Alderman Tiffany Garriga (Second Ward) asked Kent to talk about the changes that had been made "to make this a stronger project." The first thing Kent mentioned was that they had been able to get the PILOT payment in to first year up to $80,000--that's an increase of $3,000 over the original amount of $77,000. He also announced the creation of a Community Advisory Board to be chaired by Garriga. Exactly what the board's function will be is not clear. He also said they had eliminated the studio apartments planned for the building and added three-bedroom apartments. He promised preference to local applicants and spoke about "deeper affordability," although it wasn't clear exactly what the latter meant. Later on in the discussion, Kent spoke of affordability for households with incomes that were 40 to 130 percent of the AMI, which is no change from the original information.
There did seem to be a change in the term of the PILOT. Originally, it was for forty years. In his comments on Monday, Kent referred to a thirty-year PILOT and said Galvan "was completely on board with entering into another PILOT when this one is up."
Alderman John Rosenthal (Fourth Ward) noted that the construction costs being proposed--under $200 per square foot--were lower than usual and expressed concern about future "maintenance issues." He made reference to issues at Bliss Towers. Garriga countered, "Bliss had problems because of neglection." Kent talked about Galvan's "standards for what affordable housing should look like" and asserted the building would "high quality housing" with "all units of the same quality." Later, responding to a comment by Ronald Kopnicki, which began with a quote from Eleanor Roosevelt, Kent asserted, "This project is all about human dignity."
Kopnicki predicted that "future citywide property assessments will go up" as a consequence of this building and its tax abatements. In his response, Kent said, "People are facing housing cost burdens that are really debilitating." He seemed not to be considering homeowners struggling under the burden of increased property taxes among the people to be aided by this project.
Although it does not appear yet on the agenda for the Council's regular meeting on July 22, a resolution regarding this project may come up for a vote at that meeting. On Monday, Jeff Baker, counsel to the Council, advised the aldermen, it was "just a resolution demonstrating your general support." He went on to say that what they would be voting on is, "Yes, we support this, and the state should put this in their queue."
COPYRIGHT 2020 CAROLE OSTERINK
Wow a lot of changes with not much explanation and no public comment. Not good. (Mr) Kopnicki's comment re property taxes going up as a result of the tax abatement is well noted and so is the non-answer from Mr. Kent. A really open hearing should be set.
ReplyDeletePer Hudson’s 2018 Strategic Housing Plan, 17% of Hudson homeowners have housing costs that are “unaffordable” (as a 30-50% percentage of their income), while 21% have housing costs that are “severely unaffordable” (at over 50% of their income). So much for Mr. Kent's non-answer, and the demonizing of homeowners as "wealthy." And when the even higher property taxes force those homeowners to sell, their homes may be bought and warehoused, like so many in the past. Perhaps the Council members and the Mayor assume that there will be space for these homeowners in the new “affordable housing” project - but more likely they're not even thinking about them, as only renters seem to be included in their "affordable housing" calculations.
DeleteWow 70 apartments plus another 70 at least in buildings owned by Galvan that will be renovated someday maybe that’s 140 new apartments in Hudson. Shouldn’t the priority be the already existing buildings owned by Galvan ?
ReplyDeleteGalvan does what makes the most money for galvan
DeleteWhat no one is talking about is how much this will cost the other tax payers in school taxes. each student costs 29,000 dollars per year. for 12 years. that is over 300,000 dollars per pupil. times 10 times 20 ??
Deletethe costs of this building are huge to the other tax payers of hudson.
the PILOT SHOULD BE MORE LIKE 300,000 TO 400,000 PER YEAR.
in Hudson, no one does the difficult math that it takes to figure out the real costs of these buildings.
http://cms3.revize.com/revize/hudsonny/Common%20Council/Galvan%20Webpage/Hudson%20-%20PILOT%20Evaluation%206.2020.pdf
ReplyDeletePage 7 of this pdf discusses not for profit status for Galvan and PILOTS.
Galvan, mayor announce 80-unit apartment project
By Abby Hoover
Columbia-Greene Media
Feb 21, 2020 Updated Mar 2, 2020
“We sat down with the state, and a few other agencies as well, to discuss some of the housing needs in Hudson, so there’s going to be some things in the future that I know Galvan will be applying for with the state,” Johnson said.
"The city will not have any financial obligation to the project, Johnson said."
As a City of Hudson Taxpayer, I need the Mayor to explain what he means by "The city will not have any financial obligation to the project, Johnson said." I want to know how
to stop Galvan making it a NFP for themselves.
“No financial obligations...” but maybe a nice big batch of property assessment reductions.
DeleteAny parking studies in Hudson in the past few years has been a joke! Especially around the library, senior center, and any community events held at that location and now with the COARC day care coming soon. Also Northern Rivers on State & N. Fifth Streets with their employees and clients. Although all the programs and services provided are excellent for the area, no consideration is ever given to the residents in that area as far as being able to park near their homes. There were parking lot areas around the former armory, but were walled in and filled in with landscaping. Nice but not practical. Because of Covid-19, of course the parking has been better for the time being, but whenever things get back to the new normal, we'll see!
ReplyDeleteIf Hudson is going to build for more density, and it should, there should be a concerted effort to provide amenities to residents within city limits to minimize the necessity for automobiles.
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ReplyDeleteThe fact they City of Hudson continues to hand out PILOTS, especially to Galvan, who has left many of his Hudson properties, for years in disrepair, is financially unacceptable. His sucking the dollars out of the City who continues to enable him, results in the burden of increased taxes on everyone else, to make up the deficit caused by rampant tax breaks offered, and acceptance of innumerable not for profit schemes. If there is no oversight of the City's inept financial decisions, then they will bring the City to ruin.
ReplyDeleteThe house and yard immediately next-door to me are totally derelict. Almost no effort is made; it's an utter disgrace. On the other side of my property a Galvan-owned structure is about to collapse.
DeleteThe mayor has to learn how to do the math on what it is going to cost the city of Hudson and its citizens to have this hulking building in the town.
ReplyDeleteYes Galvan is going to make huge amounts of money -- guaranteed by the federal and state governments, in rents from these apartments.
70 apartments at 2000 dollars per month is $ 140,000 per month as a rent roll, or a total of One Million Six hundred eighty thousand dollars per year. $ 1,680,000 yes that is right. Huge money.
and the PILOT is $ 80.000 ??? Wow that's a good deal for the already immensely rich Galvan. how dumb are we about money ? and costs ??
And, the best part ? the loans are provided by the state.
that is a conservative estimate of Galvans income from this. If he gets 3000 per apartment his income skyrockets to $ 2,420,000 per year.
And what will it cost the naive and math challenged City of Hudson ? School fees, maintenance, police costs, plus not very much in sales taxes generated by the people.
A huge cost to Hudson per year that could approach 1 million dollars that no one but the tax paying citizens of Hudson will be forced to support annually.
Of course all those "foundations" in town that pay no taxes will pay nothing. A great deal for the millionaire socialists who have structured their lives so they live off the fat of the government tax free while the average people get stuck with the bills. and an enormous money maker for Galvan.
I call it Lambs to Slaughter -- the naive and good people of Hudson.
No one holding political office in Hudson, has been challenged with financial accountability of their decisions; they continue to freely give out tax breaks to the wealthy on the backs of the property owners who carry the burden of the deficit it causes. I say call in the State Comptroller to do a financial audit, to get to the bottom of this situation plaguing the City. Something smells here. Where's the oversight?
ReplyDeleteSorry, all of this is perfectly legal according to the tax code of the United States of America. And the State of New York.
ReplyDeleteIf you look at "foundations" in Hudson NY or New York City, or in Los Angeles,or wherever, they are organized along strict guidelines of law and accounting.
Any individual with assets can organize a foundation, for their own interests in "giving", for whatever causes they choose, and, as long as they follow these long existing rules, form the foundations for their own purposes, even though these may just be a device to shield them from paying taxes. Historically, this has been going on since the income taxes were invented.
in Hudson,it is a great way to avoid paying real estate taxes and to make money tax free, by paying yourself management fees and allowing the foundation to pay expenses on your behalf. In Hudson, you have an enormous operation like Galvan, and smaller operations like TSL, Basilica and others all holding very valuable real estate away from the tax man, while benefiting from those subsidies and others.
All you need in America is a good accountant and a good lawyer, and the wish to avoid taxes. In Hudson over 40 % of the property is held in this format. Good luck breaking the tax code of the United States of America. Its too big a job for the people of Hudson to tackle.
j kay, I just saw my school taxes and had a metaphysical revelation.
DeleteWhaddya say we start a phony church together and let our neighbors carry the burden.
Local governments are under extreme fiscal pressure. Costs for fighting the pandemic are adding up while revenues are falling. This is from NYS. When there is a shortfall in revenues to begin with because of increased operating expenses, it is NOT the time to continue the ill thought out disbursement of tax breaks, granting of PILOTS, or permitting so many not for profits to pile into the City. There has to be thoughtful, fiscally sound leadership. Step down if you think otherwise.
ReplyDeleteIt's as if the national post-9/11 strategy to continue shopping is supposed to work in today's world too. But we cleave to the momentum of pre-Covid planning at our peril.
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