1993-05-26
SPECIAL TOWN BOARD MEETING
MAY 26,1993
5:00 p.m.
MTG. #40
RES. 315
TOWN BOARD MEMBERS
Supervisor Michel Brandt
Councilman Susan Goetz
Councilman Nick Caimano
Councilman Pliney Tucker
TOWN BOARD MEMBERS ABSENT
Councilman Betty Monahan
Supervisor Brandt -Opened the Meeting Meeting called for the purposes of considering a pilot agreement
in lieu of taxes with AMG Industries. Distributed to the Town Board a proposal which includes a total in
ten years of $63,740. total dollars paid, year one is $4,000. year two $4,400. etc. It has been proportion out
according to the current tax bills or the latest tax bills between the County, Town and Queensbury School.
The total of each of those entities are shown at the total on the bottom. The County would get $13,101. the
Town $898. and Queensbury School $49,741. It is my understanding under the law the structure of this
agreement is totally up to the Town Board, it would normally be done by the Warren Washington County
IDA but they deferred to the Town Board. Under the law it is our call. I called the School Dist. and told
them what was proposed and told them it was imormational and they seemed happy with the imormation.
Councilman Goetz-When I read the audit report that came out from the State they described some
situations that had been done before with pilots like this and mistakes have been made, was that before you
were here?
Supervisor Brandt-What happen agreements were made and different people had the agreements in
different places, not all of the imormation was shared with everybody and then the Town Government
nobody was in charge of collecting this money and what happen because of the Audit all of that was
formalized and now there is a structure to it.
Attorney Dusek-I do not think it was so much in terms of the legality of the contracts as it was the follow
up...
Councilman Goetz-Nick if they get the small Cities Grant we still have $350,000 already...so it would be
on top of that.
Attorney Dusek-When the agreement is entered into with Warren Washington County IDA on the tax
structure assuming that this is the tax structure I do not know whether you have had a chance to look at it,
that everybody has agreed to. My understanding is that the agreement will also be clear in terms of the fact
the company will be paying, Lighting, Water, Sewer, Library and Fire District Taxes.
Mr. John Lemery-It is very clear in every agreement that special districts are not exempt.
Supervisor Brandt-This schedule to distribute the money should be attached to this resolution.
Attorney Dusek-It is part of the Board resolution, to make it part of the record that this memorandum that
E.J. prepared for Mike, staple it to it.
Councilman Tucker-When does this become official, when do they
start.
Supervisor Brandt-As soon as we pass this resolution.
Attorney Lemery-At the completion of the project, when it would normally go on the rolls this will kick in
and take effect.
Councilman Tucker-It will go on the tax rolls when?
Attorney Dusek-Taxable status day is March 1 st. assuming they complete the project late in the year the tax
assessor will examine the condition of the property as it exists as of March 1st.
Councilman Tucker-It will go on the tax rolls then.
Attorney Lemery-The parcel will be conveyed directly from the QEDC to the IDA, the IDA will hold title
on an installment sale agreement for a period of time they are ..the debt, at the end of that buy it back for a
dollar. While it is held by the IDA the pilot payment is in effect if at some point they pay off the obligation
the pilot goes with it and it goes on the roll, because there is no longer an exempt status. The exempt status
is brought about by the fact that the IDA is a statutory public benefit corporation.
RESOLUTION APPROVING A PAYMENT IN LIEU OF
REAL PROPERTY TAX PROPOSAL FOR AMG INDUSTRIES
RESOLUTION NO. 315, 93
INTRODUCED BY: Mrs. Susan Goetz WHO MOVED FOR ITS ADOPTION
SECONDED BY: Mr. Nick Caimano
WHEREAS, the Town of Queensbury has been notified that GMA Holdings (the "Applicant"), a
New York Partnership, has submitted an application for industrial development revenue financing to the
Counties of Warren and Washington Industrial Development Agency (the "Agency") for the purpose of
financing a project to be constructed on land located on Dix Avenue in the Town of Queensbury, currently
owned by the Queensbury Economic Development Corporation, and
WHEREAS, said project shall consist of the construction and equipping of a manufacturing
facility to house the manufacturing operations of AMG Industries, Inc., and
WHEREAS, in connection with said financing, the Applicant has requested that the Agency enter
into a payment in lieu of real property tax agreement to establish the payments in lieu of real property taxes
which are to be paid with respect to the property during the time in which the Agency is the owner of the
project site, and
WHEREAS, the Agency has requested of the Applicant that it seek and obtain the consent of the
Town of Queensbury with respect to the payment in lieu of real property tax proposal, and
WHEREAS, the proposal for payment in lieu of real property taxes presented by the Applicant is
as set forth on Schedule "A" attached to this resolution, and the proposed amounts to be paid in lieu of
taxes as calculated by the Accounting Department for the Town is attached as Schedule "B", and
WHEREAS, the Town Board of the Town of Queensbury, having found and determined that the
construction of the above described project will be of benefit to the residents of the Town of Queensbury,
NOW, THEREFORE, BE IT
RESOLVED, that the Town Board of the Town of Queensbury hereby approves the proposal for
payments in lieu of real property taxes with respect to the GMA Holdingsl AMG Industries, Inc. project as
described in Schedules "A" and "B" attached hereto.
Duly adopted this 26th day of May, 1993, by the following vote:
AYES
Mrs. Goetz, Mr. Caimano, Mr. Tucker, Mr. Brandt
NOES
None
ABSENT: Mrs. Monahan
SCHEDULE "A"
PAYMENT IN LIEU OF REAL PROPERTY TAX PROPOSAL
GMA HOLDINGSI AMG INDUSTRIES, INC. PROJECT
DIX AVENUE, QUEENSBURY, NEW YORK
A. During construction and following the exemption of the subject property on the tax rolls of the
various taxing entities, annual (pro-rated) payments in lieu of real estate taxes in the aggregate amount of
$500.00 would be payable to the Counties of Warren and Washington Industrial Development Agency (the
"IDA") for re-distribution to the appropriate taxing entities.
B. Upon completion of the project, annual payments in lieu of real estate taxes payable to the IDA for
redistribution to the appropriate taxing entities would be as follows:
YEAR
AMOUNT
1
2
3
4
5
6
7
8
9
$4,000
$4,400
$4,840
$5,324
$5,856
$6,441
$7,085
$7,793
$8,572
10
$9,429
SCHEDULE "B"
DISTRICT
TAX RATE
PER $1,000
ASSESSED % OF
VALUE TOTAL
County
Town
QBY School
3.65
0.25
13.86
20.55%
1.41%
78.04%
TOTALS:
17.76
100.00%
PROPOSED AMOUNTS TO BE PAID IN LIEU OF TAXES
$
$ $ QUEENSBURY $
YEAR COUNTY TOWN SCHOOL TOTAL
-------------------------------------------------------------
1 822 56 3,122 $4,000
2 904 62 3,434 $4,400
3 995 68 3,777 $4,840
4 1,094 75 4,155 $5,324
5 1,204 82 4,570 $5,856
6 1,324 91 5,026 $6,441
7 1,456 100 5,529 $7,085
8 1,602 110 6,081 $7,793
9 1,762 121 6,689 $8,572
10 1,938 133 7,358 $9,429
-------------------------------------------------------------
TOTALS: 13,101 898 49,741 $63,740
-------------------------------------------------------------
Councilman Caimano-Councilman Monahan understood that we were going to vote on this tonight and she
is not going to be here...Attorney Dusek-She consented to the meeting though... Councilman Caimano-She
consented to the meeting the other night.
Clarification on Resolution No. 304-93... Supervisor Brandt there was a resolution passed that we would
buy two million dollars worth of liability coverage instead of three millon, we would revisit that once we
got quotations on another million dollars, and the quotation came in faxed this afternoon...resolution was
introduced by Mr. Michel Brandt and seconded by Mrs. Susan Goetz... Supervisor Brandt-We have ordered
the insurance because it was to expire at midnight.
Discussion Held by AMG Industries-They showed a rendering of the
proposed building... manufacturing section would consist of 60 people...in three years an additional
50...that is the reason for the expansion...
Discussion held regarding meeting with the Rescue Squads, re: West Glens Falls Emergency Squad
proposal for altering their contract...Tentative date set for June 2nd at 7:00 P.M...
On motion the meeting was adjourned.
Respectfully submitted,
Miss Darleen M. Dougher
Town Clerk-Queensbury