After a process that went on for eight months, the Hudson Industrial Development Agency (IDA) this afternoon voted unanimously to approve a revised PILOT (payment in lieu of taxes) agreement for the hotel whose working title is 620 Hudson House.
In response to concerns raised by city treasurer Heather Campbell at the September 22 meeting of the IDA that the agreement assumed "no increase in assessment or tax rate," the developer presented the IDA with a new payment schedule that assumes a 1.5 percent increase in the assessment and the tax rate in Year 6 of the eleven year agreement. In the original PILOT agreement proposed, a total of $631,777 would have been paid over the eleven years of the agreement; in the revised agreement, the total over the life of the PILOT is $680,212.
According to the agreement, the PILOT will not begin until construction of the hotel is complete, which must happen within three years. Until that time, the property will continue to pay its current property tax, which is $41,564 annually. The IDA has also agreed to let the developer pay the 1 percent administration fee, which goes to the IDA, in three installments at three benchmark periods: closing of the sale; start of construction; completion of construction.
The project now has all the approvals it needs to go forward except for final approval from the Historic Preservation Commission. In June, the HPC approved the project in concept, based on such compatibility standards as size, scale, and character. The final details of the plans for the restoration of the original McKinstry mansion and the addition still need to be reviewed and approved by the HPC.
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