M'burgh grocery developers still hoping for tax break

5/6/2016

By David Avitabile

Hopes remain that progress will be made this week toward a new grocery store in Middleburgh.
The developers of the proposed grocery store and condominium project on Route 30 want to move forward and are willing to entertain a new tax break proposal, according to Ron Filmer of the Industrial Development Agency.
He had hoped for some progress last week, but vacations and people out of town interfered.
This is an important week because a public hearing has been scheduled for Tuesday, May 10 on a proposed payment in lieu of taxes or PILOT on the project.
The hearing will either be on the original proposal, a revised one, or on the PILOT in general, Mr. Filmer explained.
The hearing could also be postponed for a second time, but "I hope that's not the case," Mr. Filmer added.
A new proposal would be the best route, he continued.
The hearing is slated for the village hall on Main Street starting at 6:30pm.
Officials from the IDA have been working with representatives from the village, town, county, and school, as well as the developers of the proposed project on a shorter payment in lieu of taxes.
The agreement could also have some different percentages.
The IDA has been acting on behalf of the four agencies to contact the developers to try to work out a new agreement, Mr. Filmer said.
Though no progress was made last week, some e-mails were sent back and forth and there is more optimism on an agreement for this week, Mr. Filmer said.
"I think everyone wants one."
The terms of the PILOT, the length and the percentages, have been the hang-up, he said, but adding that even those against the terms want a grocery store.
The initial 20-year tax agreement received approval from the Middleburgh town board in a split vote on April 14 and from the village board last month. The plan never went before the school or county boards.
Faced with an April 15 contract deadline on two properties, developers decided to halt the project, at least for now.
The county board would not be able to vote on the PILOT until its meeting on May 20. If all goes well, Mr. Filmer said the IDA could approve a PILOT within two weeks of the county meeting.
Noting that some people had problems with the length of the agreement, the IDA is proposing a 15-year PILOT with higher percentages, according to Mr. Filmer.
According to the original proposal, for the first five years the developers would continue to pay a total of $2,200 a year, with no loss or gain to the school, village, town, and county.
For years six through 10, the owners would be paying the current $2,200 plus five percent of the assessed value of the buildings, which are still to be determined.
The payments for years 11 through 15 would be the current $2,200 plus 10 percent of the assessed value of the buildings and for years 16 through 20, the payments would be $2,200 plus 20 percent of the assessed value.
After the end of the 20-year agreement, the property would be assessed at 100 percent of the value.