IDA Talks PILOT For Senior Living Properties
Keeping housing affordable and available is the business of Housing Preservation Inc, according to owner James Carmichael.
Carmichael spoke to the Chautauqua County Industrial Development Agency on Tuesday morning about a Payment in Lieu of Tax (PILOT) agreement for six senior living residences in Jamestown, Falconer and the town of Ellicott. Housing Preservation is a based in Memphis, Tenn., and owns properties across the country.
The request for a 29-year PILOT was approved by the board.
Carol Rassmusen, business development manager, said the project includes six properties with four located in Jamestown, one in the town of Ellicott and one in Falconer with a total of 200 units. The properties are currently tax exempt, but an arrangement was previously made where Lutheran, the owners, paid a voluntary payment of about $15,000 annually to the city of Jamestown. Rassmusen said the properties would also be renovated.
Under the ownership of Housing Preservation, that payment would double for the city of Jamestown, and payments would also be made to the village of Falconer and the town of Ellicott.
In the 29 years they will up their payments 2 percent for the first ten years; for 11 percent for the next seven years and then for the next 12 years, 2 percent or whatever the CPI index if it is lower.
“They’re preserving high-quality senior living,” Rassumussen said.
Carmichael said the people he preserving housing for are like “you and me.” He said they worked into their 50s and 60s, paying into the Social Security system and believe in the system. While seniors do receive social security benefits, he said on average, social security checks equate to $1,290 a month for average Americans.
“Without the housing, they wouldn’t be able to live in an apartment,” Carmichael said.
Lutheran has decided to refocus their efforts, Carmichael said, which led to Housing Preservation starting the buying process. He said what he would like to do is “be a good neighbor,” and continue to pay the city of Jamestown a payment, and begin paying the other municipalities as well.
In other news, the IDA board approved a PILOT request for 320 Roberts Road Freezer, LLC with a deviation. Fieldbrook Foods is in need of more storage, and the Crow Group, who will be developing the facility, will lease the freezer storage space to Fieldbrook.
The parcel will be redeveloped into a 80,000-square-foot storage warehouse that could be expanded later.