A.871 (Destito)
S.1483 (Skelos)

Summary
This bill would waive property tax payments for developers who pay for the initial construction of desired infrastructure improvements and then saddle neighboring businesses and residents with the costs of maintaining and operating the expanded infrastructure.

Explanation
When big economic development projects are proposed major infrastructure improvements (e.g. roads, sewer lines, etc.) are often necessary. Paying for the construction and maintenance of these improvements can be costly for the residents of the host community.

This bill would authorize municipalities to give developers a 100 percent credit on their property taxes to reimburse them for the initial construction costs and the interest associated with these infrastructure improvements, up to the value of the improvements.  Essentially, the developer would get the infrastructure for free and the residents and businesses in the community would get stuck with the long-term costs of operating and maintaining that infrastructure.

This bill would be yet another driver for sprawling development in New York State.  New York is already developing land at a destructive pace.  According to a report done by the Brookings Institute, 100,000 acres of farms and forests in Central New York were turned into parking lots and strip malls between 1982 and 1997.  Over this same time period, the population of that region declined by 6,500 people.  The result was a lot of additional infrastructure in the form of roads, water pipes, etc., with fewer people to share the maintenance costs.

Developed land can put a higher property tax burden on communities in terms of increased infrastructure maintenance costs.  While providing incentives for economic development is important, local municipalities already have several options available to them in terms of designating Empire Zones, allowing PILOTs, and other mechanisms.  Waiving future property tax income and saddling community members with the increased maintenance costs is another example of how sprawl costs us all.

Environmental Advocates of New York opposes this bill.