GLOVERSVILLE - After a silent public hearing Tuesday, the Common Council decided to table the proposed Payment-in-Lieu-of-Taxes agreement for Overlook Ridge Apartments after the city attorney advised them changes need to be made.
"Overlook ideally wants a 30 year PILOT and ideally the city wants a 15 year PILOT, so the agreed upon compromise is that upon the expiration of 15 years, provided the existing mortgages on the property remain in place, the PILOT may be renegotiated," City Attorney Anthony Casale said about the changes.
The agreement that was before the council was for a period of 30 years.
According to the PILOT agreement that was before the council, Gloversville Apartments Housing Development Fund Company, Inc. holds title to the property for the benefit of Gloversville Housing Group Limited Partnership, which is associated with the complex on Santos Drive.
Casale said both of the associated boards will have to approve the updated agreement before it's approved by the council, but another public hearing will not be needed.
According to the proposed agreement, the city would exempt the property from local and municipal taxes, other than assessments for local improvements, 100 percent of the value of the property.
The company would instead make annual payments in the amount of $28,000 per year, which equates to $600 per dwelling unit per year, the agreement said.
The payments would begin this year and would increase annually based upon an increase in the U.S. Department of Housing and Urban Development area median income, but not in excess of 3 percent per year. The PILOT payments would cover all local and municipal taxes and will be shared by the taxing jurisdictions on the same basis property taxes would be shared if it were fully taxed.