BREAKING NEWS

BREAKING NEWS

Falconer School District Approves Of Potential PILOT Agreement

FALCONER – Potential tax abatement incentives for a newly proposed hotel project are a welcome prospect for administrators of the Falconer Central School district.

The project would call for the construction of a new hotel at Exit 12 along Interstate 86. It is being proposed by Boxwood Hotel LLC, the company that owns Exit 12’s Hampton Inn and the Best Western along West Third Street in Jamestown.

Following a 5 p.m. public hearing at the Ellicott Town Administration Building today, the Industrial Development Agency will decide whether it will offer tax abatement incentives. According to an article appearing in the Aug. 27 edition of The Post-Journal, the incentives could include sales tax abatement on construction materials and for anything in the facility that has a use-life of longer than a year; an abatement on the mortgage recording tax; and a Payment In Lieu Of Taxes.

According to Brent Agett, business official at Falconer, a possible PILOT agreement could be considered beneficial to the school district.

“Since it’s vacant land, I’m in favor of such an agreement,” Agett said. “From our standpoint, having that tax base is always a promising type of thing. Hopefully, it will add jobs to the economy, and it will eventually give us a tax base on the tax rolls. The IDA and the county initiate these types of things, but if it’s going to create a tax base for us, it’s promising for the district itself.”

According to Bill Daly, IDA director, the Boxwood Hotel was given tax abatement incentives for the Best Western and Hampton Inn projects. In a recent interview, Daly said even if the IDA doesn’t grant a PILOT agreement to the company, they are still entitled to tax abatement incentives through the state.

”When you do a new construction project in New York state there is a 485b that everyone is entitled to,” Daly said previously. ”What that would give you in the first year is 50 percent tax exemption on real estate property taxes. Then it decreases 5 percent for the next nine years. Then they pay 100 percent in the 11th year.”

Agett said the construction of a new building equates to an increase of income for the school district.

“If it was something where they’d have to raze a building, it would be detrimental. But erecting a building on a parcel of land would give us more of an income than what we have,” he said. “If it’s a new building, we’re happy to have the additional tax base.”

Daly said a decision from the IDA board on a PILOT agreement should be made during its next meeting, which is scheduled for Tuesday, Sept. 17.