“We get more money up front, and we have better stability with this plan,” said village attorney Alex Betke, who advised the board on the agreement. “We know exactly what we are going to get.”
Betke said the village will likely receive $168,000 more in the first ten years than it would under the standard agreement. Developers will pay $26,767.18 to the village, $51,544.75 to the school district, $15,180.89 to the town, and $6,507.18 to Ulster County, for a total of $100,000 per year, starting in 2012. Betke said the school district’s financial difficulties played a role in the village’s decision to go for more money up front.
The standard 10-year agreement would have included a 100 percent exemption from taxes on any new value for the property during the first three years (taxes on the current property value would continue to be levied), a 75 percent exemption for the next two years, and a 50 percent exemption for the last five years. The project would have also been exempt from mortgage and sales taxes during the construction phase.
PILOT stands for payment in lieu of taxes, the purpose of which is to provide incentives to developers. It’s administered by the Ulster County Industrial Development Agency. Changes to standard agreements must be negotiated and approved by all affected bodies, including the town, school and county.
Some trustees said they were told the project would not be receiving any tax breaks, and in turn passed that information on to residents who asked. Trustee Kelly Myers said developers promised not to apply for tax incentives when they appeared before the Village Planning Board.
“I feel violated,” she said.
But the project, because of its size and the amount of jobs promised, was eligible for the standard PILOT program, the parameters of which are set every few years on a countywide basis. The village can only negotiate a different agreement — it does not have the power to prevent a developer that qualifies from receiving tax breaks.
IN OTHER BUSINESS
After a year of discussion, the board passed Local Law 6 of 2010, which makes changes to two existing village laws governing trash cans. The resolution was passed by a split vote, with Mayor Bill Murphy and trustees Suzanne LeBlanc, Vince Buono, Jeannine Dirie, and Patrick Landewe voting for, trustee Don Hackett against, and trustee Kelly Myers abstaining.
The revision adds language to the village property maintenance law, stating that garbage receptacles cannot be placed at curbside before the afternoon prior to pickup, and must be removed within 24 hours.
The new law also changes the village solid waste law, increasing the maximum size allowed for a trash can in the village from 20 gallons to 100 gallons.
The law takes effect immediately.
The next meeting of the Village Board will be held Monday, November 15 at 7 p.m. at Village Hall.