The Bethlehem Industrial Development Agency has approved Tier 1 tax abatements for the first three tenants at the Vista Technology Park, subject to “clawback” agreements that would reduce the benefits if certain requirements were not met.
After a lengthy discussion at a Nov. 7 meeting regarding the final bond resolution for the project, members of the Industrial Development Agency board unanimously approved a PILOT, or payment in lieu of taxes, agreement for a ShopRite supermarket, and SEFCU and Berkshire Bank branches. The proposals would mean tax breaks of nearly $200,000 in total.
The board briefly discussed potential clawback stipulations, including a failure to make PILOT payments, changes in the purpose of the project and length of stay for businesses in the park, which could void the PILOT agreement in the future. The matters will be debated at a meeting scheduled for Nov. 23.
Most spoke in favor of the agreements at a Nov. 1 public hearing. The agreements will exempt the new businesses from paying property taxes for the first two years, with a sliding scale upward of payments over the following ten years until the businesses are paying their full share of property taxes. Some, however, believe the payments should begin right away.
“What you’re doing is you’re giving a tax incentive to a business that’s already decided that they want to be a player,” said Slingerlands resident Allen Greenberg. “If their taxes are less, my taxes are more.”
Former Town Supervisor Terri Egan said she had the same reaction initially, and reminded those in attendance that the town was reluctant at first to issue the abatements. She now believes these benefits are an opportunity for Bethlehem to “get in the game.”
“It has been a very long road, and there have been many obstacles and challenges,” said Egan. “I feel very strongly and very much in favor of this project, the three that we have before us, as well as the Tier 1 abatements.”
The IDA’s abatement scale is designed to be a middle-of-the-road approach compared to incentives offered in counties around the region, according to the agency.
Former Planning Board member and Bethlehem resident John LaForte characterized offering the incentives as inappropriate.
“What the town needs is relief from taxation, primarily from school taxes,” said LaForte.
While the abatements will exempt the businesses from paying property taxes initially, special district taxes such as fire, sewer and water would still need to be paid.
Judi Kehoe, the Chief Business and Financial Officer at the Bethlehem Central School District, offered the district’s support for issuing the breaks despite tax revenues that the district could miss out on over the span of the agreement.
“We feel that this project poises the community to take advantage of the growth that is occurring in the high-tech industry in our neighboring communities as well,” said Kehoe, who added that the district recognizes the potential for Vista to significantly expand the commercial tax base for the community.
Michael Morelli, the town’s Director of Economic Development and Planning, spoke in support of the projects and the abatements. He reminded those in attendance at the public hearing that the Town Board had approved mixed-use development at the Vista Tech Park, with 80 percent of the floor space to be used for offices and technology businesses, and 20 percent for retail or other secondary uses.
“I think it will send a very important signal to the public at large and potential tenants that after all these years of discussion and review, that Vista now is officially open for business, and we can get this project moving forward,” said Morelli.
At the Nov. 7 meeting, Columbia Development President Joe Nicolla told IDA members that the office and retail split is going to be “far less,” with less than 100,000 square feet of retail likely within the 1.4 million square feet of possible space at the tech park.
