Orange County Industrial Development Agency (IDA) Chairman James Petro announced the approval of the new “Super Enhanced PILOT plan” at the May 2009 Board Meeting.
The new payment-in-lieu-of-taxes (PILOT) plan adds five more years to the ten years in the existing PILOT plan. It will be available for certain targeted industries and will allow those companies to have reduced property taxes for a term of 15 years. It begins with a 5% assessment on enhancements to existing property and matures to full assessment at the conclusion of the plan. This new program is another example of the creative approach being taken by the IDA to generate economic development in the county.
There is another component to the plan that should be good news to those developers with a history of building on spec. If a qualified company builds a spec building without having an end-user lined up they would be granted a tax exemption for three years or until 50% of the building is occupied, whichever comes first.
At the conclusion of this grace period the client could then qualify for the standard 485-B, or one of the PILOTs. This new plan will minimize the risk factor associated with speculative building.
At our recent 2009 Broker Tour chairman Petro also announced that the IDA is in negotiations with Competitive Power Ventures (CPV) the company proposing to build the Valley Energy Center in the Town of Wawayanda. Petro stated. “This $800 million energy plant calls for an even more creative plan to assure that this company is able to bring this project to completion. The IDA will receive a $2.65 million fee for putting together the incentive package.” This energy plant will be one of the largest construction projects in the State and is receiving positive feedback from the municipality and citizens of the Town of Wawayanda.
Orange County Executive Edward Diana emphasized, “This innovative new program addresses the cost of doing business in New York and should let developers know that Orange County is open for business.”
The Orange County IDA is constantly working to improve the economic development landscape of Orange County and believes that most viable projects deserve a hard look and the opportunity to investigate the incentives available. The IDA can be contacted through the Orange County Partnership at 845-294-2323.
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