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.
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.