GLOVERSVILLE - The Common Council will conduct a public hearing Tuesday on the terms of a tax agreement regarding the Kingsborough Apartments on South Main Street.
According to a payment-in-lieu-of-taxes agreement, 34 South Main Housing Development Fund Co. holds title to the property for the benefit of Kingsborough Apartments.
The apartments provide residential rental accommodations for people with low incomes. The apartments consist of about 40 residential rental units for individuals and families.
The Common Council is able to exempt the property of a housing project from local and municipal taxes, including school taxes, to the extent of all or a part of the value of the property.
The agreement states the city would exempt the property from local and municipal taxes, other than assessments for local improvements, 100 percent of the value of the property, including both the land and the improvements included in the project.
The tax exemption will take effect on the first tax status date following the acquisition of the fee title interest by the HDFC and will continue for a period of 30 years. The company will instead make annual PILOTs in the amount of $5,000 on or before Jan. 31.
The pending agreement states the PILOT payments will cover all local and municipal taxes owed in connection with the property and would be shared by the taxing jurisdictions on the same basis property taxes would be shared if it were fully taxed.
The agreement also states that if additional units over the established 40 apartments are added or other improvements are made, the PILOT amount will increase on a per unit basis.
The failure to make the required payments will be treated as failure to make payment of taxes and would be held under the same provisions of the law that apply to failure to make payment of taxes, the agreement says.
City Assessor Joni Dennie said the Kingsborough Apartments have been around as a not-for-profit housing location on Main Street for a while but recently made some renovations.
She said they were previously not paying taxes and didn't have a PILOT agreement with the City but has since offered a PILOT agreement.
"It's still being run the same as it's always been run, just now they are paying a PILOT whereas before they weren't paying anything," Dennie said.
Representatives of the Kingsborough Apartments didn't return phone calls seeking comments on the renovations.
The council may consider approving the terms of the PILOT agreement with the company during the meeting next week. The meeting will take place in the Council Chambers at City Hall at 6 p.m.