Legislature mulls tax break for firm
Company plans to buy Gov. Clinton and Yosman Tower senior apartment buildings
In what could be considered a bit of trial by fire, the newly minted Ulster County Legislature could be asked to approve a 35-year tax break for the company planning to buy the Gov. Clinton and Yosman Tower senior apartment buildings.
A resolution authorizing the payment-in-lieu-of-taxes agreement is on the agenda for the Legislature’s reorganizational meeting scheduled for tonight.
Generally, the first legislative meeting of the year is reserved for housekeeping issues intended to establish the working framework of the Legislature for the year.
But this year, the Legislature — which includes six novice lawmakers — could also take up an issue that has seen its share of controversy.
Landmark Preservation LLC applied to the Ulster County Industrial Development Agency
for a 35-year PILOT, which would allow the company to pay less than the full amount of assessed property taxes paid to the city, the Kingston school district and Ulster County. The agreement would also give the firm a sales tax exemption and exemption from the mortgage recording tax.
The payments begin at $187,500 for the Gov. Clinton building and $181,000
for Yosman Tower, then increase 2 percent annually to $722,509.12 by year 35.
The lion’s share of the payments would go to the school district, followed by the city and the county.
Legislature Chairman Ken Ronk said while the county would receive the smallest share of the total amount paid, it would still be more than the county currently receives in property taxes.
The measure has already been approved by the school board and the Common Council, although neither
body passed the measure unanimously and the plan was met with opposition by some city leaders over the lack of information provided about the project, the speed in which it was being pushed and a lawsuit filed against the company by some of its partners.
Legislator Hector Rodriguez said he too is concerned about the lack of information provided to lawmakers as well as what he said is the foray of the Industrial Development Committee into the affordable housing business.
“I have a problem with the
IDA getting involved in affordable housing,” said Rodriguez, D-New Paltz, adding, “I’m definitely not going to support something if they’re refusing to share information to us.”
Rodriguez said while he has been told representatives of the firm will attend tonight’s session, he is “more than a little agitated,” that lawmakers could be asked to vote that same night. “That’s not necessarily good for public policy,” he said.
David Donaldson, DKingston, who sponsored the resolution, said there was an
initial push to have the measure approved by the end of the year over fear that some federal tax credits could disappear as a result of the new tax bill. With tax credits for those private activity bonds included in the federal bill, Donaldson said the urgency to pass the measure immediately has lessened.
Landmark Preservation, which is part of K&R Preservation LLC, wants to buy the 92-unit Gov. Clinton Building at 1 Albany Ave. and the 104-unit Yosman Tower at 295 Broadway for a combined purchase price that has been estimated at $17.9 million.
If the measure is approved by the Legislature, the Industrial Development Agency will hold a public hearing before deciding whether to approve the request.