The Village of Cobleskill Tuesday became the first to agree to a proposed PILOT for Guilford Mills buyer Green Recycling Solutions International.
As outlined for Mayor Linda Holmes and trustees Tuesday by Schoharie County Treasurer Bill Cherry, who's put together the sale, GRSI would pay $60,000 the first year of the 10-year Payment in Lieu of Taxes plan to the four involved municipalities: The village, town, county, and Cobleskill-Richmondville Central School.
After that, payments would begin escalating; at year 10, GRSI would be paying a total of $210,000.
The village, town, and county have received nothing in taxes from Guilford Mills for years.
C-RCS has been getting $107,000 a year, thanks to State Education law, and in year one of the proposed PILOT would see that drop to $29,442.
All four would need to approve the PILOT; C-R is considering making a counter-offer.
Mr. Cherry said that GRSI would like to have the PILOT in place before closing on the 14-year-vacant property site-hopefully as soon as December-even if it's not in writing.
"Governor Cuomo and Empire State Development are really hoping to make Cobleskill a big part of its economic program for 2015, so timing is important," Mr. Cherry said.
"I think we could still close, as long as we know everyone's on board. I'm hoping that we all sign on. It's our best chance to do something with that building and there are job benchmarks built in."
Those benchmarks include the creation of 200 jobs in the first two years of operation and 300 jobs by year three.
Trustees asked what would happen to the PILOT if those benchmarks aren't met and Mr. Cherry said it depends.
If GRSI is close to the required numbers and is showing good faith, he said, likely the county will work with them.
But if it simply doesn't happen, he said, under the contract he's negotiated, the county gets the building back-with all of the improvements, expected to be worth about $4.5 million.
"We think we have all of the safeguards in place," Mr. Cherry added.
Mayor Holmes and trustees unanimously approved a resolution supporting the PILOT; the formal paperwork will follow once Mr. Cherry's gotten the approval of the other three partners.
The issues went to the Board of Supervisors Friday and they also agreed to sign onto it unanimously.