County and city give OK on KCG Development PILOT

The Amsterdam Common Council and Montgomery County Legislature both voted unanimously on Tuesday during their regular meetings to give their consent on a 30-year payment in lieu of taxes (PILOT) agreement with KCG Development which is proposing to build a 120 unit residential development, a restaurant/banquet facility, and a waterfront boardwalk on the city’s south side.

The Greater Amsterdam School District Board of Education is the only entity that has yet to vote on the agreement. Approval from all three entities is required for the agreement, which is being processed by the Montgomery County Industrial Development Agency.

According to a schedule attached to the city resolution, KCG Development will pay $30,655 in the first year of the agreement*, with the amount steadily rising over 30 years to $149,912. Total revenue will total approximately $2.9 million over the course of the agreement. The schedule indicates the amounts are estimated and will be divided proportionally among the city, county, and school district.

According to the PILOT proposal from KCG Development, the payments are based on 5% of the project’s projected gross income. In addition, the proposal estimates the project will generate 146 construction jobs and 29 permanent jobs. It estimates the project will generate approximately $186,000 per year in sales tax generated from an additional $2.5 million in taxable sales.

*In a previous article, the Compass reported a different value for the first year’s payment which was based on KCG’s proposal which listed the value incorrectly.

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About Tim Becker

Tim Becker is the owner of AnthemWebsites.com LLC which publishes The Compass. He serves as both editor and a writer.

2 Responses to County and city give OK on KCG Development PILOT

  1. AvatarWayne Lenig says:

    Who is KCG and why do they owe 30 years back taxes? Doesn’t that make them a very questionable future risk? Are they getting any Federal or state money for this development? The county is in desperate need of a gateway hotel and conference facility to shore up its historical tourism potential. This might be a good opportunity to get those much needed services. Just sayin …

    • AvatarTim Becker says:

      A PILOT program takes the place of future taxes, not back taxes. KCG doesn’t owe anything, but this agreement will start once they’ve built the building. This is reducing the amount they pay the county, city, school, instead of what their actual property taxes would be based on the valuation of the property. So it’s a form of financial assistance, certainly. But the property currently is not generating any tax revenue. They have received about just over $1million in state grants. They are also hoping to be awarded low income housing tax credits which they sell to raise additional capital for the project.

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