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.