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Concord NY IDA - Other Classifications
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D. Other Classifications
I.
Life Care Community Project – Life Care Communities (also known as Continuing Care Retirement Communities) are 501©(3) corporations. A Special/Custom PILOT may be considered when such consideration is needed to obtain project approvals from the New York State including the Department of Insurance
II. Exemption from Sales and Use Tax
The IDAs maintain a policy for the provision of sales and use tax exemptions.
Personal property that is purchased in connection with a qualified project shall be exempt from local an State sales and use taxes for the period commencing with the closing and ending on the date (as such date may be extended in the sole discretion of the IDA) by which project documents require completion to occur in respect of the undertaking of the project or other project activities. The Tax Letter may be given prior to a financial closing as authorized by an IDA. For purposes of the exemption, “personal property” may include building materials, fixtures, furnishings and equipment, as well as certain services that may relate to any of the foregoing, provided that such purchases and equipment rentals and services are made by an entity as agent for the IDA. As such, such purchases will then be afforded full exemption from local and New York State Sales and Use Taxes until the project is completed (i.e. certificate or occupancy). Operating and maintenance expenses of projects are not incurred as agent of the IDA, and no sales tax exemption is provided thereof.
All project applicants must agree in writing to file with the New York State Department of Taxation, in form and at times required, an annual statement of the value of all sales and use taxes exemption claimed in connection with the facility in full compliance with Section 874(8) of the General Municipal Law.
III. Exemptions from Mortgage Recording Taxes
The IDAs maintain a policy for the provision of a mortgage recording tax exemption.
The Mortgage Recording Tax Exemption policy is to permit mortgage recording tax exemptions on all project related financing to the full extent permitted by New York State Law, whether or not the IDA has issued its bonds to finance the Project.
In addition, the IDA may, in its sole discretion, permit mortgage recording tax exemptions on non-project related financings, (e.g. second mortgages on the project to secure subordinated indebtedness of the project applicant). In determining whether to permit such exemptions on a non-project related financing, the IDA shall consider such factors as it deems appropriate, including but not limited to the use of the property, the degree of investment, the degree and nature of the employment and economic condition of the areas in which the facility is located.
IV.PILOT Mortgage
The IDAs may require the establishment of a PILOT Mortgage as a condition within the closing documents where a mortgage is involved, in order to secure the position of the PILOT payments versus other secured and unsecured claims.
The purpose of a PILOT Mortgage is to secure unpaid PILOT payments with a lien against the real estate, if they are not paid that mimics a real property tax lien. The lender agrees that the PILOT Mortgage will have priority over any mortgage given to secure the rights of bondholders or to secure any conventional financing. This would make the PILOT a secured obligation. The IDA may negotiate alternative forms of collateral to insure payments under the PILOT.
V. Countywide IDA Policy Considerations
In establishing the Policy for the provision of IDA Incentives and in considering amendments to this Policy, the IDAs are required to consider the following issues: (i) the extent to which a project will create or retain permanent private sector jobs; (ii) the estimated value of any tax exemptions to be provided; (iii) whether affected taxing jurisdictions shall be reimbursed by the project occupant if a project does not fulfill the purpose for which an exemption was provided; (iii) whether affected taxing jurisdictions shall be reimbursed by the project occupant if a project does not fulfill the purposes for which an exemption was provided; (iv) the impact of a proposed project on existing and proposed business and economic development projects in the vicinity; (v) the amount of private sector investment generated or likely to be generated by the proposed project; (vi) the demonstrated public support for a proposed project; (vii) the likelihood of accomplishing the proposed project in a timely fashion; (viii) the effect of the proposed project upon the environment; (ix) the extent to which the proposed project will require the provision of additional services; and (x) the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts.
VI. Deviation from Uniform Tax Exemption Policy
An IDA is required under Article 18-A of the New York General Municipal Law to establish a procedure for deviation from its uniform tax exemption policy. After taking into consideration the issues set forth in Section VI, above, an IDA may determine to deviate from the guidelines and policies established herein. In addition to any deviations previously set forth herein, an IDA may deviate from such policies after complying with the following: (i) setting forth in writing the reasons for deviation from such policy; and (ii) notifying the affected taxing jurisdiction(s) of the proposed deviation and the reasons therefore.
VII. Recapture of IDA Incentives
In the event that an IDA shall determine (i) that a project beneficiary has submitted an application, or documentation in support of an application, which contained a false or intentionally misleading statement as to any fact which is material to the project applicant’s application for benefits or which omitted any information which, if included, would have rendered any information in the application or supporting documentation false or misleading in any material respect, and (ii) that false or misleading statement or omission was made knowingly and intentionally for the purpose of obtaining financial assistance, then the project beneficiary shall forfeit any future tax exemptions or abatements and shall be required to pay to the appropriate taxing authority the amount of any real property, mortgage or sales tax abatements or exemptions received. The amount of benefits recaptured shall be: (i) for real property taxes, the difference between the amount of payment in lieu of taxes paid and the amount that would have been paid in real estate taxes if the IDA did not have an interest in the project; (ii) for sales taxes, the value of the sales tax exemption received and (iii) for the mortgage tax, the value of any mortgage recording tax for which an exemption was granted.
VIII. Intermunicipal Movement – Uniform Procedures
To ensure input from all interested parties and to fully document compliance by an IDA with the requirements of New York State law, the procedures outlined below will be followed be each IDA when a project applicant proposes to:
(i)
relocated from one municipality within Erie County (the Current Municipality”) to a different municipality also within Erie County (the Proposed Municipality’); or
(ii)
when an applicant proposes to close or significantly reduce its operations within the Current Municipality and increase operations with the Proposed
Municipality (with any significant reduction to be Measured by the proposed movement of work force, Relocation of fixed assets, or other like criteria).
In connection with such a proposed project, the applicable IDA will proceed only after complying with the following procedures:
A. The IDA will forward a written notice to the chief elected officers of the Current Municipality and the Proposed Municipality (along with their respective economic development designees), which notice shall include (i) the name, address and telephone number of the applicant along with the name of a contact person, (ii) the location within the Proposed Municipality that the applicant proposes to relocate to, and (iii) such other information or documentation with regard to the proposed relocation as the IDA may be in possession of (including a copy of the application for financial assistance, if completed). Such notice shall be sent by the IDA as soon as possible, but in no event later than five working days after receipt by the IDA of an application for financial assistance.
B. The application form to be used by each IDA will include questions soliciting information with regard to whom the applicant met with from the Current Municipality and a list of sites located in the Current Municipality that were considered by the applicant, along with the reasons for rejecting site(s) in the Current Municipality. If the applicant declines to respond to such questions or indicates that they have not met with representatives of the Current Municipality, the applicant will be strongly urged by IDA representatives to do so prior to submission to the IDA of the application for financial assistance.
C. Unless it is demonstrated that the applicant has contacted appropriate local economic development agencies, municipal officials, local realtors and/or other appropriate sources and has reviewed potential sites located in the Current Municipality, at the earliest possible moment IDA personnel will provide the applicant with a list of sites located within the Current Municipality that may be suitable for the applicant’s purposes. IDA personnel will forward the list to the applicant and will send a copy of such transmittal to the chief officers of the Current Municipality and the Proposed Municipality (along with their respective economic development designees.)
D. A written response or acknowledgement from the chief elected officer of the Current Municipality will be sought with regard to the application for financial assistance, and any such response or acknowledgement will be included in the record to be considered by the IDA Board when an approval of financial assistance is sought. This need not be a “sign off” or an approval of the relocation. The chief elected officers of the Current Municipality and the Proposed Municipality (and their respective economic development designees) will be invited to address the IDA Board when it considers any such application for financial assistance.
E. IDA staff shall provide a written certification (along with copies of appropriate back-up documentation) to the applicable IDA Board that items A-D have been compiled with, at the time that the Board considers any application for financial assistance.
F. If the Current Municipality is the City of Buffalo and the applicant proposes to relocate to another municipality within Erie County, any application for financial assistance shall be processed and acted upon by the Erie County Industrial Development Agency (“ECIDA”). If the Proposed Municipality is the Town of Amherst, the Town of Clarence, the Town of Concord, the Town of Hamburg or the Town of Lancaster, (i) the Chairperson of the IDA for such Proposed Municipality (or his/her designee) will be invited to submit written comments to ECIDA with regard to the proposed project and to address the ECIDA Board when it considers such application for financial assistance, and (ii) administrative fees arising from such transactions will be payable at the rates charged by the IDA for the Proposed Municipality and split equally between ECIDA and IDA fro the Proposed Municipality. Any extraordinary requirements that ECIDA may require as a condition of its approval of such project would only be imposed after consultation by ECIDA with the IDA for the Proposed Municipality.
G. With regard to proposed projects involving removal of a facility or plant from one area of New York State to another area of New York State, or in the abandonment of one or more plants or facilities in New York State, an IDA will make one or both of the determinations specified in General Municipal Law 862(1) (which permit the provision of financial assistance) only after having developed sufficient documentary evidence to support such determination(s) and only after having received a written certification from such IDA’s staff that statutory requirements have been satisfied. IDA staff are urged to review applications with counsel as soon as possible when it appears that the proposed project may involve a removal of a facility or plant from one area of New York State to another area of New York State or an abandonment of one or more plants or facilities in New York State, in order that appropriate data can be sought from the applicant on a timely basis so an IDA may consider whether either statutory determination may be appropriate.
IX. IDA Leadership Council
To encourage further collaborative efforts among the IDAs, to facilitate the uniform implementation of the Countywide Policy, and to provide a forum to address other common concerns with regard to economic development in Erie County, a Leadership Council of the IDAs will be established. Each IDA will designate one or more representatives to participate in the meetings of such Leadership Council, which are contemplated to occur on a quarterly basis. The Leadership Council will, through the consensus of its members, consider and resolve any concerns raised by and IDA with regard to the interpretation of the Uniform Policy, and will coordinate other joint activities of the IDAs to promote a countywide program of economic development.
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