Full Property Tax from Development for Sleepy Hollow

Published 8 years ago8y ago • Bookmarks: 51

April 4, 2016

by Robert Kimmel

“I believe we ended up in a very good position, “ is the way Sleepy Hollow Mayor Ken Wray described the outcome of a vote taken by the Mount Pleasant Industrial Development Agency which approved a payment in lieu of taxes, (PILOT) requested by the developer of Edge-On-Hudson, at the former GM site.

The final PILOT does not include a potential property tax exemption, which originally concerned the village. The payment in lieu of taxes will allow the developer, Lighthouse Landing, LLC, to have the sales tax and mortgage recording tax relief which it sought, but property taxes will not be affected.

Support our Sponsors

“We are pleased that the village is comfortable that they will continue to receive their full amount of real estate taxes, as will the school district,” said Peter Johnson, who heads the development for Lighthouse Landing.

In January, it appeared that a clause in the developer’s original request for a PILOT left open the possibility of a property tax break that could reduce payments to both Sleepy Hollow and the Tarrytown School District.

At that time, Johnson denied that the PILOT application included “…any reduction in property taxes,”…for the village, the town, county or the school district. He contended that with the PILOT sought, the mixed-use development could save an estimated $20 million or more over a 15-year period, “…contributing to the viability of the project’s ability to generate enormous positive economic impact for the village, and surrounding communities.”

While the mayor said he “…would still prefer that the IDA not be involved,” he added that, “Through some very diligent work by the Board of Trustees, timely comments from Sleepy Hollow residents to the IDA board, and outstanding work by our attorneys we got the protections we needed.”

Under the PILOT, the land will be transferred to the IDA and leased back to the developer. The PILOT is a “full-tax agreement,” according to the mayor. The village will assess the property tax charges in the full amount “without any abatement,” and the payments will be billed by and paid directly to the village on the same schedule as village taxes.

The PILOT requires Sleepy Hollow’s consent were there to be any reduced payments requested, and the village will be able to sue should there be any efforts to reduce PILOT amounts without its approval, or if PILOT payments are not paid when due.

Should the developer default in making a PILOT payment, the IDA is allowed to end its lease, and the property would return directly to the village’s tax rolls.
“This means that we will get our taxes, as will the school district, from the developer as if the IDA were not involved, “ Wray explained.

Read or leave a comment on this story...

Support our Sponsors