Saugerties not sure how to tax the Partition Street Project

Site plan for Partition Street Project, from Saugerties Citizens for Smart Development.

The people of Saugerties are facing a dilemma: Does their government tax the controversial and still-to-be-built Partitiion Street Project development a lot now, via a payment-in-lieu-of-taxes (PILOT) scheme, or later, via standard taxes once the development is actually built? The Ulster County Industrial Development Agency will make the final decision on the issue next week at its November 18 meeting.

Last week the Saugerties Village Board opted for "pay now" PILOT scheme that gives it as much money up-front as possible, according to the Daily Freeman:

The proposed deal being considered by the Board of Education, and approved last week by the Saugerties Village Board, would allow the developers to pay $100,000 annually in taxes on the improvements over 20 years, starting when the project is completed.

In the Saugerties Times, village officials explained their reasoning to go for the money now:

“We get more money up front, and we have better stability with this plan,” said village attorney Alex Betke, who advised the board on the agreement. “We know exactly what we are going to get.”

Ulster County legislator Mike Madsen has tossed in his two cents on his blog, saying that anything that helps spur development in the area is a good thing:

As a representative of Kingston, I'd prefer tax base development happening here, but as a Legislator, I welcome anything that helps the economy within our county. My desire of the IDA...Give your approval on the 18th and lets see something happen in Ulster County.

But the Saugerties Board of Education isn't sure that's the route it wants to take, according to the article in today's Freeman. To that end, the BOE is soliciting public input about the choice at a meeting to be held on Monday night at the Saugerties High School.