Assembly proposes PILOT program
City would receive $11.5 million annually as part of 10-year agreement with the state
ALBANY >> It remains unclear if a payment in lieu of taxes (PILOT) program will come to fruition at the state- owned Harriman campus, but a large group of local elected leaders, business owners, and non-profit organizations have voiced their support for the proposal.
This week, the state Assembly passed a bill that had language in it for a PILOT. A proposed PILOT in the city calls for annual payments of $11.5 million over the next ten years. This, however, would be contingent on a few things, including the
campus having a private tenant.
State Assemblywoman Pat Fahy, who sponsored a bill with state Assemblyman John McDonald, said this could be attained by consolidating lab space at the site. Another Assembly bill, sponsored by state Assembly Speaker Sheldon Silver, proposes revenue based on future development on the campus by New York State. And the state Senate bill’s sponsor is Neil Breslin.
But the proposal still needs to pass the state Senate and receive approval from Gov. Andrew Cuomo, whose office was immediately unavailable for comment.
The W. Averell Harriman state campus, located between Western and Washington avenues, was built in the 1950s and 1960s with office buildings that have about 7,000 employees occupying the 3 million square feet of space. The PILOT’s annual payment would apply to 1.75 percent of the total assessed value of the 330 acre property.
During a press conference on Thursday, Mayor Kathy Sheehan said that while the city has a budget of $171 million, its revenue only amounts to $154 million. She also emphasized that about 57 percent of properties in the city are not on the tax roll and that 80 percent of commercial property in the city is tax- exempt and largely owned by the state.
“I’ve stressed that our city is poised to benefit from an incredible renaissance. We have all of the ingredients to make Albany a vibrant, healthy, safe and economically viable community in which to live, work and play. But I have also stressed that we are a city in serious financial distress,” said Sheehan.
While delivering testimony for the state budget in January, Sheehan pointed out that the state currently pays $15 million annually to compensate the city for the 98.5 acres at the Empire State Plaza. Those payments will be reduced to $7.15 million in 2031 and will cease in 2033. Along with recommending the Harriman PILOT at the testimony earlier this year, she also recommended authorizing Impact Aid of 1 percent for stateowned property to recognize “the unique financial impact of being the Capital City”. That aid would increase revenue by $15 million.
Excluding the state university property, the state owns $ 3.1 billion worth of property in the city of Albany, Sheehan said.
Regarding the Harriman campus, Jeff Mirel, Executive Vice President of the Rosenblum Companies, said, “I think understanding the future of Harriman would really help private developers like us partner with the city, with the state and with other entities to not only develop but to begin smart growth. It’s an exciting time in our city’s history and we support this effort to turn one of our biggest challenges into one of our greatest opportunities.”
Another facet of Sheehan’s plan to increase city revenue is to partner with the city’s not-for-profits. Albany Medical Center CEO James Barba said at the press conference that the hospital already donates inkind services to the city and would be intersted in contributing more, which could include monetary donations. He said this would depend on future dialogues with the mayor and other area nonprofits.
Sheehan said they have also reached out to local colleges and other hospitals about possible contributions to the city’s treasury.