COLUMBUS – While Columbus town residents are proud the number one Greek-style yogurt producer in the Northeast has chosen to call their rural community home, they don’t see a need to give the company additional tax breaks to fuel their expansion.
That was the message Columbus Interim Supervisor Bruce Vermeulen relayed to the Chenango County Industrial Development Agency, during a public hearing held Tuesday night at the Columbus Town Hall.
The meeting was held to gather feedback regarding Agro Farma’s request for a Payment in Lieu of Taxes (PILOT) agreement to abate property taxes on the 150,000 square foot, $22 million refrigerated warehouse they are currently constructing. The company is also seeking sales and mortgage recording tax exemptions for a second project, designed to expand production at their existing facility.
The bottom line, according to Vermeulen, is that Agro Farma – the makers of the wildly popular Chobani-brand Greek-style yogurt – doesn’t need the concessions.
“The construction they are doing certainly appears that it would be done regardless of whether this is given to them,” the town official said, reading from a prepared statement. “Why are the citizens of Columbus, all county residents and Unadilla Valley school taxpayers subsidizing this project?”
Vermeulen brought up other community concerns as well, including road congestion and air and water quality issues. He also took issue with the fact that Agro Farma identifies itself as being located in New Berlin or South Edmeston, rather than Columbus.
“(It’s) interesting they don’t mention Columbus, but now want a tax break from the citizens of Columbus,” he said.
Columbus Town Councilman Kavin Winton said he was “disheartened” by the fact that neither the agency or company had reached out to town leaders to discuss the scope of the agreement, or its potential ramifications for the municipality.
“I have a severe issue with that,” he said.
“I think the IDA and Agro Farma has approached this wrong and it is being forced down our throats,” agreed Vermeulen.
Other community members weighed in on the matter as well, some registering their objections to the tax concessions and others speaking in support of the company.
According to the latest estimates provided by the CCIDA, the town, county and school district will all receive more in taxes on the parcels in question than they were prior to Agro Farma’s purchase and development of the site. This is true even in the first year of the 10 year agreement, when the company would receive a 95 percent exemption on its tax liability. That exemption would decrease by 5 percent each year, with payments increasing proportionally to each taxing authority.
According to CCIDA Executive Director Maureen Carpenter, the agency used information from the town assessor and the Chenango County Real Property Tax Department to develop the schedule, which is based on an estimated assessed value of $7.4 million. According to the schedule, Agro Farma would pay $12,491 in lieu of taxes in year one, as opposed to the $249,817 they would otherwise be assessed in taxes. By the final year of the agreement, the company would pay $237,326.
The CCIDA reported that, pre-development, taxes on the parcels in question were $8,839. Of that, the town’s share was $2,182.
Under the PILOT agreement, the Town of Columbus would receive $3,512 in year 1, $10,535 in year 2, $17,559 in year 3 and continue increasing incrementally, topping out at $66,724 in year 10.
The total benefit to Agro Farma would be a savings of $1,249,086 over the life of the agreement. The sales tax and mortgage recording tax exemptions the company is seeking could yield them another $1,421,000 in savings, for a total projected benefit of $2,670,086.
Agro Farma’s chief operating officer, Keven Bucklin, was in attendance for the public hearing, although he did not directly address the proceeding.
“Agro Farma is a proud member of the town of Columbus. We currently employ more than 300 people and expect that number to increase by another 100 once our expansion project is completed,” Bucklin said following the meeting. “More than ever, we’re committed to growing in ways that will positively impact our local community.”
Ultimately, the final decision regarding the proposed PILOT agreement, as well as the sales and mortgage recording tax exemptions requested by Agro Farma will be made by the CCIDA.
According to Carpenter, the agency has the authority to make this decision unilaterally under general municipal law. Once a PILOT agreement is signed, the deed for the property in question is transferred to the CCIDA, which technically makes it tax-exempt.
“If the town elects not to sign the agreement, they will get no payment in lieu of taxes,” Carpenter explained.
The CCIDA will address the matter at its next meeting, scheduled for 8 a.m. on Wednesday, Nov. 17 in the Commerce Chenango offices, 19 Eaton Ave. The meeting is open to the public.