Incentivizing New Development Opportunities
New York State’s Industrial Development Agencies (IDA) are authorized to provide financial assistance to a variety of projects including manufacturing, warehousing, distribution, commercial, mixed use, tourist destination facilities and others. Historically, the Fulton County Industrial Development Agency (FCIDA) has provided financial assistance to primarily manufacturing and warehousing type projects. The FCIDA Board took actions recently to change that historical trend.
The FCIDA Board, at its September 12, 2023 meeting, approved making changes to its Uniform Tax Exemption Policy (UTEP). This UTEP identifies the types of financial incentives the FCIDA can provide to eligible projects. One of those incentives is real property tax exemptions. These exemptions are provided through a Payment in Lieu of Tax Agreement (PILOT). The PILOT is an agreement between the FCIDA and company that identifies the real estate tax exemptions being provided to a project. Prior to September 12, 2023, the only PILOT the FCIDA offered was one based upon 485-b of NYS Real Property Tax Law. 485-b authorizes offering a 50% exemption on a project’s assessed valuation in year 1 with that exemption declining 5% per year over the next 10 years. The exemption ends at the end of year 10. The FCIDA had offered the 485-b real property tax exemption to all projects.
The FCIDA Board decided to amend its UTEP to offer different PILOT’s for different types of projects. The Board’s goal was to better incentivize new development opportunities in Fulton County beyond just manufacturing and warehousing type projects. The Board focused on the following types of projects:
-
Brownfields
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Adaptive Reuse
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Tourist Destination
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Housing
These four (4) types of projects can now be offered a PILOT with higher real property tax exemptions that will help make these types of projects more financially feasible. The FCIDA can now offer these types of projects the following PILOTS:
Brownfield Projects:
| Tax Year | Exemption |
|---|---|
| 1-7 | 100% |
| 8 | 75% |
| 9 | 50% |
| 10 | 25% |
| 11 | Pilot Ends |
Adaptive Reuse Projects:
| Tax Year | Exemption |
|---|---|
| 1-6 | 100% |
| 7 | 80% |
| 8 | 60% |
| 9 | 40% |
| 10 | 20% |
| 11 | Pilot Ends |
Tourist Destination Projects:
| Tax Year | Exemption |
|---|---|
| 1-2 | 100% |
| 3-4 | 80% |
| 5-6 | 60% |
| 7-8 | 40% |
| 9-10 | 20% |
| 11 | Pilot Ends |
Housing Projects:
The Agency shall make available to Project Operators of Housing Projects developed on case by case basis with the maximum term being 30 years.
In order to grant exemptions to Housing Projects, the FCIDA must issue two (2) findings:
- The proposed Housing Project will create employment opportunities in the County.
- The proposed Housing Project will prevent economic deterioration in the County.
By offering these four (4) types of development projects with stronger financial incentives, the FCIDA Board desires to see these types of projects initiated in Fulton County. These PILOT’s can help save developers significant dollars on their projects. Offering these stronger financial incentives is even more important in today’s challenging economic times with high inflation and high interest rates.
