Widewaters/Columbia County: Press Coverage

Widewaters now wants tax breaks for Greenport plaza
by Chris Simonds
The Independent
Friday, April 11, 2008

Hudson--On second thought developers of the Greenport Commons shopping plaza might like some tax breaks after all.

"I don't want to be here," said Widewaters Group representative Marco Marzocchi at Thursday's meeting of the Columbia County Industrial Development Agency. "The only reason I'm here is the economic situation in our country."

Mr. Marzocchi shepherded the Greenport Commons project through the town's site plan approval process last year. At that time, Widewaters said it would seek no Payment in Lieu of Taxes (PILOT) or other breaks from the town or county.

But with retail sales down and the larger economy wobbling, he said yesterday, "How do we keep this project on the radar screen? By reducing costs as much as possible."

Widewaters seeks:

A 10-year PILOT that would halve the property's assessment the first year and 40% the third year, and so on down to a 5% assessment reduction the 10th year. Albany lobbyist and Kinderhook resident John J. Faso, who accompanied Mr. Marzocchi, pointed out that a developer is entitled to such a PILOT under the state's General Municipal Law, unless a local ordinance provides otherwise.
A break on sales tax on construction materials for the project.
A reduction of the county's 1.25% mortgage tax.

None of these advantages would apply to the planned Wal-Mart super center at Greenport Commons. Wal-Mart has already bought land and will build its own store there. Other properties will be built by Widewaters and leased to occupants.

Mr. Faso told The Independent that Wal-Mart could apply to the county Development Agency for its own tax breaks.

Wal-Mart is the only occupant definitely on board for the 565,000-square-foot plaza; Mr. Marzocchi mentioned "proposed" Lowe's home improvement and Kohl's department store locations.

He presented figures compiled by Rochester Institute of technology Professor Frank Sciremammano Jr., showing that when fully built and occupied, Greenport Commons would add $10.9 million in sales tax revenue, half of which would go to the county and its municipalities, adding to the $9 million local share currently received.

Mr. Sciremammano predicted a new gain of 954 full-time equivalent jobs once the plaza is fully occupied. Both his sales tax and jobs figures are adjusted to reflect the closing of the current Wal-Mart down Fairview Avenue.

When Agency Board Chairman Bruce Bohnsack asked for comments from the public (later noting "this is not a public hearing") the possible PILOT and other tax advantages received a cool reception.

Kinderhook Supervisor Doug McGivney (D) praised the infrastructure improvements and shopping opportunities that a much smaller Widewaters project brought to his town.

But, he said, "We need those tax dollars--we shouldn't finance this project at the expense of the taxpayers."

Hudson Supervisor William Hughes Jr. (D-4th Ward) said advantages for Greenport Commons will "discriminate against smaller businesses."

Greenport Councilman Tom Fleming (D) summed up the general view: "If Widewaters pays less, someone else will pay more."

The Development Agency board will meet Tuesday, April 29 at 10 a.m. at 610 State Street to consider a preliminary resolution that would lead to further discussion of the tax-break question, including a public hearing. The board will accept written comment until April 22.

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