, acknowledged concerns from residents, but said the alternatives to passing the exemption may have proven worse.

“If there’s no deal, there’s no sports dome, and then we’re going to be dealing with the developer,” said Ducey, predicting uses unfavorable to many township residents, such as housing or mixed-use property, would be proposed for the site. “Experts looked at it. They looked at the numbers and projections, and it’s necessary. Without this, it doesn’t happen.”

Crate, responding to comments from the public at the time on the absence of a carve-out for the school district, touted the free access to the site.

“At least with the sports dome, they’re getting use of the facilities,” she said.

The exemption passed in a 5-1 vote. Crate voted in favor of the exemption, while the sole Republican member of council – who is running for re-election this year – cast the sole ‘no’ vote on the deal.

How About the School Deal?

The school district will have use of the complex through the township’s Recreation Department, however the schools will determine how the time will be divided up, Crate said Tuesday night. According to explanations provided at the time of passage, the agreement makes the facilities available during peak hours and off-peak hours from Sept. 10 through June 20 each year. Off-peak hours run from 9:30 a.m. to 4 p.m. Monday through Friday (non-holidays), and peak hours run from 4 p.m. to 9:30 p.m. Monday through Friday.

The district and township will share three complementary off-peak hours per week; two additional off-peak hours per week, subject to availability, at a discounted rate of 50 percent off the current official rates in place for that specific time and one peak hour per week, subject to availability, at a discounted rate of 25 percent off the current official rates.

The Brick sports complex at the Foodtown property on Route 70, Sept. 2025. (Photo: Shorebeat)

During the township or district usage, those entities may utilize one field section or court during the reserved hours. Reservations must be booked by the township between 24 and 72 hours prior to usage, and the facility will not be obligated to cancel any existing privately-held reservations already booked for the same time period.

Worth It?

Whether the exemption should or should not have been granted is in the eye of the beholder, however while the Brick facility will pay less than the owner’s other sports complex located in the Bergen County community of Waldwick, N.J., comparisons are complicated, especially since the Brick complex will be physically smaller than its North Jersey counterpart. The 2024 tax bill for the Waldwick facility was $383,388 – but based on a far higher valuation of $16,705,400. Comparatively, the ownership group will be paying a higher tax rate for the Brick site compared to the Waldwick site.

By the end of the 30 year agreement, the complex will pay an annual tax bill of $367,399 with escalators, generating a total of $7,320,633 during the exemption period.