Adopted March 30, 1999
The City of Mechanicville and Town of Stillwater Industrial Development Agency (the "Agency") is a public benefit corporation established pursuant to Article 18-A of the General Municipal Law and Chapter 582 of the 1978 Laws of the State of New York.
The Agency possesses a broad range of powers, enabling it to fulfill its purpose to promote, develop, encourage and assist in the construction, expansion, and equipping of economically sound industrial and commercial facilities. This, in turn, advances the job opportunities, general prosperity, and economic welfare of the citizens of the City of Mechanicville and the Town of Stillwater.
The Agency uses its financial and tax incentives to:
increase employment opportunities by attracting new development
maintain the present employment base by stimulating reinvestment by existing and new businesses.
The issuance of industrial revenue bonds generally results in an Agency taking title to the property, which it then leases back to the company under an installment sale agreement. Property owned by an Agency is exempt from local and school real estate taxes under the provisions of Section 412-a of the Real Property Tax Law and Section 874 of the General Municipal Law. This exemption does not apply to special district taxes and/or special ad valorem levies. Real property owned by the Agency is listed on Roll Section 8 (wholly exempt).
The Agency and all recipients of its financial assistance enter into a payment in lieu of tax agreement (PILOT agreement), which provides for annual payments in lieu of taxes (PILOT), in amounts which are based on formulas contained in the Agency's economic development job incentive program.
Legislation enacted in July 1993 requires an Agency to adopt a uniform tax exemption policy after considering issues involving the number of private sector jobs created or retained by a project; the value of the tax exemptions to be provided; the project's impact on existing businesses; the amount of private sector investment generated by a project; the additional public services which may be required to serve the project; and the additional revenues a project will provide for municipalities and school districts. The Agency is also required to seek and consider input on its uniform tax exemption policy from affected taxing jurisdictions prior to its formal adoption.
State legislation additionally requires an Agency to provide each affected tax jurisdiction with a copy of the PILOT agreement within 15 days of signing. Under the most recent legislation, PILOT payments must be allocated to affected taxing jurisdictions in the same proportion to the amount of real property tax which would have been received by the taxing jurisdiction had the property not been tax exempt. All PILOT payments received by the Agency must be remitted to the affected taxing jurisdictions within 30 days of receipt.