Submitted by Howard B. Owens on March 6, 2014 - 9:30am
It's going to take a good deal more electricity to power an expanded Liberty Pumps in Bergen and adding more transmission lines to Appletree Acres will cost a bit of money.
To help pay for it, Genesee County Economic Development Center is proposing a financing scheme known as a PIF -- PILOT Increment Financing.
Liberty Pumps already has an approved PILOT (Payment in Lieu of Taxes) for its expansion, and a PIF reallocates some of their PILOT payments toward infrastructure payments.
In this case, GCEDC is proposing a 50-percent PIF, meaning the taxing jurisdiction will get half of the PILOT payments and half will go toward a fund to pay for the additional power lines and poles.
The cost of the electricity project is estimated at $150,000.
The power expansion will benefit all of Appletree Acres, making it more attractive to potential businesses considering the park and Village of Bergen residents, said Mark Masse, VP of business development for GCEDC.
It will also mean ratepayers in the Village of Bergen -- which has its own power utility -- won't see a rate increase as a result of infrastructure upgrade.
Of the 10-year period of the PILOT/PIF, the county will receive nearly $80,000 in PILOT payments and $80,000 will go to the electricity project. For the county, the gain/loss of $80,000 is not currently either a budgeted expense or budgeted revenue.
For the Village of Bergen the split is $17,600, and for the Byron-Bergen School District, it's $287,850.
All three jurisdictions will need approve the PIF.
Masse will explain the project to the Byron-Bergen School Board tonight.
A PILOT is a mechanism to relieve a new or expanding business of some property tax burden on projects expected to create new jobs. The property is either owned or leased by the nonprofit GCEDC so there are no property taxes owed; the business then makes payments in lieu of those taxes during the PILOT period. The payments increase on a graduated scale over a 10-year period, usually started at 20 percent of the increase in assessed value.
A PIF, then, takes those payments and allocates at least a portion to a specific community project.
The County's Ways and Means Committee learned about the PIF plan for Appletree Acres on Wednesday, but was not yet asked to vote on the project.
Liberty Pumps is planning to add 100,000 square feet of manufacturing and office space.