Rotterdam OKs repayment to GE Tax deal adds ‘stability’ over next 10 years Thursday, June 21, 2012 By Justin Mason (Contact) Gazette Reporter
ROTTERDAM — After decades of feuding over property values, Rotterdam and General Electric have reached a deal local officials hope will start a more genial relationship between the town and its largest employer. The company has agreed to a 10-year payment-in-lieu-of-taxes agreement that will provide $49 million in revenue for the town, county and Schalmont Central School District starting in 2013. In exchange, the three taxing entities have agreed to refund roughly $1.8 million that was collected in overpayments between 2003 and 2011. The repayments will be made throughout the duration of the PILOT agreement.
By the numbers Town repayments $277,042 2003-2006 $243,233 2007-2011 GE payments to the town (minus repayments) $813,893 2013-2018 $849,973 2019-2023 County repayments $354,341 2003-2006 $218,608 2007-2011 GE payments to the county (minus repayments) $843,665 2013-2018 $881,205 2019-2023 Schalmont repayments $721,635 2007-2011 GE payments to Schalmont (minus repayments) $3,303,120 2013-2018 $3,159,500 2019-2023
Supervisor Harry Buffardi said the deal between the three taxing entities ends a protracted legal battle with General Electric that has cost more than $300,000 over the past five years and opens the door for better relations with the company. He said the agreement setting the company’s property values over a 20-year period starting in 2003 ceases the latest round of legal sparing and provides the town with a stable source of tax revenue far into the future. “We can handle this [repayment] within the budget in order to have stability over the next 10 years,” he said after members of the Town Board ratified the agreement Wednesday. The agreement will set the value of the 322-acre property at $132 million, which is a $6.5 million reduction from the most recent town assessment. The new assessment will mean General Electric is owed money from all three entities, but the company agreed to waive interest on the refund and allow the town, county and school district to split it over 10 years. Schalmont agreed to repay $721,635 that it collected from General Electric between 2007 and 2011. The district paid the company for 2003 through 2006 following a state Supreme Court judgement in 2007. The town will refund $520,275 collected between 2003 and 2011; the county will repay $579,949 paid by the company over the same time period. Despite the assessment reduction during past years, General Electric will pay $4.8 million in taxes on the property or the amount it would owe if the land were valued at $141 million during the first five years of the agreement. These payments increase to $5 million per year during the last half of the agreement, an amount that is equivalent to the taxes General Electric would pay were the property valued at $146 million. “We believe in paying our fair share of taxes and are very pleased to have come to a mutually satisfactory agreement with the town, school district and county that will provide long-term stability for all parties involved,” General Electric spokesperson Chris Horne said in a prepared statement. “We need to be able to compete globally while supporting our local communities and we appreciate the opportunity to be able to work out an equitable solution that accomplished both.” Town officials were in the midst of preparing for their latest legal battle with General Electric this summer. Board members allocated $115,000 for an engineering and appraisal study of the plant in April, but spent only a fraction of the expenditure before the deal was reached. The agreement was first approved by the Town Board late Wednesday afternoon. Schalmont’s Board of Education and the county Legislature followed suit during their respective meetings afterward. Rotterdam is the latest Schenectady County community to resolve its legal woes with General Electric by forging a PILOT agreement. Similar deals are already in place in both Niskayuna and Schenectady, where the company also owns sizable tracts of land. General Electric’s main campus is split almost equally between Schenectady and Rotterdam. The swath of land located in the town is bordered by Interstate 890 and includes the company’s 1-million-square-foot-plus steam turbine plant known as Building 273 — the facility toured by President Barack Obama in 2011. Legal arguments over the company’s property value in Rotterdam date back to 1983. The grappling seemed to peak when the town assessor valued the property at $275 million in 2000. Two years later, a state Supreme Court judge reduced the assessment to $122 million, leaving the town, school district and county on the hook to pay back roughly $15.7 million in tax overpayments made over a 10-year period. Schalmont took out a 20-year loan to repay $6.15 million of the tax refund not covered by reserve funds, and $1.55 million was waived by GE as a “gift” to the school district. A state Supreme Court judge set the 2003 property value at $126.4 million and the 2004 value at $129 million, locking the company into the higher assessment through 2007. But the battles over assessment continued when the town upped the value of the property to $138.5 million in 2008. Schalmont Superintendent Valerie Kelsey said the district’s legal counsel recommended taking the deal rather than continuing to fight General Electric. She said the agreement will save the district some legal fees and finally provide it financial security over some of the costly judgments in the past. “It gives us stabilization so we know what we’re doing moving forward,” she said. County and town business leaders lauded the agreement and characterized it as a positive resolution for all parties involved. Charles Steiner, the president of the Chamber of Schenectady County, characterized the deal as demonstrating Rotterdam’s willingness to work and cooperate with the private sector. “This agreement is such a positive step that will improve relations with General Electric,” he said. David Buicko, the chief operating officer of the Galesi Group, said resolving the ongoing legal battle closes a financial pitfall that awaited the town if it lost. He lauded General Electric’s ongoing investment in other areas of Schenectady County and praised the deal for improving relations. “We want to make this a business-friendly community,” he said................................>>>>.......................>>>>..........................http://www.dailygazette.com/news/2012/jun/21/0621_ge/
The deal ..... Ray Gillen, chairman of the Schenectady Metroplex Development Authority, which previously negotiated a PILOT agreement with GE on the city portion of its main campus.
So Metroplex is involved in exempting a long existing for profit business from having to pay taxes!!!! Not just exempting a brand new business to the city, but a long long existing business which, by state law CLEARLY is required to pay taxes
Quoted Text
Supervisor Harry Buffardi said ....and said "this is a good deal for the town."
That sentiment was echoed by several county officials and businessmen during the meeting.
"We want to make this a business-friendly community ...
But of course, the do NOT want to make it a residential friendly community. Homeowners try to get their assessments lowered and the answer is "NO" Then these dems exempt ultra wealthy for-profit businesses from paying their full taxes which then FORCES the financially struggling homeowners to make up the difference.
Another thing is the big business can afford the highest priced lawyer money can buy to sue for assessment reduction, and then the expense of that attorney probably becomes tax deductible business expense. The homeowners meanwhile have no money to hire an attorney--not after paying their taxes and the taxes of the big businesses -- so they grieve themselves and most likely lose because the government bodies are so business friendly that they've become anti-homeowner. And then government official wonder why people are trying to leave and why homeonwers don't want to move here.
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
maybe you forgot one of our assessors said this back in 2000 about GE he was a REP appointment recommended by the master plumber
"maybe for the first time in
along time they'll be paying their fair share"
but it is the town board that lets this stuff happen the board appoints the assessor
hire one who will do the job requardless of who the propertry owner is
assessors should shut the Fu(k up
i may not agree with the current admin about all the meetings on one day and the lack of openness but at least they watch what they say - the super has some of them in control
these issues are the responsibiliy of the town board for they as a team are the managers of the town
assessors and the GOP - have destroyed the party
assessors and the DEMs - home run
hmmmmmmm.
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IF THE ASSESSOR'S DIDN'T DEFEND THEMSELVES ARE YOU SAYING THE POLS DO??? HARDLY!!! JR. WAS SPOT ON. Hmmmmmm
the master plumber is a democrap on HBs team now BTW
This is a sweet deal for GE, and now the town can blow their nut on police overtime and pension padding for the cop brass and favored few. Congrats on fooling everyone including the Gazette.
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
just gonna raise your taxes again....go to the-homeowner. Dont worry your taxes will be so high. ( not they arent already ) no one will buy your house on these patched up roads. Rotterdam is a sh*t hole !!!!!!
just gonna raise your taxes again....go to the-homeowner. Dont worry your taxes will be so high. ( not they arent already ) no one will buy your house on these patched up roads. Rotterdam is a sh*t hole !!!!!!
Wow, how come you are shilling for Boofanti and the democrap team on this one?
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
Anyone know what the school tax rate is for Schalmont yet?
Watch the dems continue to announce that they lowered the county taxes. Yeah, sure. Our tax BILLS -- those of US who are actual taxpayers (we go to work to earn money to put our paycheck in to the bank to then write out a check to pay the taxes, or pay online, or escrow) will DEFINITELY see an INCREASE in county taxes -- AS WE HAVE SEEN EACH AND EVERY YEAR (despite what the dems have said in their campaign propaganda. And what effect will it have on town taxes. We'll see.
Reduce the tax LEVY and WE TAXPAYERS will STILL see an INCREASE in our tax BILLS.
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
Logged
inept or corrupt
