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Saturday, May 14, 2011

Section 8 - Wholly Exempt Properties...

in the Town of New Hartford.

We have divided this spreadsheet into two sections. The top section is for residential properties that are wholly exempt from property taxes; the bottom is for other than residential.

Section 8 Wholly Exempt

Exempt total $ 290,228,552.00

One of the wholly exempt properties, The Hartford located in the business park, is now owned by AXNY Office LP and is assessed at $10,800,000. The purchase price was $20,500,000.00, about half of what it is assessed...sale date December 22, 2010.

The Hartford is actually paying property taxes to the Oneida County Industrial Development Corporation on the $10,800,000 assessed value. However, under the terms of the PILOT/TIF agreement, OCIDA then gives the money to the town to pay the principal and interest on $2.3 million bond that was sold by the town to pay for the infrastructure in the business park.

According to information we obtained when the bond was purchased, it will be six years before the town gets enough money to fully pay off the bond costs each year. Until that time, Larry Adler supposedly has given the town a Letter of Credit to hopefully cover the difference. If there is not enough money left in the Letter of Credit to cover the shortfalls...taxpayers will have to make up the difference.

More spreadsheets to follow...

4 comments:

Anonymous said...

If the Hartford is being assessed at 50% (Eq Rate) then I should only be paying taxes on half of my property value.

Am I correct in this assumption?

New Hartford, N.Y. Online said...

Anonymous,

Here's the real 'rub'.

After The Hartford was built, the town realized that it was actually built outside the Empire Zone boundary.

So...they voted to move the Empire Zone boundary to include them so that the taxes that are being paid by The Hartford are reimbursed back to them under the Empire Zone program.

So taxpayers not only get stuck with loss of local tax revenue, but State tax revenue as well!

Anonymous said...

When will Mr. Adler pay the town the sum of $180,000 he is being said he owes the town coffers?

New Hartford, N.Y. Online said...

Good question...it was on the agenda this past week, but tabled after the Comptroller was voted down.

Hmm...the Comptroller would have had the auditing powers of the town board and could have paid that Shumaker invoice even if the town board said no...hmmm