City Looks To Hire PILOT Consultant
Post Building, Griffin, Wesley Grove & North Beach Agreements to be Vetted
City officials will look to hire a consultant to review four existing payment in lieu of tax [PILOT] agreements, according to a request for proposal [RFP] due by month’s end.
PILOTS were first enacted across the state in 1977. The local agreements typically include a full payment of city taxes but attribute a 5 percent payment of county taxes and no school tax payment. Funds normally dedicated to the school tax and the remainder of the county tax pay debt service on bonds used to fund infrastructure repairs.
“We want to review the existing PILOTS to ensure that the billing has been correct,” City Manager Michael Capabianco said. “The RFP is requiring a two year look back. Moving forward, we would like a consultant to perform the calculations as each agreement is slightly different.”
The consultant would be charged with vetting PILOT agreements for the Post Building, Griffin, Wesley Grove and North Beach developments. This includes procedure, the financial agreements, as well as auditing revenue and billing.
Capabianco said iStar PILOT agreements are not included because they “are calculated by another company under an existing agreement.”
According to the RFP the city experienced an increase of approximately $80 million in new valuation in 2015 and 2016, primarily from new waterfront and downtown development.
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