Legacies Come In All Shapes And Sizes

Second Lieutenant Marjorie J. Rock, U.S. Army Nurse Corps, 1942. Ms. Rock retired from the Army as a lieutenant colonel in 1970 and made St. Lawrence County her home.

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Do You Need An Environmental Lawyer?

Kevin Murphy

If you are buying or selling real estate you may need to hire an environmental lawyer.  

    If the answer is yes then you may need environmental counsel when any of the following arise:  

  • You want to obtain “bona fide prospective purchaser protection” for your property acquisition but are not sure what is required. You need assistance in drafting environmental provisions in a contract of sale in order to protect yourself from risk and future liabilities.
  • The parties to a commercial real estate deal cannot figure out a fair method for allocating the costs to clean up environmental contamination and need creative, workable solutions.
  • “Everyone knows” the property is contaminated because of a leaking tank or an asbestos problem, but no one knows what to do. The lender tells you a Phase I environmental site assessment needs to be prepared, but you know you shouldn’t rely on a Google search to find a qualified environmental consultant.
  • The Phase I Environmental Site Assessment report tells you there are “recognized environmental conditions,” and you do not know how to proceed or if you should proceed.
  • A Phase II Environmental Site Assessment confirms the presence of contamination and you do not know how to proceed or if you are required to report the findings to anyone.
  • You do not know whether environmental insurance is available to resolve some of the difficult problems in the deal.

You need an environmental attorney when you or your client wants to know:  

  • Whether and how the development of the property could meet the requirements of the New York State Brownfields Cleanup Program.
  • How to get the best estimates of the costs of, and how to evaluate the adequacy of, proposals to clean up the property.
  • Whether there is a potential claim against the prior owner for failure to disclose an environmental liability that he knew or should have known about and should have disclosed to the client/purchaser.
  • If there is a viable claim against prior owners in the chain of title.
  • Whether there is a potential claim against an adjacent property owner for contamination on the property that the client now owns. What the scope of your liability is for property damage and personal injury to nearby properties from contamination migrating from your property before and after purchase.
  • If completion of a Phase I ESA is all that needs to be done to obtain “bona fide prospective purchaser” protection.
  • How to get a “no further action” letter from a government agency to meet a lender’s requirements.
  • What the impact of contamination is on the value to your property.
  • Whether, even after cleanup, there is an actionable “stigma” attached to the property.

Associations Hold Installations, Award Honors, Raises Money

Lance Evans

In December, the Jefferson-Lewis and St. Lawrence County Boards of Realtors hold their annual meetings. Included in these are thanking the present Boards of Directors and committee chairs for their service, recognizing milestone years of membership, electing and installing the officers for the next year, announcing award winners, and raising money for various charities. 

    The Jefferson-Lewis Board of Realtors held their Holiday Gift of Giving dinner on Dec. 5. Outgoing President Alfred Netto was honored for his service leading the association in 2019. In 2020, he will begin a three-year term as director. Leaving the Board is 2014-2015 President Elizabeth Miller after serving in various capacities on the Board of Directors for the past decade. 

    The 2020 president will be Britt Abbey. He was installed by 2019 NYS Association of Realtors (NYSAR) President Moses Seuram. 

    The rest of the officers and directors were sworn in by 2019 NYSAR Secretary-Treasurer David Legaz. They include Desiree Roberts (president-elect), Katherine Dickson (vice president), Mary Adair (treasurer), Nancy Rome (recording secretary), and Daniel Bossuot (corresponding secretary). In addition to Mr. Netto, the other four directors are three-year directors Cindy Moyer and Vickie Staie and one-year directors Michael Hall and Terry O’Brien. Walt Christensen will serve as Jefferson-Lewis’ representative on NYSAR’s Board of Directors along with Mr. Abbey. 

    Two special awards were given out. Al Romano, Community Bank, was recognized as Affiliate of the Year. In the nomination, he was lauded for his professionalism, willingness to assist Realtors and buyers, and community involvement. 

    The Association’s highest honor, Realtor of the Year, was given to Desiree Roberts of Lake Ontario Realty. In addition to her work on the Board of Directors, she was cited for her positive attitude, enthusiasm, and having a passion for real estate. Ms. Roberts, a Top Producer for the past four years, coaches youth sports and chairs several charity events in addition to her real estate work. 

    The evening ended with a silent and live auction conducted by Realtor Tyler McDonald. Overall, the Community Service Fund raised over $4,000 this year for area charities. 

    The next day, the St. Lawrence County Board of Realtors held its annual Holiday Lunch and Installation. Sponsored by Seacomm Federal Credit Union, the lunch was attended by Realtors and affiliate members. 

    Richard Wood, the 2019 president, was thanked for his two years as president. He will continue to serve on the Board of Directors as the immediate past president. 

    In 2020, the association will be led by Brittany Matott. She was installed by Jennifer Stevenson, the current NYSAR president-elect. In 2020, Ms. Stevenson will be the president of the state association, the first member of the St. Lawrence County Board to be serve in that capacity. 

    The remainder of the officers and directors on the Board of Directors were sworn in by 2019 NYSAR President Seuram. The officers installed include Wendy Jane Smith (vice president), Doug Hawkins (secretary), and Elizabeth Trego (treasurer). In addition to Mr. Wood, the remainder of the governing board will be, as directors, Gail Abplanalp, Tracy Bernard, and Lucille Kassian, with Debbie Gilson serving as St. Lawrence County’s representative on NYSAR’s Board of Directors with Ms. Matott. 

    For the second year, the association bestowed Affiliate of the Year and Realtor of the Year honors. The 2019 Affiliate of the Year is Randy Deshaies of Elite Home Inspections. He was cited for his knowledge, wit, thoroughness, and positive attitude. Mr. Deshaies supports numerous Realtor related events such as the annual Agent Day and the WCR Top Producer event. 

    The Association’s Realtor of the Year honoree is Joel Howie, owner of JC Howie Appraisals. Mr. Howie’s nominators noted his quiet, efficient, and cheerful manner. While he has served on the association’s Board of Directors for three years, it was also noted that he has been on the Canton Day Care Board as well as other community organizations. He is an owner of Canton Apples, a farm specializing in heirloom and uncommon apple and pear varieties. 

    Over $3,700 was raised for St. Lawrence County food pantries during an auction led by Scott Boyer. 

    The Women’s Council of Realtors Tri-County Network elected its 2020 officers recently. Linda Fields will serve as president. Rounding out the leadership team will be Amanda Mattimore (president-elect), Mary Adair (treasurer), Jennifer Flynn (membership director) and Lisa L’Huillier (rogram director). 

Reflecting Back on 50-Years of Environmental Conservation

Randy Young

The New York State Department of Environmental Conservation (DEC) will celebrate its 50th anniversary later this year with a series of regional and statewide events to mark the occasion. DEC was established on the first Earth Day celebration on April 22, 1970. Since that time, DEC has played a major role in nearly every environmental milestone in New York’s history, including the remarkable recovery of the bald eagle, recovery of trout waters from the effects of acid rain, and the largest addition to the Adirondack Park in more than a century, completed in 2016. 

    “For 50 years, New York State has set the national standard for environmental excellence by advancing responsible and proactive policies to protect the planet,” said Basil Seggos, DEC Commissioner. “This year, DEC is reflecting on 50 years of national leadership on the environment and renewing our commitment to tackling the tough challenges the future will bring, particularly climate change, the most pressing threat to our air, land, and water.”  

    Prior to DEC, New York’s Conservation Department was the primary agency responsible for enforcing environmental regulations and protecting the state’s vast natural resources for more than a century. Funding for the Conservation Department came from the Conservation Fund, which raised money primarily through the sale of hunting, fishing and trapping licenses. In 1970, according to a survey of Americans at that time, 70% agreed that air and water pollution were serious problems where they lived (https://www.sciencehistory.org/distillations Policy & Politics, Richard Nixon and the rise of American Environmentalism, written by Meir Rinde, June 2, 2017). In response to growing national support for strengthening environmental protections, Governor Nelson Rockefeller consolidated all environmental programs under the newly created DEC and unveiled it to the public on the first ever Earth Day. The federal Environmental Protection Agency (EPA) was formed later that year in December by President Nixon. 

    “While there is much to celebrate, our work is not done. DEC’s mission to protect public health and New York’s environment is, and will always be, an ongoing endeavor. In the next 50 years, environmental challenges will continue to emerge, and DEC’s steadfast commitment to meet those challenges head on will be stronger than ever before,” said Seggos. “From policies and programs that are effectively reducing waste, greenhouse gas emissions, and the threat of emerging contaminants to investments to revitalize our communities and increase their resiliency, to the Thin Green Line of Environmental Conservation Police Officers and Forest Rangers patrolling and protecting our precious natural resources and public lands, DEC’s more than 3,000 experts are working across the state and around the clock to ensure the health and prosperity of current and future generations of New Yorkers.” 

    As part of DEC’s year-long anniversary celebration, the agency is releasing a commemorative logo that will be used on the DEC website, in printed materials, and other promotions throughout 2020. DEC’s Division of Fish and Wildlife will incorporate the logo in the yearly Habitat Access Pin to commemorate the anniversary. The new Habitat Access Pin will be available at license issuing agents statewide beginning in August. Beginning in January, the agency’s history of significant environmental accomplishments will be memorialized on DEC’s website, via email, social media channels using the #DEC50 hashtag, and in the Conservationist Magazine and Conservationist for Kids. DEC will also host a series of regional and statewide events throughout the year, including launching a new Geocaching Challenge – DEC will designate 50 properties across the state where geocaching canisters will be hidden with information inside on how to receive a prize. 

    For the latest updates on #DEC50 and DEC’s yearling celebration of the agency’s 50th anniversary, visit https://www.dec.ny.gov/about/9677.html. 

What Challenges Will The Dairy Industry Face in 2020?

Jay Matteson

We begin 2020 with nearly 30 dairy farms facing an uncertain outlook. It is hard to write an economic outlook for 2020 when this many of our family-owned businesses are not sure they will have a market for their product. The leadership of Jefferson Bulk Milk Cooperative is working diligently to find new milk markets. They face a daunting task. Jefferson County Economic Development office has offered our full assistance and support. Our elected officials have also offered to assist. 

    The entire dairy industry, especially in New York state, is undergoing a massive change. New York state passed new labor laws in 2019 that are now in full effect as of January 1. Over the last several months, since the laws were passed, farms and their representative organizations were trying to figure out how to comply with the laws. They encountered changes in the regulations after regulatory agencies changed interpretations of the laws. It has been a difficult challenge and farms will continue to do everything they can to comply with the regulations. 

    We are finally seeing recovery in the recognition that dairy products taste great and are healthy components of your diet. People are slowly recognizing, after years of being told otherwise, that whole milk, butter, and cheese are good for you. 94% of American households buy milk. 

    Is there a light at the end of the tunnel? I carefully answer yes. A very qualified yes dependent on many factors. Milk prices are very slowly creeping up. It appears that the dairy industry will see some level of profit from milk sales. It is critical that the United States Congress finally act on President Trump’s U.S., Mexico, Canada (USMCA) trade agreement. This will improve markets for United States milk. The USMCA will benefit other agricultural sectors, too. We are seeing progress in negotiations of other trade agreements that will continue to improve markets for U.S. agricultural products. I am worried, that any new trade agreements needing Congressional approval may be delayed with the presidential election coming in November. 

    Our office continues to search for new dairy processing companies looking for a New York state location. Jefferson, Lewis, and St. Lawrence counties produce over two billion pounds of milk per year. We have enough milk to support another dairy processing company the size of Great Lakes Cheese or HP Hood. We are very proud of Great Lakes Cheese in Adams NY and HP Hood in LaFargeville. These two plants, and the local people who make up their employee teams, are producing some of the best cheddar cheese, cheese curd, sour cream, cottage cheese and yogurt of any place in the world. We are doing everything we can to attract a new dairy manufacturer that values high-quality milk and great employees. 

    We are very excited about what is happening in local agricultural education and workforce development initiatives! We are home to some of the best middle school and high school agricultural education programs in New York state. Alexandria, Belleville- Henderson, Carthage, Indian River and South Jefferson school districts have a long history of offering fantastic agricultural programming and FFA Chapters. A couple years ago, Watertown City School District started an agricultural program and FFA Chapter. Jefferson Community College recently started an agribusiness program offering associate degrees for students pursuing agricultural careers. 

    And just over a month ago, Jefferson – Lewis BOCES announced they will begin an Environment and Agriculture Academy! Juniors and seniors across Jefferson and Lewis counties, starting in fall of 2020, will have a choice to pursue environmental and agricultural programming in their high school careers. BOCES is planning to start an FFA Chapter as part of this new academy. This is great news for school districts without agricultural programs as they will now have this option through BOCES. After many years of hard work, this fall we will offer a complete pathway for all students in Jefferson and Lewis counties to pursue an agricultural career. Students will have the opportunity to pursue agricultural careers either in their local high school or at Jefferson – Lewis BOCES, advance on to Jefferson Community College, and then attend a four-year program at a SUNY school. 

    Yes, 2020 will offer difficult challenges as our dairy industry deals with the changes happening. We are excited to see growth in local food production, and exciting developments in agricultural workforce development. Agriculture has always been a strong foundation to our local economy and will continue to be that bedrock we build upon. 

Five Tips For Starting Fresh With Your Business

Jennifer McCluskey

As we start with 2020 it’s a great time to think about how you can freshen up your business to grow and have a greater impact this year. There are a few simple things that you can do to start your business off right:

Tip 1: Take Care of Yourself
Small business owners are some of the hardest working people I know. Long hours, no sick leave, and being the one in charge of all the moving parts can wear on you after a while. Frequently your needs get pushed to the side so that your business can succeed. While this can be necessary, it also means that occasionally you do need to take care of yourself. Take time out for you, whether it’s an actual “unplugged” short vacation (scary, right?), or a weekly yoga class, or even a Saturday hiking in the mountains with your family, do what you need to refresh yourself. You’ll return to your business rested and more able to see the big picture.

Tip 2: Get Organized
Getting organized will help you cut down on wasted time. Have you found yourself looking for a file for over an hour since you didn’t put it in the right folder? (Speaking from experience on that one). Or do you frequently forget tasks? During one of the slower times in your business, it can be a good idea to declutter, get your systems back in place, or try a new time management technique. I’ve found the yearly file cabinet purge and restructuring is really helpful for when business gets too busy later. There are also a lot of apps that can help you get organized. A couple of my favorites are Quickbooks Self-Employed for keeping track of business income, costs, and mileage; Cozi, a free calendar system; and Colornote which allows you to set Post-it note reminders on your phone. Also see what tasks are “time wasters” and see if there are any that you can outsource. Getting a bookkeeper to keep track of the giant box of receipts, or a Virtual Assistant to help with scheduling and returning emails may be more cost-effective than you think if they allow you to spend more time on tasks that create sales.

Tip 3: Improve Your Customer Service
Take a moment to see if there are any things you can do for your customers to improve their experience. For example, do all of your employees greet your customers with a smile? Now might be a good time to check in about that. Ask your customers if there’s anything you can do to improve, either off-line with conversations or comment cards, or online by getting Google or Yelp reviews. If there’s something that you can improve on, they’ll tell you. More reviews also help bring more people to your website. Do you have really great customers who refer a lot of business to you? Maybe get them something special as a thank you.

Tip 4: Get To Know Your Finances
If you feel like you don’t have a good handle on your expenses or know the streams of income that are most important to your business, it might be a good time to get your bookkeeping in order. Whether you keep books by hand, Excel, or use a software program like Quickbooks, it is very important to know your profit margins and overhead expenses. Making sure you do your data entry in a timely manner can save a lot of headaches at tax time and can help you keep a better eye on changes you might need to make in your business. For example, your prices may have to change to match with different costs. Take a look at your numbers and see how you feel about where you are.

Tip 5: Meet With the SBDC!
Would you like to do some of these, but just don’t know where to get started? That’s what we’re here for! The Small Business Development Center offers FREE confidential business counseling, and we can help you with any of the above tasks, and more. Just contact the office closest to you. You can reach the SUNY Canton SBDC at (315) 386-7312, SUNY Canton SBDC at Clinton Community College at (518) 324-7232, or the Watertown SBDC at JCC (315) 782-9262. We’d love to help.

For The Love Of Community: Superheroes without Capes

Lt. Col. Jamie Cox

The people who’ve made Northern New York home have come from all over America. The vast majority have generational connections to the north country. However, some arrived on orders from the Army. Others journeyed north to raise their family. A few came to be part of something special. 

    There is an extraordinary breed of individuals amongst us who rise above the the rest. They are servants to the community. 

    The list of whom they serve unfortunately runs long. There are victims of domestic violence, families struggling with food insecurity, people who fight mental health conditions, individuals who have become casualties of the opioid crisis, infants born to homeless mothers, veterans in search of work opportunities, adolescents struggling with self-identity, and seniors who can’t afford much needed prescriptions. 

    These selfless servants carry the weight of the world on their shoulders. The stories they hear from their clientele haunt their dreams. And despite the low pay and lack of benefits, they continue to perform miracles day after day. 

    For most who serve, it is a calling: a vocation to help the most vulnerable members of our community. The paychecks they receive are reliant on the generosity of good people, philanthropic foundations and companies who embrace corporate responsibility. When funding dries up, they learn to do more with less. 

    They are desperate for career and job skill training, a cost of living pay raise, benefits, and a clean and professional facility to conduct their business. 

    When they see nationally renowned charitable organizations throwing lavish parties for donors and executives, our local servants cringe at how that image imposes itself on their own company. They fear the effects of the economy on people’s ability to give. They know societal philanthropy is decreasing year after year. 

    And yet they continue to serve. 

    The employees of nonprofit organizations throughout NNY serve to give friends, neighbors, and even strangers hope for a better future. They are passionate to make our part of the country a better place for everyone to live. They do it for the children, seniors, arts, environment and individuals and families in crisis. It’s a willingness to live a simpler life because the sense of fulfillment and pride is more than any paycheck could convey. 

    So to all of those who serve, thank you. Thank you for holding the hand of a teen who’s going through violent withdrawals from drugs and for providing care for toddlers while their parents work. Thank you for teaching people to read and for hugging the senior who’s not able to leave their home. Thank you for driving the veteran to his appointment in Syracuse and for teaching people how to interview for a job. Thank you for feeding the hungry and for educating our children about the dangers of substance abuse. Thank you for guiding teens who have identity challenges and bringing music to our communities. Thank you for protecting victims of domestic violence and for filling propane tanks in the winter. Thank you for saving the river, lake and our forests. Thank you for sacrificing your financial security and for incurring greater personal debt to pursue a life in service to others. 

    Thank you from all of us to all of you who put our neighborhoods and communities ahead of yourselves. You deserve more. You are all – truly – superheroes. 

Lt. Col Jamie Cox, a combat decorated and wounded US Marine Corps (Retired) aviator, is currently the President and CEO of the United Way of Northern New York. He can be reached at Jamie.Cox@unitedway-nny.org.

The Basics of Special Needs Trusts

Timothy Doolittle

Special Needs Trusts (“SNTs”) are an essential tool both when a person with disabilities has assets to protect and when that person’s parents are considering their estate plan. Whether the person with the disability has funds, receives funds from a personal injury settlement, or receives funds and property as a gift, the money must be managed carefully. SNTs (or Supplemental Needs Trusts as they can be referred to) are the best tool to use for asset protection for those with disabilities. 

    The primary goal of an SNT is to preserve a disabled person’s access to needs based public benefits when receiving a lump sum or inheritance. These benefits might otherwise be lost when the individual acquires resources over a given threshold. A person who is disabled may be receiving Supplemental Security Income (“SSI”) on a monthly basis and may have Medicaid coverage to pay for the costs of healthcare. Medicaid and SSI are means-tested and impose limits on resources, so an influx of money from an injury settlement or inheritance could result in a loss of benefits access. 

    An SNT makes it possible to avoid this loss of benefits. When properly drafted in accordance with the law and when properly structured and maintained, SNTs allow money to be used for the benefit of someone who is disabled without jeopardizing benefits access. The assets held in the trust are not counted as resources for Medicaid or SSI calculations but can be used to supplement and enrich the quality of life of the person who is disabled, beyond what governmental benefits provide for. When SNTs are created, it is important to know what specific type of trust must be used. There are two primary kinds of SNTs: first-party trusts and third-party trusts. The unique situation of each person will dictate which type of trust will need to be created. 

    If the money or property being put into the trust comes from the person who is disabled, the trust is a first-party trust. This situation can occur if the individual receives a windfall inheritance, receives a personal injury settlement, or if they simply have built up assets based on gifts from family members. A third-party trust can hold assets that are deposited in the trust directly by any third-party source, like a grandparent, parent, aunt, uncle, neighbor, etc. 

    A first-party special needs trust can be established only by the disabled individual, parent, grandparent, guardian or court. They also can only be established for someone under the age of 65. In some situations, courts would monitor these trusts. The main drawback of a first party SNT occurs when the individual with a disability dies. At that point, the SNT must contain terms that names the state providing Medicaid benefits to the individual as the primary beneficiary of the SNT’s assets. This is known as the “Pay-Back” provision, to allow the state to pursue reimbursement for the costs of care expended during the individual’s life. 

    A third-party SNT can be created by anyone who wants to leave money to someone who is disabled. Third-party SNTs can be funded up to any amount, with any type of asset. The trust can be used for virtually any purposes to benefit the person with special needs, except for that the person’s own money cannot be held in the trust. Often times, parents of a child with disabilities will set up a third-party trust as part of their estate plan, to ensure any inheritance meant for the child will not affect their public benefits. 

    Upon the death of the disabled beneficiary of the third-party special needs trust, the money and property can transfer to any other relatives or beneficiaries that the trust creator chooses. Because the money and assets in the trust never belonged to the person who was disabled, the state has no ability to require a pay-back provision. 

    Special Needs Trusts can provide very important protections for someone with disabilities. If you are in a situation that calls for a Special Needs Trust, reaching out to a qualified attorney well versed in the area is a must. 

Timothy Doolittle primarily focuses his practice on estate planning, as well as asset preservation for individuals. Mr. Doolittle is a magna cum laude graduate of the State University of New York at Buffalo, Honors College. Mr. Doolittle is admitted to practice in New York State and is a member of the New York State Bar Association. Contact Mr. Doolittle by emailing TDoolittle@WladisLawFirm.com.

Revolutionize Your Resolution

Jessica Piatt

With the arrival of the New Year you might be inspired by the occasion to set personal resolutions to better yourself. In fact, you might resolve to travel more, learn a new skill, dedicate more time to reading or even working out. But what about your business? 

    If you want to grow your business in 2020, then you should be making New Year’s resolutions for your business, not just yourself. 

    I’m not talking about lofty goals with desired results set haphazardly. I’m talking about real resolutions. While resolutions are often derived from goals, the two are not the same. A goal is the object of one’s ambition, an aim, or desired result, whereas a resolution is a firm decision to do or not to do something. This year ditch the dusty goals you know you’ll abandon by mid-March and instead revolutionize your resolution by committing your company to a decision and taking immediate action. By making resolutions for your organization (and following through with them) you are deciding to better your business. 

    Decisions are made with intent and often with a strategy to deploy them. You should set your resolutions in the same way. They should be both intentional and SMART: specific, measurable, achievable, realistic, and timely. 

    When you set your business resolutions for 2020, there are two important statements to keep in mind: your mission and vision statements. Your business’s mission statement defines your organization. It is the reason for its existence; thus, it should be the driving force behind everything your company does. Your business’s vision statement describes where your business aspires to be. It serves as the guide for choosing courses of action. Both your mission and vision statements are vital to the development of your organization and should be considered when making New Year’s resolutions for your business. 

    Maintaining that your resolutions should be SMART and should consider your mission and vision statements, here are a few ideas to get you started on revolutionizing your resolutions in 2020.  

Invest in Your Employees 

    This year resolve to invest in your company’s most valuable asset, your staff. By investing in your employees, you make your staff part of the long-term growth for your organization. Business resolutions with a focus on employees through areas such as communication, training, development and recognition, can have a significant impact on productivity and office culture.   

Inspire Loyalty 

    Now, depending on your business or industry, this category can vary but whether it’s your customers, members, or clients, maintaining healthy relationships with your consumer basis is vital for growth. In 2020, set a resolution with your customers, members, or clients at the center of your decision. Consider improving customer service or enhancing retention rates. Your resolution in this area should focus on inspiring loyalty.  

It Starts with You 

    If you want to incite change in your work world, recognize that it first starts with you. Become an example of the change you want to see in your workspace. Your action will inspire others to do the same. 

Change is kindled by a decision. No matter what you resolve to do in 2020, setting SMART goals will prevent you from giving up on your New Year’s resolution in the first quarter and considering your mission and vision statements will propel your business forward. SMART goals with a foundation of your mission and vision statements will help you to achieve your resolutions for a more prosperous year. 

What is a payment in lieu of taxes?

Jay Matteson

A Payment in Lieu of Taxes or “PILOT” is an economic development tool that may mean the difference between a business locating in your community or locating somewhere else in New York State or the United States. The use of a PILOT brings about a gain in the tax base and usually more jobs. A PILOT helps grow the local economy by helping an existing business grow or a new business to start up in a community. 

    The PILOT works by allowing for a “managed” increase in taxes for the business. Let’s use an example to make this clear. A new business comes into the community and buys an acre of land. Prior to the business opening its doors, the acre of land brings $1,000 of tax revenue to the community. After the business opens its doors, let us say the full taxes on the higher-valued property is $20,000. To help the business get started and better manage its initial startup expenses, a payment in lieu of taxes (PILOT) agreement is negotiated. The PILOT may last for 15 years, under which the business would pay 25% of the higher tax assessment for the first 5 years (an additional $5,000/yr.), 50% ($10,000/yr.) for the next 5 years, 75% ($15,000) for the last five years, and then ramp up to the full tax of $20,000 in year 16. This is all new money for the community. The business started out on year one paying more in taxes than was collected before the business opened it doors. More tax revenue for the community. By year 16 the company was paying full taxation on the property. If the PILOT had not been employed, the business may not have started or may have decided to locate elsewhere which equals no increase in the tax base or local jobs. 

    This was a simple example of how a PILOT may be set up. The PILOT helps the company manage its tax increases over a negotiated number of years. The following is a real example of a PILOT negotiated with Great Lakes Cheese Company in Adams in 2007 when they began considering building a new cheese plant. Great Lakes was considering moving the plant to western New York and was receiving pressure to do so. Jefferson County Economic Development stepped in and helped the company by negotiating a 20-year PILOT because of the size of the project and the number of jobs created. As you review the graph, you’ll see the taxes paid by Great Lakes Cheese went up $35,000 the first year of their project and then over 20 years the taxes have gone up in a manageable manner. Great Lakes Cheese built their $86 million dollar plant next to their old plant in Adams. This created jobs, brought new revenue into the community and supported the dairy industry in Northern New York. 

    The Jefferson County Economic Development is responsible for managing the tax incentive tools such as a PILOT. Jefferson County Economic Development staff will work with affected municipalities, such as Jefferson County, a local school district and other municipalities to negotiate the PILOT with the project developer. The goal of Jefferson County Economic Development is to create a win – win situation for everyone involved. The community wins by supporting the expansion of the existing business and adding jobs or through bringing in a new business creating new jobs, new opportunity and a stronger tax base. 

    PILOTS may be employed to assist with traditional business start-ups such as manufacturing and service industries., as well as to attract renewable energy projects – all of which can bring thousands of dollars to local communities. In Jefferson County PILOTS are not available to small retail business, retailers, or food establishments. PILOTs are a good tool to use to grow our local communities.