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The Tompkins County Industrial Development Agency today, by a 2-4 vote, declined to provide Arrowhead Ventures a requested sales tax exemption and Mortgage Recording Tax abatement related to construction of its mixed use development adjacent to the Shops at Ithaca Mall in Lansing.  Earlier this year, the IDA approved a payment-in-lieu-of-tax (PILOT) financing agreement, for housing and wetlands elements of the project, which also includes preparation for retail development in the form of a BJ’s Wholesale Club.

Developers requested a construction cost-related exemption from state and local sales tax estimated at more than $172,000 and an abatement of the New York State Mortgage Recording Tax valued at $25,000, citing unforeseen expenses, including those incurred from extended weather-related construction delays.  Such abatements, it was noted, are typically provided to PILOT projects, but were not this time around due to the unique nature of the financing, and that it is also rare to seek exemptions after a project is underway. 

Members expressed reluctance to approve the request, especially in light of the fiscal pressures the County faces.  Legislator Jim Dennis advanced a modified proposal that would have abated the Mortgage Tax and only the State portion of the sales tax, cutting the total exemption to $111,000—which failed by the 2-4 vote (only Dennis and Chair Martha Robertson voting in favor; member Larry Baum was excused).

The IDA also took a first look at a draft incentive plan for the Lansing Town Center project, which has been envisioned and planned in the Town for close to two decades.  Under an incentive plan, the IDA would offer property, sales tax, and mortgage recording tax incentives for development in the Center project area, similar in concept to the density program in the City of Ithaca.

The Town Center initiative seeks to promote greater density in the area near Routes 34 and 34B, encouraging housing, shops and professional offices, and light industrial use, to increase services for residents and build the tax base .  County Planning Commissioner Ed Marx praised the Town Center project as a “great initiative,” consistent with a strategy that encourages housing and services in development focus areas, a proposed plan his department will unveil later this year.

The IDA, by a 5-1 vote (member Jeff Furman dissenting), expressed general support of the incentive concept and interest in participating in a public meeting before considering a final proposal.  Furman said he needs more information on how such an initiative would fit with other development in the County.

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