Maple Court Deal Could Go Through Without Property Tax Breaks
A New York City company wants to own Maple Court apartments and it's asking the Jefferson County Industrial Development Agency for financing through housing revenue bonds.
"These bonds would be up to $5.4 million, which would be used for purchase and renovations of the project," said IDA director Don Alexander.
As for property taxes, Maple Court already uses a state program called 581a, which lowers the tax bill on low- to moderate-income housing.
"The basic premise is that when a project like this is making money, they pay more taxes than in the time when they're not making money," said city assessor Brian Phelps.
The potential buyer is applying to stay in that program.
But if the buyers follow through with their business plan, they could end up with virtually no tax break at all.
That's because they plan to ask the government for an increase in rent subsidies.
"When that income goes up, if it goes up to what they've proposed, there is not really gonna be a lot of difference between an assessment done under 581a and an assessment purely at market value," Phelps said.
The buyers would still get some other tax breaks by working with the IDA, including sales and mortgage tax exemptions.
Thursday, May 23, 2013, Watertown, NY
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