Clawback Intake More Than Doubles Since August as Five Developers Settle in Full; City Council Takes Decisive Step to Return 77 River Street to Regular Tax Rolls

Mayor Caseen Gaines and the Hackensack City Council announced today that the City has recovered approximately $3.6 million in unbilled and past-due commercial Payment in Lieu of Taxes (PILOT) revenue, while advancing an ordinance to terminate the tax-exemption agreement for 77 River Street, the property housing GOAT Climbing Gym.

The actions mark a major milestone in a sweeping municipal audit initiated by the governing body to clean up City finances, enforce long-ignored agreements, and ensure commercial tax-exempt properties contribute what they owe to Hackensack taxpayers.

“We promised Hackensack residents that the days of unchecked developer giveaways were over,” said Mayor Caseen Gaines. “Our predecessors generously handed out tax exemptions, then failed to enforce those agreements, leaving our homeowners and small businesses shouldering the burden. Reclaiming approximately $3.6 million and taxing action to address non-compliant developers restores financial fairness and ensures they pay what they owe.”

Council Moves to Revoke Tax Exemption for 77 River Street

At its Tuesday, October 6 meeting, the City Council introduced an ordinance to formally terminate the financial agreement granted to Hecker Holdings Urban Renewal LLC, owner and operator of the 77 River Street property.

Under state law and the property’s 2020 agreement, entities receiving tax exemptions must submit annual financial audits from an independent Certified Public Accountant. Because annual payments to the City are calculated directly from gross revenue, an independent audit is the only legal mechanism the City has to verify that the municipality receives the correct amount.

The decision follows extensive outreach from the City, dating back to informal advisory notices issued in April, formal default notices sent in June, and final written warnings in August.

On August 27—the day before the City’s final compliance deadline—Hecker Holdings submitted financial documents. However, the filings failed to provide the required independent audits for 2023, 2024, or 2025. Instead, the owners provided internal bookkeeping statements that lacked third-party certification or verified assurances.

Without an independent audit, the City cannot calculate an exact final balance. However, based on the preliminary figures Hecker provided in August, City officials estimate the property owes at least $25,000 in arrears and statutory interest.

If the Council finalizes the termination, 77 River Street will be returned to the regular property tax rolls. That shift will raise its annual contribution from approximately $56,000 under the discounted PILOT structure to an estimated $88,000 under standard local taxation.

“We have tremendous respect for Liz Hecker and the energy GOAT brings to Hackensack,” Mayor Gaines added. “They built an incredible facility, and we want them to continue operating and thriving here. But receiving a tax break from the public is a privilege, not an entitlement. We cannot ask everyday homeowners who pay their taxes on time to subsidize a commercial property that fails to provide legally mandated audits. Our job is to protect Hackensack taxpayers and ensure the law applies equally to everyone.”

Citywide Enforcement Yields Millions for Taxpayers

The enforcement action at 77 River Street is part of a broader, council-driven audit that examined developers’ self-reported financial statements alongside the contractual terms of each municipal agreement.

The audit originally uncovered $5.4 million in back payments dating back to the previous administration’s tenure, a figure that climbed to $6.7 million by August as statutory interest continued to accrue.

Today, that initiative is delivering concrete results across Hackensack:

• Approximately $3.6 Million Collected: Reclaimed revenue has more than doubled from the $1.7 million collected as of August, returning vital dollars to municipal accounts.

• Five Properties Paid in Full: Five commercial developments have completely cleared their accounts by submitting certified audits, settling all outstanding service charges, and covering accrued statutory interest in full compliance with the law.

• Active Discussions Ongoing: The City continues to work with several other developers to bring their accounts current. Officials emphasize that remedies such as municipal liens or contract terminations remain available.

“The audit findings point directly to past administrative neglect,” said Deputy Mayor Agatha Toomey. “Without proper oversight in place, our residents were left footing the bill. We are fixing those systemic issues, protecting essential services, and reinvesting every reclaimed dollar into smooth streets, neighborhood parks, and a more affordable Hackensack for everyone.”

A public hearing and final council vote on terminating the financial agreement for 77 River Street will take place at the Hackensack City Council meeting on Tuesday, October 20, 2026. The formal meeting begins at 5:30 p.m., with the public portion anticipated to open at approximately 6:30 p.m. in the Council Chambers at Hackensack City Hall.