Market Director Linnea Carlson said the final month of the market’s season will be in the Covenant Manor Apartments community space. The entrance for this location is on 23 West Third Street. Carlson said market hours for October will be 10:00 a.m. to 1:00 p.m.

She said they hope the move indoors will help protect vendors and customers from potential inclement weather.

The final outdoor market will be this Saturday, September 24. The Public Market’s season ends Saturday, October 29.

On Tuesday the Chautauqua County Industrial Development Agency board voted 8-0 in favor of a seven-year extension on an original 10-year Payment in Lieu of Taxes (PILOT) agreement with Millennia Housing Development, the owners of Covenant Manor in downtown Jamestown.

JAMESTOWN – The Chautauqua County Industrial Development Agency has given its approval to extending a tax abatement package to a downtown property owner for an addition seven years.

On Tuesday the board voted 8-0 in favor of the extension on an original 10-year Payment in Lieu of Taxes (PILOT) agreement with Millennia Housing Development, the owners of Covenant Manor in downtown Jamestown.

Covenant Manor in downtown Jamestown contains 88 apartments and provides housing to low-to-moderate income seniors.

Covenant Manor contains 88 apartments in the eight-story building, located at 23 W. Third St., which provides housing to low-to-moderate income seniors. The building has an assessed value of $3,065,000. Millennia was seeking the extension because of financial challenges its encountered while making more than $2.3 million in renovations to the building. When the initial 10-year PILOT was granted in 2012, the reported sum of all renovations was reported to be at $3 million.

As a result of the extension, Millennia Housing Development won’t have to pay full value taxes on the property until the year 2031. The PILOT payments will continue to increase at a 2 percent rate for the remainder of the initial agreement, up through 2023. Starting in 2024 the seven-year extension will kick in, at which time Millennia will see the PILOT rate increase by 11 percent, through the year 2030.

CITY DEVELOPMENT DIRECTOR AGAIN VOICES OPPOSITION

Prior to Tuesday’s vote on the extension, Jamestown Development Director Vince DeJoy – who also appeared during a public hearing on the issue last week – said the extension would lead to the city missing out on more than $300,000 in anticipated tax revenue. He reiterated the city’s concerns with the PILOT extension and offered reasons why it was opposed to it.

• READ DEJOY’S FULL STATEMENT TO IDA

Jamestown City Development Director Vince DeJoy addresses the IDA during its Jan. 24 board meeting.

“There’s no additional significant investment or job creation for the development that would warrant the tax payers providing an additional and unprecedented seven-year property tax PILOT extension,” DeJoy said while addressing the IDA board. “It’s not fair to other similar affordable housing developments that pay full taxes, or any other business in Jamestown, or around Chautauqua County, that struggles to pay its property taxes.”

DeJoy also said that Millennia Housing should do a better job of marketing available retail space on the first floor of the building, and that the city would work with Millennia in identifying grant funds to help offset the renovation costs.

Despite the city’s opposition, the IDA board voted 8 to 0 in favor of the extension, although they did amend the abatement to include an 11 percent phase-in each year of the seven addition years. The original extension proposal called for a 7 percent phase-in.  IDA Board president Mike Metzger said the board felt Millennia housing deserved the extension for the investment they were making in a downtown property.

“We were very pleased when this company came in and put this property back on the tax rolls,” Metzger said. “They’ve put a total of – between purchase price and improvements – of $4 million into the project. This is, to our knowledge, the only section 8 property that is on the tax roles, all the other ones are off of the tax rolls. And over the 17 years, this company will be paying $905,000 [via a payment in lieu of taxes] that wouldn’t have been paid previously.”

The board’s vote on the extension came after more than an hour-long closed-door executive session, in which members reviewed financial information with a representative from Millennia Housing without any members of the public present. When the executive session finally concluded, no board members commented on or discussed the extension resolution and voted immediately to approve it.

Following the vote, DeJoy expressed his disappointment with the outcome.

“This type of policy needs to stop,” DeJoy said. “Our taxpayers are way overburdened and to allow an extension of a PILOT is kind of an insult to the people who pay what they feel are very high property taxes in this city.”

The existing 10-year PILOT agreement approved in 2012 by the IDA resulted in Millennia Housing Development saving over $1,132,000 in property tax payments between 2013 and 2023. Of that amount, more than $460,000 will be lost by the city during those 10 years.  According to DeJoy, the city will likely miss out on an additional $300,000-plus in tax payments during the seven years of the extension.

COVENANT MANOR TAX ABATEMENT SCHEDULE

Period – Year – PILOT Payment
Year 1 – 2014 – $37,847 (Initial PILOT)
Year 2 – 2015 – $38,604 (2% increase)
Year 3 – 2016 – $39,376 (2% increase)
Year 4 – 2017 – $40,163 (2% increase)
Year 5 – 2018 – $40,967 (2% increase)
Year 6 – 2019 – $41,786 (2% increase)
Year 7 – 2020 – $42,622 (2% increase)
Year 8 – 2021 – $43,474 (2% increase)
Year 9 – 2022 – $44,344 (2% increase)
Year 10 – 2023 – $45,230 (2% increase)
Year 11 – 2024 – $48,396 (11% increase)
Year 12 – 2025 – $51,784 (11% increase)
Year 13 – 2026 – $55,409 (11% increase)
Year 14 – 2027 – $59,287 (11% increase)
Year 15 – 2028 – $63,437 (11% increase)
Year 16 – 2029 – $67,878 (11% increase)
Year 17 – 2030 – $72,629 (11% increase)
Year 18 – 2031 – Full Tax Payments Begins

The IDA is considering a seven-year extension of a current 10-year Payment in Lieu of Tax (PILOT) agreement with the owners of Covenant Manor Apartments in downtown Jamestown, which has an assessed value of $3,065,000. The extension is being requested by Millennia Housing Development of Cleveland on behalf of Prairie Covenant NY, L.P., which owns the 88-apartment, eight-story building at 23 W. Third St that provides housing for low to moderate income seniors. The group is asking for the extension because of financial challenges it’s faced while delivering on its promise of making $3 million in renovations to the building.

Last week the IDA held a public hearing on the extension and city development director Vince DeJoy was on hand to voice opposition to it. He said the extension would lead to the city missing out on more than $300,000 in anticipated tax revenue. DeJoy also said that the existing 10-year PILOT agreement has already resulted in Millennia Housing Development saving over $1,132,000 in property tax payments between 2013 and 2023. Of that amount, more than $460,000 will be lost by the city during those 10 years.

The PILOT that is currently in place was first approved in 2012 and provides an abatement schedule for the years 2013 through 2022. But if the latest extension request is approved by the IDA, the property tax abatement period would be extended to 2030. The average savings in property tax payments for Millennia Housing would amount to about $112,000 per year, over the full 17-year period of the PILOT.

Tuesday’s meeting will take place 10 a.m. in the 2nd floor conference room of the BWB building in Jamestown, located at 201 W. 3rd St. It is open to the public.

As WRFA reported on Wednesday, Millennia Housing Development is seeking a seven-year extension on its current PILOT agreement with the IDA. A public hearing on the extension took place on Tuesday, with city development director Vince DeJoy saying the city was opposed to the extension because it could result in a loss of $316,000 in anticipated revenue over the seven-year period.

The IDA Board will likely vote on the extension request at its next meeting on Tuesday, Jan. 24 at 10 a.m.

• READ DeJOY’S FULL STATEMENT

The IDA is considering a seven-year extension of a current 10-year Payment in Lieu of Tax (PILOT) agreement with the owners of Covenant Manor Apartments in downtown Jamestown, which has an assessed value of $3,065,000. The extension is being requested by Millennia Housing Development of Cleveland on behalf of Prairie Covenant NY, L.P., which owns the 88-apartment, eight-story building at 23 W. Third St that provides housing for low to moderate income seniors. The group is asking for the extension because of financial challenges it’s faced while delivering on its promise of making $3 million in renovations to the building.

The PILOT that is currently in place was first approved in 2012 and provides an abatement schedule for the years 2013 through 2022. The first year of the agreement allowed Millennia Housing Development to pay 50 percent on its property taxes to Jamestown, Chautauqua County, and the Jamestown School District, with a 2 percent increase for each subsequent year. Millennia would then be required to pay full tax value by 2023.  But if the latest extension request is approved by the IDA, the property tax abatement period would be extended to 2030, with 7 percent increases scheduled, starting in 2023.

FINANCIAL IMPACT ON CITY

According to DeJoy, the existing 10-year PILOT agreement has already resulted in Millennia Housing Development saving over $1,132,000 in property tax payments between 2013 and 2023. Of that amount, more than $460,000 will be lost by the city during those 10 years. In addition, Millennia was also given exemptions during the 10-year time period on sales tax, real estate tax, and mortgage tax. If approved by the IDA, the PILOT extension would result in an additional total property tax savings for the property owner of $769,500 between 2023 and 2030. Of that, more than $316,000 would be lost by the city over the seven-year period.

DeJoy said the city is opposed to the extension for a couple of reasons.

“This proposed benefit is ultimately place upon the shoulders of an already burdened local, school, and county property taxpayers,” DeJoy said.

“Moreover,  the city doesn’t believe that the reasons and rational provided are warranted to receive this additional benefit at this time,” DeJoy added. “It is our understanding, as provided by Millenia Housing Development, that unforeseen additional costs for renovation to the exterior facade of the building, as well as the investors’ and lenders’ project financing requirements to meet financial thresholds is the reason for the request to extend the property tax PILOT. Those project challenges should not be the responsibility of local property taxpayers, whom is already providing a substantial benefit. Those burdens should be born by the private developer, not the citizens of Jamestown and Chautauqua County.”

According to DeJoy, Millennia has done a total of $2.3 million in renovation work on Covenant Manor.  DeJoy said the city is obviously thankful for the upgrades done to the building,  although he also said there was some disappointment the commercial space on the first floor has yet to be filled. However, the residential portion of the building is at full occupancy.

Although both Jamestown School District and Chautauqua County would also be affected by the PILOT extension, only the city had a representative attend the hearing to address the impact the abatement would have on property tax revenue.

Also speaking during the hearing was city resident and downtown property owner Peter Miraglia, who said the owners should be requesting a lower assessment on the value of their property, rather than requesting an extension on their current PILOT agreement.

The IDA board will act on the extension request during it’s monthly meeting next Tuesday, Jan. 24 at 10 a.m. If the extension were granted, the average savings in property tax payments for the building owner would amount to about $112,000 per year, over the full 17-year period of the PILOT.

The meeting will be held in the conference room of the BWB Building in downtown Jamestown and is open to the public.

The Chautauqua County Industrial Development Agency will host a public hearing Tuesday morning, Jan. 17, regarding the extension of a Payment in Lieu of Taxes (PILOT) agreement with the owners of Covenant Manor Apartments in downtown Jamestown.

The PILOT extension is being requested by Millennia Housing Development on behalf of Prairie Covenant NY, L.P., which owns the 88-apartment, eight-story building at 23 W. Third St. (located on the southeast corner of Third and Cherry Streets).

The request is for a seven-year extension of the 10-year PILOT that is currently in place and which was first approved in 2012.  This would increase the property tax abatement period to a total of 17 years, up to the year 2030.

Representatives from the city of Jamestown are expected to be on hand for hearing to make a statement. Other residents and officials are also expected.

The hearing will take place at 11:30 a.m. in the IDA offices conference room, located on the 2^nd floor of the BWB building at 201 W 3rd Street. It is open to the public.

In order to qualify for the program, seniors age 60+ must meet the following criteria:

•  Monthly income of at or below $1,799, for a single person household; or
• Monthly income of at or below $2,425, for a two person household; or
• Monthly income of at or below $ 3,051, for a three person household.

Coupon books are worth $20 with five coupons worth $4 each in each booklet. Coupons are accepted at designated Farmer’s Markets and a list of participating markets with their locations and times will be dispersed with the coupons. Only one coupon is allowed per household and seniors must bring proof of age to receive a coupon book.

For more information about the Senior Farmers Market Coupons, please contact any of the following Office for the Aging locations:  Mayville: (716) 753-4471, Dunkirk: (716) 363-3865, Jamestown: (716) 661-8940.