"The New Paltz Oracle" Volume 85 Issue 1

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 3 oracle.newpaltz.edu

NEWS

The  New  Paltz  Oracle

Park  Point  PILOT  Agreement  Draws  Criticism By  Roberto  LoBianco Copy  Editor  |  Rlobianco83@hawkmail.newpaltz.edu

Wilmorite  could  move  forward  with  the  Park  Point  housing  complex  without  paying  any  taxes  on  the  project,  according  to  New  Paltz  Town  Supervisor  Susan  Zimet.  However,  in  February,  Wilmorite  applied  for  a  25-­ year  long  Payment  in  Lieu  of  Taxes,  or  PILOT,  agree-­ ment  with  the  Ulster  County  Industrial  Development  Agency.  If  approved  the  arrangement  would  have  the  FRPSDQ\ SD\ WKH ÂżUVW \HDU RI WKH SODQ ZLWK D JUDGXDO LQFUHDVH WR LQ WKH ÂżQDO \HDU The  town  assessor  estimates  that  Wilmorite  would  owe  $1.5  million  annually  if  Park  Point  were  taxed  at  the  same  level  as  other  properties  in  the  town,  accord-­ ing  to  Zimet.  ³,W ZDV ORRNHG LQWR DQG LWÂśV EHHQ FRQÂżUPHG WKDW the  property  is  tax  exempt,â€?  Zimet  said.  â€œBecause  the  mission  statement  of  the  foundation  did  get  changed  to  include  student  housing,  the  student  housing  portion  of  the  project  will  be  entirely  tax  exempt.â€? In  a  letter  to  faculty  and  staff,  President  Donald  Christian  said,  â€œIt  is  unfortunate  that  many  people  have  not  understood  that  the  developer  will  pay  full  taxes  on  [the  faculty  and  staff]  units  to  support  K-­12  education,  recognizing  that  employees  are  more  likely  than  students  to  have  school-­aged  children.â€? According  to  Christian’s  letter,  additional  hous-­ ing  Park  Point  will  provide  is  critical  to  maintaining  SUNY  New  Paltz’s  enrollment  levels  in  an  increas-­ ingly  competitive  higher  education  environment.  Wilmorite  Inc.,  a  Rochester-­based  real  estate  de-­ YHORSPHQW ÂżUP LV SDUWQHULQJ ZLWK WKH 681< 1HZ Paltz  Foundation  to  construct  a  732-­bed,  $56  million  housing  complex  next  to  the  campus  on  Route  32  South. The  New  Paltz  Foundation,  the  college’s  non-­ SURÂżW IXQGUDLVLQJ DUP SXUFKDVHG WKH DFUH SORW RI land  where  Wilmorite  will  construct  Park  Point  for  $2  million  in  2007  and  plans  to  lease  the  land  to  Wilm-­ orite  for  46  years. However,  Wilmorite’s  decision  to  pay  a  reduced  rate  on  the  student  housing  portion  of  the  project  has  drawn  criticism  from  some  residents  and  Town  Board  members.   â€œI  think  the  big  picture  that  the  foundation  is  miss-­ ing  is  that  we’re  seeing  tuition  increase,  we’re  seeing  URRP DQG ERDUG LQFUHDVH ZHÂśUH VHHLQJ LW WDNH ÂżYH WR six  years  for  students  to  get  through  our  university  system,â€?  Town  Board  member  Kristin  Brown  said.  â€œThe  state  doesn’t  have  enough  revenue  to  operate  its  university  system.  Why  not?  Because  the  state  grants  tax  exemptions  to  billion  dollar  corporations.â€?

Potential  costs  of  Park  Point  complex  continue  to  be  disputed. Â

In  his  letter,  Christian  cites  data  from  the  Hudson  Valley  Pattern  for  Progress  that  shows  a  nearly  20  per-­ cent  decline  in  the  number  of  high  school  graduates  in  Ulster  County  between  1993  and  2020.  Similar  de-­ clines  are  happening  across  the  Hudson  Valley.  â€œColleges  and  universities  throughout  New  York  and  the  Northeast  view  the  same  statistics  that  we  do,  and  are  intensifying  their  recruitment  efforts  in  areas  of  traditional  recruitment  strength  for  New  Paltz,â€?  Christian  said  in  his  letter.  In  a  letter  to  the  Town  Board,  David  Dorsky,  chair  of  the  New  Paltz  Foundation’s  Real  Estate  Commit-­ tee,  defended  Wilmorite’s  pending  PILOT  applica-­ tion  before  the  Ulster  County  Industrial  Development  Agency. “Wilmorite’s  proposed  PILOT  agreement  will  more  than  offset  any  expenses  incurred  by  the  Town  for  providing  additional  municipal  services,â€?  Dorsky  said. According  to  a  report  prepared  by  the  state  comp-­ WUROOHUÂśV RIÂżFH ,QGXVWULDO 'HYHORSPHQW $JHQFLHV were  created  in  1969  to  boost  economic  development.  There  are  114  active  IDAs  throughout  the  state  pro-­ viding  nearly  $500  million  in  tax  exemptions. 7KH FRPSWUROOHUÂśV RIÂżFH HVWLPDWHV WKDW jobs  were  gained  as  a  result  of  such  projects  at  a  cost  of  $2,659  per  job  created,  while  local  taxpayers  had  to  PDNH XS PLOOLRQ LQ UHYHQXHV ORVW WKURXJK 3,/27 tax  exemptions  in  2010  alone.

Thursday,  September  5,  2013

PHOTO Â BY Â ROBIN Â WEINSTEIN

The  Mid-­Hudson  region  offered  the  highest  level  of  net  exemptions  of  any  region  in  the  state,  according  to  the  report. A  fact-­sheet  prepared  by  Wilmorite  â€œminimal  im-­ SDFWV DUH DQWLFLSDWHG´ WR 7RZQ ÂżUH SROLFH DQG RWKHU services  â€œbased  upon  previous  experience  with  similar  student  housing  projects  in  the  State.â€? However,  the  initial  cost  estimates  outlined  by  Wilmorite  were  based  on  the  assumption  that  SUNY  New  Paltz  University  Police  would  provide  police  services  to  Park  Point,  according  to  Wilmorite’s  Draft  Environmental  Impact  Statement  on  the  project.  It  was  later  reported  that  University  Police  would  not  be  able  to  patrol  Park  Point.  Their  latest  union  FRQWUDFW SURKLELWV 83' RIÂżFHUV IURP VHUYLFLQJ DQ\ off-­campus  locations,  according  to  University  Police  Chief  David  Dugatkin. The  New  Paltz  Police  Commission  estimates  that  an  additional  $12.5  million  in  emergency  services  costs  over  25  years  would  result  from  the  construction  of  Park  Point,  while  Wilmorite  estimates  $300,000  in  additional  costs  over  the  same  period. “They  can’t  tell  us,  never  having  been  in  New  Paltz,  what  we  need  and  what  we  don’t  need.  That  has  to  come  from  experts  who  have  been  living  here  for  years,â€?  Ira  Margolis,  member  of  the  New  Paltz  Police  Commission  said.

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