092.05-1-85.111
092.05-1-20
I was searching through the COMIDA meeting minutes on their website, looking for any application by I-Square for any P.I.L.O.T. or tax abatement requests, (which I did not find any mention of the project at all), and I stumbled upon a couple of items dealing with Bersin Properties (Congel/Medley Centre) that I found interesting.
In their February 15th, 2011 minutes, County Legislator A. Daniele asked about the status of Medley Centre:
M. Townsend noted that he is not current with his vendors. The extension of the
PILOT agreement is still in negotiation.
In their May 17th, 2011 minutes, Michael Townsend (the attorney for COMIDA and involved in many other authorities, agencies, etc. in Rochester....) believes that June's agenda should have a $135 million financing package for approval.
Well, June's agenda made no mention of Bersin Properties or financing, and we all know he wasn't approved....even though other malls and businesses are getting financing for projects.
Then, in the December 20th, 2011 meeting minutes, I see a blurb about the board approving a resolution for a replacement letter of credit, and a five year interest rate swap agreement.
What does that mean? Is he getting more deals?
When people say "If the stars align".......does that mean "If Congel gets more financial breaks"?
Imagine if you, as a property owner, did not follow through on a contract you signed....would the powers that be show such patience and understanding for you and your predicament? Would they defer payments and help you out financially as much as they could?
Police forcefully remove "squatters" or people from their homes if they can't/don't pay their bills and are foreclosed on - but Congel keeps getting the breaks.
This is one of the many reasons that protestors are occupying your parks and public places. They should occupy Medley Centre - it's certainly not being used for much right now....plenty of empty space to use.
But of course, be patient....be positive....be happy that SOMEthing is coming from that property instead of nothing, right?
I'm going to predict that he won't secure financing, and nothing starts at Medley until 2015. I am hoping that I'm wrong. It could be well into 2019 before he secures financing.
I remember reading the FAQ's about the PILOT on the Town Website. Link.
When will the Medley Centre PILOT Agreement Terminate?
If the developer does not obtain permanent financing for the project, the PILOT Agreement will terminate on January 1, 2020, which is the same date that the existing PILOT Agreement covering the existing mall expires. If the developer does secure permanent financing, however, the new Medley Centre PILOT will terminate 30 years after the first permanent financing on the project.
If I'm understanding it correctly, he can wait until 2019 to secure permanent financing, and the PILOT will expire 30 years after the first permanent financing on the project.
So - maybe by 2019 we'll see some activity there?
11 comments:
But we are protected this time...
I can't believe that they gave him until 2019 for financing!?!
But he will be investing 90 million by April so we don't have to worry.
The stars are aligning and MJD is waiting by the phone..
No problem - cough, cough... :)
The pilot Aldersly and Perticone voted for lets Medley divert pilot tax dollars to pay the mortgage. children of east irondequoit school district will watch hundreds of millions of tax dollars go to Medley Owners and not to the school district.
School Board and town board and their lawyers screwed up the first pilot and then the second pilot. So who the hell thinks they are the right ones to work on the 3rd one? They are the very last people on earth to get it right. All it takes is donations to get things done against the residents and for the developer.
Medley is in an "Empire Zone" - the whole point of that particular designation is to encourage economic growth through a variety of tax incentives.
Medley has a P.I.L.O.T. agreement - COMIDA holds title to the properties, and government entities do not pay property taxes, so they agree to give Congel a LOWER amount to pay instead of full property taxes like everyone else.
He has increment financing - (P.I.F.) which, according to the FAQ's - "It is a method of financing the development by using the value of the project to pay for it."
The whole point of the PILOT was to make sure the project went forward and didn't stagnate. That is why those "milestones" were written in - he'll have to pay a supplemental payment if he doesn't meet the milestones, and they thought that this would encourage development in a timely manner.
Using the whole "economic downturn" as an excuse as to why he couldn't secure financing is a bullshit excuse. The financial collapse happened in 2008 - he got the PILOT in 2009 and at that time had secured financing. He lost it. He had demolition permits and let them expire. Other malls around town have gotten financing....his own father is getting grants and financing left and right for Destiny in Syracuse.....why can't Scotty get any financing?
Not because the banks aren't willing - he is holding off on securing financing because he has until 2019 to do it!
What a rip off! Nobody is doing a damned thing about it either!
grrrrr
Jax said; "What a rip off! Nobody is doing a damned thing about it either!"
Jax, MJD has her eye on our astrology and she is waiting by the phone... :)
Yes, I wonder all of the other malls can get financing but Irondequoit can't. He doesn't have to that's why. Pathetic!
But we are protected this time...
"It is a method of financing the development by using the value of the project to pay for it." There is a reason for the contract term "Pilot Increment".
Why don't other PILOTS use that term? why is that term never mentioned in any other COMIDA deal? Why did't the PILOT agreement just call for pilot payments over 35 years? There is a chart for 35 years of payments. But Board Members voted to use the "PILOT Increment" and the 40 pages of details. So why were those details necessary in the agreement?
Couldn't they have given medley a 35 year simply pilot?
Reason it was not built is simple- -there is absolutely no market need for massive retail center in irondequoit. Never was and never will be.
"there is absolutely no market need for massive retail center in irondequoit. Never was and never will be."
Now that's such a negative way of thinking, isn't it?
How could you even suggest that? Don't you realize the remodeled, or consolidated new library will bring many young families to Irondequoit?
Moving the seniors out of their homes and into Legacy projects will free up housing for those young families who will then pay full property taxes. Unlike those pesky seniors who get S.T.A.R. exemptions and hoard their social security checks for scratch off tickets and bingo, and then expect a tax break. Pssshh!
All those young families moving into town will need a place to shop and congregate, what better place than the Medle...er...LakeRidge Centre - maybe they'll want to get away for a stay-cation at one of the fine hotels overlooking Route 104 and East Ridge Road.
Perhaps doctors and surgeons and rich business people will live in one of the luxurious condos there.
Perhaps, perhaps, perhaps.....
Look, at least you're getting SOMEthing from that mall instead of nothing.
The roughly $350,000 of taxes paid to County, SD, and Town is better than NOT getting the roughly $1.5 million in full property taxes to split between the three.
The unique shops and restaurants and hotels and movie theaters and condos will drive the economics of Ridge Rd. to new heights.
MJD is waiting by the phone for Congel to call - and she said on WXXI recently that she hopes to hear that he's signed on for permanent financing.....soon....and hopefully he'll start construction in the fall.....
.....the fall of what year is anyone's guess.
geeeesh---don't you listen?
Supervisor july 2011 board meeting:
"We are in a situation that we need to be very careful. If the developer were to pull out and go into bankruptcy that would have nothing. The Towns not in the commercial real estate business and we are also tied in a pilot with the EISD as well as the county. If he chose to go into bankruptcy he could go in tax certiorari and have the assessment lowered considerably. We have crunched the numbers with a declining assessment to determine what the tax implication would be for the Town of Irondequoit. Currently the PILOT agreement guarantees us a tax payment higher than those other scenarios.”
Daurizio will not discuss numbers, share numbers, not speak about them. They were denied under FOIL. She refuses to discuss options, scenarios with residents.
The town is likely secretly changing the pilot so it will fit whatever officials want it to. Donations rule in Irondequoit.
Only Town Officials would make a deal that allows for no performance before receiving benefits.
Tax with no agreement=$1,747,300
Town takes $355,901 and says thank you.
Now it's fall for something to happen at medley? Last week she said she was optimistic construction could start in the spring. channel 10 article
Nothing wrong with being optimistic, I think. I want a town supervisor who is an optimistic person even when things do seem at their darkest.
I suppose....but....being optimistic doesn't always get things done.
Would you rather I play my violin and tell you everything is going to be ok and I hope we'll survive the boat sinking - or do you want me to go get the life jackets and find out where the lifeboats are?
I suppose I could sit there and say I hope I find those life jackets and lifeboats.....soon.
I give her credit for her patience and optimistic outlook - but not on this Medley debacle. I think she's pretty bubbly and nice and I like that, and I truly believe that you can catch more flies with honey than you can with vinegar....but I also truly believe that lighting a fire under someone's ass can get them to move pretty damn quick-like.
I prefer those fireplace matches in certain situations.
speaking of special districts..what is up with SB Water and this "forensic Audit" reported in the D&C?
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