Taxpayers in the Town of Kendall will be watching closely February 14 when the Orleans Economic Development Agency board votes on a Payment in Lieu of Taxes (PILOT) tax abatement agreement for the Cottages at Troutburg project in Kendall.
Orleans EDA Chief Executive Officer/Chief Financial Officer Jim Whipple confirmed the item is on the February 14 meeting agenda during a second public hearing on the PILOT held Monday, February 3 at the Kendall Jr./Sr. High School.
The hearing drew a crowd of about 50 people. All those who spoke continued to express their disapproval of the tax breaks which would provide an estimated $227,777 in tax abatements for the project over a ten-year period.
Several who spoke termed the proposed agreement “… enabling corporate welfare.”
The Wegman Group plans up to 400 seasonal cottages for the Troutburg development located on a 126-acre former Salvation Army camp site on Monroe-Orleans County Line Road. The abatement covers the 126 acres and existing structures – the new cottages are not part of the plan.
Residents questioned Whipple as to why it has taken The Wegman Group this long to apply for the abatements. Many said that during the approval process, the town was never notified that developers would seek any tax breaks.
Whipple responded that the timing was normal for such an agreement.
Taxpayers also questioned the results of a cost-benefit analysis completed by the Orleans EDA which projects more than $12 million in benefits to the community from the Troutburg development during the 10-year abatement schedule.
The Orleans EDA estimates that for every dollar given up through tax breaks, $53 will come back to the community – including about $900,000 in sales tax – if 300 cottages are eventually built.
More than one resident – including Town Supervisor Tony Cammarata – called those figures “bogus” and “wishful thinking,” explaining that they expect residents of the cottages to shop and spend money in Monroe County – namely Hamlin and Brockport – where there is a variety of shops and large grocery stores.
Residents also pressed Whipple as to whether their testimony and written statements gathered at both public hearings will carry much weight with the EDA board.
“They have a lot of influence,” Whipple said. “(The board members) are good people, they live in Orleans County. I guarantee you they will read them.”
Whipple recorded all testimony on audio tape during the hearing and said transcripts will be provided to board members. Two of the seven EDA board members attended the February 3 public hearing – Paul Hendel and John Misiti.
Kendall Town Councilperson Bruce Newell testified that the board should consider a PILOT agreement with an alternative structure – one which would be performance based – only offered when certain targets are reached – such as 50 cottages being built.
“It would put the burden on the developer,” Councilperson Newell said. The PILOT as it is proposed would mean Kendall taxpayers would be “subsidizing a public resort,” he added.
Councilperson Newell also echoed concerns of other residents that initial sales of the cottages have been slower than anticipated and explained that he knows people who, at first, were interested in purchasing a cottage, but lost interest after finding out more details about the development.
“The value is not there,” he said, “it’s turning people off.”
Others complained that the cottages are pre-fabricated and therefore the development will not create local construction jobs.
All who spoke, including Supervisor Cammarata, said they are against the tax breaks and that The Wegman Group should pay their fair share of taxes. He noted that the PILOT request took the town by surprise.
“We have had a lot of surprises and a lot of assumptions (in the) cost benefit analysis,” he said. “You should have done your homework better. The people of Kendall work too hard each and every day to put food on the table, they deserve a better (deal) than this. Please don’t pass this through.”
From the Westside News Inc. archives
•January 26, 2014 “Kendall residents to have another opportunity to comment on tax breaks for Troutburg”
•January 19, 2014 “Kendall’s Troutburg Project under consideration for tax abatement”
•January 20, 2013 “Cottages at Troutburg three-season resort complex plans approved”
•October 28, 2012 “Troutburg resort complex under review in Kendall”
Search this website to review the previously printed coverage.
