MONTGOMERY – Amazon, which wants to build a one-million-square-foot distribution center in the Town of Montgomery and secure a 15-year-payment-in-lieu-of-taxes agreement with the town Industrial Development Agency, is attempted to sweeten the pot by offering to pay $2.7 million in the first five years of the proposed pact.
The previous proposal did not include any contribution from the giant company in the first five years.
During initial negotiations with the town IDA, a 10 percent deviation within the first five years of the PILOT was agreed to, said Town Supervisor Brian Maher. Within the last few weeks amidst additional concerns from the new town board, he said an agreement was reached to offer an 80 percent exemption in real property taxes in the first years and that is estimated at $2.7 million.
“This additional $2.7 million, coupled with base land tax payments and tax payments to the Coldenham Fire District, total approximately $3.92 million in tax revenue within the first five years of the PILOT agreement,” Maher said. “Throughout the life of the 15-year PILOT agreement our local taxing districts will receive $26 million in payments compared to $690,000 if the land remained vacant.”
He said the town IDA predicted $75 million of private sector investment is likely to be generated by the proposed PILOT deal.
The IDA is conducting its final public hearing on the proposed PILOT this evening. The agency will meet Friday morning and will likely cast the final vote on the project. If it is in the affirmative, Maher said Amazon could break ground in March.
