PILOT plan for apartment buyers?

Potential Gov. Clinton, Yosman Tower owners eye payment agreement

KINGSTON, N.Y. » The company planning to buy the Gov. Clinton and Yosman Tower senior apartment buildings could ask for a payment-in-lieu- of-taxes agreement that begins with a base rate of $346,015 and increases 2 percent annually.

Francine Kellman and Brian Raddock of K&R Preservation LLC met with the Common Council’s Finance and Audit Committee on Wednesday to introduce themselves and begin discussion of their 35-year payment-in-lieuof-taxes, or PILOT, request.

If approved, the PILOT would cover the combined taxes for both buildings, which are paid to the city, Kingston City School District and Ulster County.

City Assessor Dan Baker said the company still needed to meet with representatives of the school district, but hoped to have

a formal proposal for the Common Council next month.

The matter is also before the Ulster County Industrial Development Agency, which will hold a public hearing before making a decision.

Kathleen Digan, of Ostroff Associates, said K&R Preservation is “committed to keeping this housing affordable for the next 40 years. With purchasing the properties, they would do

significant upgrades such as new kitchens, new bathrooms, paint in the common areas, flooring, etcetera.” She said the company would also be willing to change the way motorists exit the Gov. Clinton property, which has been a concern for city officials.

Additionally, none of the residents would be displaced from their homes while renovations are made, Digan said.

The Gov. Clinton, at 1 Al-

bany Ave., was opened in 1926 and has 92 units. Yosman Tower, at 295 Broadway, was built in 1977 and has 104 units.

Landmark Preservation, which is part of K&R Preservation, wants to buy the two buildings from Granada Buildings before the end of the year. The combined purchase price is estimated at $17.9 million.

“This is a private sale with bonds and tax credits,” Kellman told the fi-

nance committee. She said both buildings need rehabilitation and the only way for that to happen is for the owner to refinance or sell the properties.

Raddock said in order for K&R Preservation to get the bonds and tax credits, they need a PILOT that goes along with the mortgage maturity on the properties. He also said it is possible the buildings could lose their Section 8 affordable housing status if the

properties are sold at market rate.

Minority Leader Deborah Brown, R-Ward 9, expressed concern about the city authorizing another PILOT on properties.

In response, Common Council President James Noble said the deal would guarantee at least $1,600 in tax revenue per rental unit.

Baker said that is more than some other affordable housing properties in Kingston currently pay.