posted on October 17, 2011 13:03
The developer and owner of Batavia's Towne Center Plaza, which includes the slated-to-close Lowe's Home Improvement store, will remain beholden to the county for its property tax obligations – even without a tenant in the plaza's main building.
COR Development of Fayetteville, NY is responsible for the development and ownership of 10 such sites across New York State. Each of their developments is a strip-style mega building or multi-building plaza, each housing large chain retail stores and restaurants.
In 2008, COR received the standard large-development incentive package from the Genesee County Economic Development Center. That package included a one-time mortgage tax exemption; a sales tax exemption on materials purchased for construction; and a payment-in-lieu-of-taxes (PILOT) exemption. The tax breaks are predicated upon the expectation of new jobs.
The mortgage and sales tax incentives have long since run-out, but the PILOT was a ten-year deal. Under the terms of the PILOT, the development company essentially pays a reduced county property tax.
GCEDC Communications Director Rachel Tabelski tells WBTA News today, even though Lowe's will close and leave the Towne Center "anchor store" space unoccupied for a time, COR will still be obligated to make PILOT payments for the property.