The Agency’s Economic Development Job Incentive Program Policy is segmented by classes of uses, but the following provisions are applicable to all PILOT agreements signed after the date of adoption of this policy. Projects which were induced prior to the date the IDA “Reform Bill” was signed into Law (July 21, 1993) are not subject to this policy.
- The Agency shall attempt to secure its PILOT agreements as a first lien on the real property.
- Closure, relocation of a company’s operations, failure of a company to make PILOT payments, or failure of a company to reasonably meet its employment projections in its application, may result in a cessation of real property tax abatements, transfer of title from the Agency to the company, or such other penalties as may be determined by the Agency.
- PILOT payments which become delinquent will be subject to a late penalty charge of 5% of the amount due and interest charges of 1% per month. Penalty and interest shall accrue to and to be paid to the affected tax jurisdictions(s). Any increase in late charges and interest which may be authorized by the legislature shall be applicable to this policy.
- Maintenance of tax base: IDA financial assistance shall not result in a reduction of existing tax revenues generated prior to Agency involvement.
- Additions: Project sponsors who add to existing facilities originally financed by the Agency may obtain full term abatement for additions which are financed or refinanced by the Agency.
- Refinancing of existing facilities: No tax abatement shall be allowed unless refinancing results in physical improvements to the facility and a measurable increase in employment.
- The Agency will consider special requests on a case by case basis.