Authorizes the Schenectady city assessor to accept an application for a historical preservation real property tax exemption from Excelsior Development Partners LLC

BILL NUMBER:S5197

Title of bill

An act to authorize the assessor of the city of Schenectady to accept an application for a real property tax exemption for certain property in the city of Schenectady, county of Schenectady

Purpose

This bill permits the City of Schenectady to accept a late application for a historic property rehabilitation exemption related to the conversion of an old school building into apartments. If accepted, the bill allows the exemption to be granted and any applicable taxes, fines, penalties and liens to be cancelled.

Summary of provisions

This bill permits the Schenectady City Assessor to accept an application from Excelsior Development Partners for an exemption from real property taxes under Section 444-a of the Real Property Tax Law, which provides a temporary exemption for the rehabilitation of historic property. If accepted, such application shall be reviewed as if it had been received on or before the taxable status date and as if the alterations or rehabilitation of such property had been completed subsequent to the effective date of the exemption.

Justification

Section 444-a of the RPTL seeks to encourage the rehabilitation of historic properties by allowing, at local option, a 10 year tax exemption, with the value of the exemption phasing down over such period.

In 2000, the City of Schenectady adopted a local law to opt into this program. Over the years, the exemption was applied to both city taxes and school taxes.

In 2008, Excelsior Development Partners initiated a project to convert an old school building into apartments, restoring the building to productive use and helping to revitalize the neighborhood. The company sought the historic property tax exemption, with the financial viability of the project, as well as the rents charged to tenants, being based on receiving such exemption. Although the company received the exemption on its city taxes, it was discovered that the School District had never opted into this program and therefore the company did not receive the exemption on its school taxes.

The company subsequently met with officials from the City and from the School District, and the City School Board agreed to opt into the historic property rehabilitation program, as well as several other local option property tax exemption programs. However, at that point the taxable status date had already passed. This bill would resolve this problem by providing the City Assessor with the ability to accept a late application for this specific property.

FISCAL IMPLICATIONS:None

LOCAL FISCAL IMPLICATIONS:There is no fiscal impact for the City of Schenectady, which has been allowing this particular tax exemption since 2000. The City School District has agreed to provide this tax exemption as well. The District will forego some revenue, but will benefit in the long term from the project which returned an old abandoned school into a new productive use as an apartment complex.

EFFECTIVE DATE:Immediately