The 10-year agreement, which still requires approval by the Town of Orangetown, would allow the pharmaceutical company to be taxed at a reduced rate over a 10-year period from 2014 to 2023. Such deals are offered as incentives to draw companies to move into a given area. In this case, the PILOT agreement was negotiated with Cerovene by Rockland Industrial Development, the Town of Orangetown and the Pearl River School District.
Cerovene is moving from a rented property in Valley Cottage to what had been a vacant building in Orangeburg, where hte company plans to spend $5 million in renovations, equipment and expansion. To find out more about the agreement and Cerovene, see this report on Patch.
Pearl River School District Director of Operations Quinton Van Wynen recommended the agreement to the board of education. His memo to the board and the tax schedule built into the deal can be found here. He pointed out that as part of the agreement, an existing tax challenge from the previous owner of the property was dropped. He said that would save the district between $60,000 and $120,000.
The PILOT is for 10 years, which is common, but it does take significant jumps in the third and the sixth year.
"He had a need to keep the first couple of years low, then increase significantly in the third year," Van Wynen said. "At the end of the 10th year, it will be fully taxed and paying the same as all other corporate citizens of Orangetown.
"I recommend this for the benefit of the district."
The estimated taxes for each year of the PILOT are as follows:
- 2014 -- $100,828
- 2015 -- $102,842
- 2016 -- $111,322
- 2017 -- $113,548
- 2018 -- $115,819
- 2019 -- $154,485
- 2020 -- $157,574
- 2021 -- $160,726
- 2022 -- $163,941
- 2023 -- $167,219
- 2024 -- Fully taxed