Nelson's project will pay reduced taxes

    WATKINS GLEN—The Watkins Glen Central School District board of education learned, Monday, Aug. 20, that the development of the Salt Point Road building would not be paying taxes for the first year of construction.
    Business Manager Gayle Sedlack said Developer Bruce Nelson, who wants to turn the building into apartments and an art gallery, has entered into a deferred tax payment program with the Schuyler County Industrial Development Agency.  She explained for the fall of 2012, the property now known as Water Works Center, LLC, will be wholly exempt from the tax rolls.
    “There will be $0 in school taxes paid this year,” said Sedlack.  She added as the village owned the building previously, taxes were not paid on it.
    For the first 10 years of the project, from 2013 to 2023, Sedlack said Water Works will pay a frozen base of $200,000.  There will be no added value for improvements.  Sedlack added the ultimate value after construction is complete is estimated at $3,400,000.
    Starting in 2024, the project will be taxable at $840,000.  Sedlack said the taxable amount will start to increase 11 to 14 years after the project starts.  By 2028, it will be fully taxable.
    Sedlack explained Payment in Lieu of Taxes (PILOT) programs like this factor into the new maximum allowable tax lax levy calculation schools and municipalities must determine each year.  She added in some districts PILOTs have had the adverse effects of restricting tax monies and increasing costs.  However, Sedlack said this is not the case in Watkins.  She added that this residential project opens the door for more PILOT programs.
    “It used to be considered for businesses to increase employees and job creation,” said Sedlack, and not necessarily the type of housing project that Nelson is planning.
    In other business:
    •  New Transportation Director Michelle Clark updated the board on the start times for the three schools.  With the single bus run starting this fall, the elementary and high school drop-off times are 8:05 a.m. and 8:10 a.m. at the middle school.  The district is moving to single busing as grade levels are shifted from the middle school to the main campus.
    •  The board approved the 2012-13 tax levy as $705,651,350.  Sedlack said the average change to the tax bill for a home valued at $100,000 after the STAR exemption is a $52 decrease over the 2011-12 tax bill.  However, she pointed out the tax levy increased by 2.49 percent, as approved by district voters.
    The next school board meeting is Tuesday, Sept. 4.  It is expected to start at 6:30 p.m.