The City Council will consider another 15-year Payment In Lieu of Taxes (PILOT), this time for the 115-unit Meridia Lafayette Village. The PILOT would call for an annual payment to the city of about $156,000, or about $1,356 per unit, based on 10 percent the project’s annual gross revenues, according to the ordinance (O-24-12).
The former Savoy site at the corner of Monroe and Main streets currently generates an annual property tax bill of just over $8,000.
***9/8/2012 UPDATE: The PILOT application differs from the ordinance, noting a proposed annual payment of $230,000, or $2,000 per unit.***
A public hearing and final approval of the PILOT is scheduled during the City Council’s regular meeting on Monday, which begins at 7 p.m.
The Lafayette Village proposal gained Planning Board approval last month and the Redevelopment Agency last week approved a redevelopment agreement with Capodagli Property Company. The PILOT application was filed in mid-May.
When the idea of a PILOT for The Savoy project was floated by the previous developer three years ago, the city administration quickly shot it down. City Administrator and Redevelopment Director Peter Pelissier said a PILOT was prudent in this case because the city encouraged Capodagli to pursue the project instead of acquiring the Center Circle. “We felt it was more in need, to complete the downtown,” he said, adding that a PILOT probably made it easier for bank financing. “We’re trying to be a partner to make it work.”
Capodagli’s 108-unit Meridia Water’s Edge, which broke ground earlier this year, was approved for a 10-year PILOT that would pay the city about $216,000 annually, or about $2,000 per unit, with a small percentage of it going to the county. PILOT agreements have been struck with at least five other developments over the years. Both Water’s Edge and Lafayette Village will pursue LEED certification.
The redevelopment agreement calls for construction to begin in 12 months (August 2013), with completion scheduled in 36 months (roughly August 2015). Capodagli acquired the property (Block 320, Lot 1.02) in June from Dornoch via bank transfer in lieu of foreclosure.