Saturday, December 3, 2011

WDT: Locals Being Stripped of Exemption Authority for the Greater Good

There is something vaguely un-American about taking away from the duly elected officials the decision on who pays taxes. I think the phrase "taxation without representation" comes to mind.
That is why this matter of PILOT deals for housing projects is producing what the local paper terms "desperate actions for desperate times."
A move is afoot to strip local governments of the burden of approving enhanced PILOT agreements, and vesting that authority solely in the IDA or other agency authorized under state law to obviate taxes in the name of development.
The action is precipitated by a flap over the size of PILOTS for housing developers seeking to build complexes to answer a current "critical" housing situtation related to the increase in troops at Fort Drum and the resulting rent-flation for everyone in the Watertown area.
Economic developers say the electeds want to be relieved of the controversy and heat they take over PILOTS, although I am not sure there really is a lot of heat.
Lawmakers say the pro formas of these projects show massive profits for developers and that the scope of the exemptions is not warranted. Those on the other side say the development costs (sewer lines for example) on roads like Route 202 (The Wal-Mart Highway) are so high and the local town won't pay for the improvements, so a break is needed for the developer to do the work.
There are implicit claims the area may lose the affection of the Army and the golden goose that it provides to the local economy.
There are also subtexts like resentment over who is selling some of the land for the project on 202 and a scramble by lawmakers representing the Town of LeRay to get more construction in their part of the county.
Here is one way out for the electeds. The Drum boom fuels the sales tax explosion that has allowed local governments to make property taxes less and less a part of their funding of local government. Therefore, there is little harm to a couple of exceptions to normal PILOT guidelines.
I can find things about these proposals I don't like and things I do like, but having heard the briefings on housing and knowing that in life all things are not perfect, it's best to hold your nose, cut a deal and move on.
Watertown Daily Times JCIDA to send out policy that allows PILOTs for housing, approval without taxing jurisdiction consent

8 comments:

Anonymous said...

This sounds like the same law they broke (which was overturned) when they raised your tobacco license to $5,000 and is not legal in our state. By granting these PILOTS, they are usurping the voters of their right to set tax rates.

When Cuomo ran on reforming our state authorities I wonder if this is what he had in mind?

This should be settled once and for all by matching the 485-b tax abatement for anyone that invests in any real property in our county. No special cases or wind mill crap. One size fits all.

And if these proformas are so great then let us see them and decide for ourselves.

And you are right...I bet there is very little heat on our elected officials. Only a few of us care, just like every other issue.

Anonymous said...

Gee did the developer pay for rt. 202? NO We did nice to see a return on our investment.

Anonymous said...

What does DPW stand for? Dept of PUBLIC WORKS. Does a sewer line for development qualify as a PW? If the developer pays for a w&s line, the town will own it, so why shouldn't the developer negotiate for a tax break? And how many dollsrs are we talking about?

Anonymous said...

Almost like using a taxpayer paid lawyer for emminent-domain proceeding.

Anonymous said...

Did any of the rest of us pay for our roads or water/sewer/electric to be built? Why single out one road and make the developer pay for it?

Do any of your homes have expensive arc-fault breakers in them? Why make new homes use them if we don't make the old homes replace theirs?

Anonymous said...

Yes as a matter of fact, when I built years ago I had to put in the culvert and the driveway, have a well drilled and tested and the water pump installed. I had to have the septic tank and leach field installed and hooked up. I also had to have a pole set for the NiMo and the wiring hooked up.

Imagine the looks I would have gotten if I had asked for a PILOT.

Anonymous said...

what is reality? Power to the people. etc etc.

Does anything matter anymore, I mean really, and do the taxpayer even mean anything except for his check?

nope.

Dan Francis said...

"Not a perfect deal in life like with these PILOTS and taxpayers' money, or hold your nose and cut a deal and move on?"

Wow - what a show of leadership - are you sure you just got reelected, Jeff? Oh, City job and not county, I see, I see.

A lousy PILOT deal is NO deal and I can't believe you would say that let alone support a bad deal ... wait, oh, yes, I would.

Why not run for a County leg seat - you'd fit in nicely there with your view on PILOTs and about taxpayers' money, etc., or something about our best interests being at stake - um ... what's that, right?