This is the exact thing so many people ask of our elected officials when they ask us to create incentives for business to start or move to the region. Tax incentives for new construction is the starting point. (original plan below)
Saugerties is poised to see yet another resurgence in economy stimulation on the local level rather than on the federal level. Some see it as a good thing, others, not so much.
The Freeman article penned by Ariel Girard, explains that the taxes on the property would remain unchanged for the first three years after the multimillion dollar hotel and conference center is built. Then increase over a ten to twenty year plan. Those details are in the paper. (another plan below)
I'm reading that the Town Board modified the standard PILOT for the project to better suit their needs. If that is what the board feels is necessary, then by all means, have at it. Thats why we hire them in the first place.
The quote in the paper by Mayor Murphy went: “It’s more money up front for the taxing entities. The village felt it needed to see revenue from the project from the first year it was built."
As a representative of Kingston, I'd prefer tax base development happening here, but as a Legislator, I welcome anything that helps the economy within our county. My desire of the IDA...Give your approval on the 18th and lets see something happen in Ulster County.
15 comments:
They are a for profit business what do they need a PILOT for? If they own and develop a piece of property they should pay their fair share of the required taxes.
I own a house that I have bought and developed and no one gave me a break on my taxes. Actually for every improvement I have seen a tax increase. So why are people like Hinchey & Co and Steve Aaron so special.
Sounds like giving tax cuts to the most wealthy of our society in the hope that they will throw a couple of scraps to the middle class workers. And we know how against that Hinchey is. Not a day goes by that he doesn't tell us how bad that is.
Regardless of the final plan, Saugerties, Kingston and the rest of the county need to open up to the possibility of building tourist friendly and housing developments to bring in the much needed tax revenue.
The NIMBY attitude that has held back our economy for so long has finally reached a point that our wallets are empty and we can nolonger afford to live here.
Build the Diamond Mill Resort, the Belleayre Resort and get something at the Noah Hotel site in Kingston. We shouldn't be relegated to the two hotels in the Ulster complex and the motels along the thruway.
The funding is ready, the unemployed are lined up for jobs and the taxpayers need relief!
I've often heard the phrase: "Don't let the perfect be the enemy of the good."
Complaining about Hinchey's nominal involvement and the Steve (parasite) Aaron connection is a tough pill to swallow indeed, but at this stage, I'd recommend getting hhis project started only because locals need construction jobs and the taxbase has been slipping.
IDA: hold your nose and accept the pilot.
Here it is plain and simple.
The taxes on the property ARE NOT REDUCED! The PILOT (payment in lieu of taxes) phases in the full tax payment over a series of years.
So in essence, the municipalities (school, village, town and county) and the tax paying public stand to gain jobs, economic development and community enhancement with an escalating tax base to boot. Sounds like a winner to me regardless of who has taken the financial risk to make this fly.
Locals need construction jobs, but how many of these construction jobs will be local people?
Make them pay taxes just like anyone else. Sure they are taking the financial risk, but they are also the ones that will reap the reward.
It is clear that his project was not financed from the owners, investors or credible lending institutions - so they are getting bailout money. How are the other hotels, catering halls suppose to compete with them? Interesting this was withheld until after election day!
@11:15 AM
Regsarding your comment on the Belleayre Resort boondoggle:
Our just-reelected County Comptroller needs to do a fierce, no-holds-barred investigation of IDA grant and PILOT largesse over the last decade. Did the businesses that received it actually create the FULL TIME JOBS they promised in their applications?
Only with that information can UC taxpayers decide whether these grants are worth the cost.
We could use a hotel near Belleayre! But we need an affordable, family-friendly hotel, in the lovely village of Pine Hill-- where the infrastructure already exists! Not a taxpayer-funded high-end, high elevation golf course timeshere developement that would overwhelm and monopolize this valuable public amenity and add huge infrastructure costs to the public tab.
In fact, this kind of developer welfare in the form of PILOTS, and grants to (supposedly) create full time jobs, actually COSTS tax dollars and creates more wealth only for the already wealthy private investors.
When you buy a house do they PHASE IN the full tax payment? It is no wonder so many of these businesses fail. They never had the money in the first place. What happened to the days when you either had the money or you didn't. Now government is expected to do everything for you including build your buildings. Speaking of which the last time I was up there, that nice building that the city built for Armor Dynamic still has no one working in it.
Kingston and Ulster have a long history of politicians solicting and accepting legal campaign donations from developers who get taxpayer financed grants, loans and tax breaks. Legal does not mean ethically correct.
Wasn't the Armour Dynamic project touted by Maurice hinchey? He is everywhere and no where. So Mo, where are the jobs? They promised a good amount of employees to be gainfully employed at that facility. I can only hope they are paying their taxes on this empty bldg especially since they didn't bring the jobs. Oh wait, was there a tax deal??
Gee, still waiting for CVS to open on Washington Ave., if ever.What a bunch of hollow promises all the way around. Skeptical of Saugerties project...I am trying not to be cynical but sometimes evidence speaks for itself.
I understand the frustration of the homeowners who disagree with PILOT programs. What is lost when we compare a recently purchased home vs a business project is that these businesses SHOULD meet certain targets to qualify. Those targets include construction and permanent job creation and economic development (that means payroll taxes, sales taxes income taxes).
I think the BIG QUESTION is are they meeting the targets that were represented in their original application for a PILOT and who is policing them?
Great Caesar's Ghost
Mike - check out the loans granted by the IDA or UCDC and check their payment status.
Approval complete! Get to work!
I am totally against it. It is communism to say it outright and world bank, saudi money? If there is opportunity in an area development would be natural. I do not care for AGENDA 21 projects and it creates more debt. As for jobs, it is short term, a hiring of canadian illegals maybe etc. and the surrounding communities have not benefitted by past pet projects. Look at the empty storefronts and foreclosed homes, empty rentals. This was known to Hinchey and company so they should take the liability when taxes are due for each homeowner.
According to the STATE IDA projects are not so beneficial.
http://www.osc.state.ny.us/localgov/pubs/research/idabackground.pdf
It should be banned.
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