continued The agreement requires the town to refund around $277,000 and the county to refund around $354,000 for the tax assessments from 2003 to 2006.
For the taxes from 2007 to 2011, GE will receive a refund from the town around $243,000, with the county refunding around $219,000 and Schalmont refunding around $722,000.
The agreement also sets up a 10-year payment in lieu of taxes program between GE and the municipalities, to be administered by the Schenectady County Industrial Development Agency.
The town and county would not pay GE’s refunds out of pocket, because of the structure of the PILOT agreement, instead crediting those payments to GE’s yearly taxes.
The PILOT would begin 2013 and end in 2022, allowing local officials to budget revenues and GE to know tax expenses. The Schenectady County IDA would need to approve PILOT terms with GE before it becomes effective.
Under the PILOT, GE during the first five years would pay a lump sum tax payment of around $4.8 million, which is the equivalent of an assessment of $141 million. In the remaining five years, GE would pay a lump sum tax payment of around $5 million, which is equivalent to an assessment of $146 million.
The district throughout the 10-year agreement would receive nearly $31 million. After allotted credits, the town would receive around $8.32 million over the 10-year agreement and the county would receive nearly $8.63 million.
Ray Gillen, commissioner of the county Economic Development and Planning Department, said reaching the agreement was a “transformative” and “emotional” process and touted the deal as an “historic” achievement.
“I have been in this business about 30 years — I don’t recall another community coming together like this … to pass something that is very, very important to this community,” Gillen said. “This has just been a very high priority.”