GLOVERSVILLE - After a public hearing Tuesday, the Common Council may approve a Payment-in-Lieu-of-Taxes agreement for Overlook Ridge Apartments.
According to the PILOT agreement, Gloversville Apartments Housing Development Fund Company, Inc. holds title to the property for the benefit of Gloversville Housing Group Limited Partnership, which are associated with the complex on Santos Drive.
The 48-unit apartment complex was developed by Kinderhook Development and is called Overlook Ridge Apartments. The complex is off Northern Terrace and Lee Avenue on the new Santos Drive. The complex has eight one-bedroom, 32 two-bedroom and eight three-bedroom apartments available to low-income families in the four existing two-story buildings, according to the PILOT agreement.
According to the agreement, the city will exempt the property from local and municipal taxes, other than assessments for local improvements, 100 percent of the value of the property for 30 years.
The company will instead make annual payments in the amount of $28,000 per year, which equates to $600 per dwelling unit per year, the agreement said.
The payments will begin this year and will increase annually based upon an increase in the U.S. Department of Housing and Urban Development area median income, but not in excess of 3 percent per year. The PILOT payments will cover all local and municipal taxes and will be shared by the taxing jurisdictions on the same basis property taxes would be shared if it were fully taxed.
Also, the agreement states if any additional units beyond the 48-units are established the payment amount will increase accordingly.
The Common Council previously opted to use a $10,000 donation from the developer of the Overlook Ridge Apartments to the Recreation Commission although a resolution transferring those funds to the recreation account was tabled at the last meeting.
Also during the work session meeting Mayor Dayton King is scheduled to discuss various board appointments.
The Common Council and mayor's political gridlock over the Zoning Board of Appeals officially delayed potential action by the board last week although King said those appointments are likely to be made at the next meeting before the end of the month.
The vacancies are as follows:
Historic Preservation Review Board - one alternate position.
Planning Board - one alternate position.
Zoning Board of Appeals - two vacancies and one alternate position.
Recreation Commission - one vacancy.
Transit Commission - three to five vacancies.