As expected, the Galvan Foundation presented its requests for PILOTs (payments of lieu of taxes) to the Hudson IDA (Industrial Development Agency) today. They are requesting two different PILOTs--one for the building proposed for 75 North Seventh Street, and one for the building proposed for 708 State Street.
For 75 North Seventh Street, which would be mixed income housing built with public financing, the PILOT sought is patterned after the PILOT agreement now in place with Hudson Terrace. The PILOT agreement would be for thirty years, and the payment in lieu of taxes would be 32 percent of what would actually be owed in taxes. It is not clear if the assessment on which the property taxes are calculated would fluctuate during the 30 years or if it would remain the same as it was when the PILOT was initiated.
For 708 State Street, which will market rate apartments built with private financing, Galvan is seeking a PILOT to twenty-five years. For the first ten years, there would be a 75 percent reduction in property taxes. In the remaining years of the PILOT, the reduction would decrease incrementally until in Year 25 it would be just 5 percent.
The commercial spaces in both buildings would not be subject to the PILOT.
Victoria Storrs of Camoin 310 presented the cost-benefit analysis for each building, after noting that "without PILOTs the project is unfeasible" and asserting that "the city is receiving more than it is forgoing." In the case of 75 North Seventh Street, the project would bring $1.63 in the form of new sales taxes, property taxes on the commercial spaces, and the payments in lieu of taxes for every dollar in forgone taxes--property tax, sales tax on construction materials, and mortgage tax. For 708 State Street, the benefit would be $2.09 for every dollar of forgone taxes.
When the project was presented to the IDA in January, Alderman Tiffany Garriga expressed concern that there were not enough three-bedroom apartments for families being planned for 75 North Seventh Street, the mixed income building. Today, Dan Kent of Galvan announced that they were increasing the number of three-bedroom apartments in the lower two income tiers and decreasing the number of three-bedroom apartments in the upper two tiers of income levels.
COPYRIGHT 2021 CAROLE OSTERINK
Sales taxes on construction materials? There are no construction material vendors in the city since Hudson Electric closed. That’s some cost-benefit analysis. Once again, the Galvan proposal is more holes and less details.
ReplyDeleteWhy do obscenely rich people need to keep applying for PILOT grants?! I don’t get it.
ReplyDeleteThats how they stay obscenely rich - they spent your money - not theirs.
DeleteIts the American Way. Who do you think is coming up with these ideas ? Congress.
Deleteit is the Industry of Poverty Proponents.
OPM = other people's money
DeleteGalvan truly has colassal chutzpah assuming that their market rate building merits any PILOT tax advantages at all ! Again their no parking plans only show contempt for everyone who is not them. The projected numbers are falsely magnified in their favor whenever possible.
DeleteHolst, How do you think they became rich? With Galvan, you have to go back to the original sin and ask how he lost his legal license. --peter meyer
ReplyDeleteHere is the real analysis. The 75 north 7th St building will consume a huge amount of services and basically pay for nothing. As with Hudson Terrace, where perhaps 50 % of all police calls are generated, the same will be true for this building.
ReplyDeletethe school taxes for everyone else in town will sky rocket even more. the building will have even more children in those 3 bed room apts with parents that have no income.
the occupants by definition are poor, so they will generate very little in sales taxes and consume a disproportionate amount of already very expensive services.
Hudson needs sales taxes and real estate taxes that are at a market rate. 40 % of the real estate is already off the tax rolls due to these kinds of development.
Yes, Eric Galloway is the one person in Hudson who actually can afford the insanely high taxes, but just sold his house on Allen St when he could not get his taxes reduced.
If he cannot afford the Hudson City taxes, who can. He is a billionaire.
Sorry to be so harsh about this, but the numbers are ridiculous and bad for the working people of Hudson who pay these already high taxes.
I really tried to keep an open mind but it is just too easy with Galvan. They are truly a stereotype of greed. How very disappointing !
ReplyDeleteThese are all great comments and it's telling that City still wants Galvan feasting at the public trough. The big question is why Galvan, which has ooodles of money, needs a PILOT (which stands for Payment IN LIEU OF taxes)--it certainly doesn't deserve one. In other words, why is the taxpayer being asked to subsidize a corporation that isn't even located in Hudson? Has the City ever looked at Galvan's books? The Council spent lots time and money going after AirBnBs, with no evidence, but turns a blind eye to a multimillionaire capitalist. --peter meyer
ReplyDeleteThe most telling line in the presentation is that without the PILOTs, the projects are not viable. That means Galvan and its minions are not willing to do it unless the Hudson tax payers and renters pay for it. How is this a benefit to anyone besides Galvan and those on his payroll? And what must we conclude from our elected "leaders" who shill for him with such gusto?
ReplyDeleteAside from taxes and the anti-Galvan sentiment, I am surprised no one seems to be considering the negative long term effect and precedent this sort of construction would have on the City of Hudson. These large scale buildings would permanently alter the character of the neighborhood and set the stage for a continued, government sponsored urbanization of the city. Isn't the government elected to represent the existing residents? How does steering the direction of Hudson towards large scale apartments and urbanization benefit the residents? Anyone potentially moving into one of these buildings is currently residing someplace else, what is the crisis?
ReplyDeleteIf the folks in City Hall think rents are too high, regulate rents. Importing more people, many who will be social dependents, isn't going to solve anything. It will make the life of people living in that neighborhood very uncomfortable. It will also lead to more developments, expansion of service businesses on Fairview, more traffic, widening of roads and degradation of the surrounding natural landscape.
Why not focus on improving the infrastructure that already exists? If something needs to be built in that space, create lots and build some houses that fit into the character of the neighborhood. Intentionally transforming a quiet residential street into a block right out of West New York doesn't seem like responsible representational government.
Let's circle back to the beginning. Only one of these buildings has "affordable housing" and how many units are these now? 50? Again, why doesn't Galvan just use their existing empty housing stock and build those units? That would revive many parts of town. This Depot District is just an excuse to take advantage of anything they can get away with.
ReplyDeletehttps://www.sampratt.com/sam/2012/04/cbs-on-lantern.html
ReplyDeleteWow ! I'm sure others were aware but I was not. Truly deplorable in every way. Apparently they will stoop to scams too, perverting honorable intentions with fraud. Thanks you Holst and Sam Pratt for this info.
DeleteYou might also be interested in this: https://gossipsofrivertown.blogspot.com/2012/04/conceived-in-iniquity-and-born-in-sin.html
DeleteThanks Signe and Carole. I googled a few key words and Sam Pratt’s old post was literally the first thing that popped up, it took me less than 30 seconds. I honestly had no idea about the history, I was just trying to learn more. I hope that others in Hudson know how to use Google.
Delete“Fool me once, shame on you; Fool me twice, shame on me”.
DeleteSo this was quite an education for me about the origins of Galvan, ABC, Lantern, etc. I am wondering Carole if you might consider creating a stand alone a primer of the history of the Galvan organization from its inception to the present form, especially as it applies to Hudson real estate. Maybe this was already done or suggested ? I understand Mr. Galloway died recently but obviously his business lives on and has profound effects on Hudson. Didn't I "hear" that Galvan also has NYC/Harlem properties? Maybe this would be a compilation of your past blog posts. It could be organized by building address or by time period or by project. I volunteer myself to help, if you are so inclined. I truly wonder how much of this knowledge the people in local government have. Knowledge is supposed to be power ! My guess would be that everyone knows something but not everything.
ReplyDeleteEric Galloway did not die. It was his partner and spouse, Henry van Ameringen, the "van" of Galvan, who died.
Deleteoops ! Thank you for correcting that.
Delete