JOINT RELEASE FROM SCHENECTADY COUNTY, TOWN OF ROTTERDAM,
AND SCHALMONT CENTRAL SCHOOL DISTRICT
(Schenectady County, NY) – June 20, 2012 – The Rotterdam Town Board, Schenectady County Legislature and the Schalmont Central School District Board of Education will all vote today on a four party agreement that settles pending tax litigation and sets in place a ten year agreement on local property taxes through the Schenectady County IDA.
“This agreement eliminates costly litigation and sets the stage for a new partnership between Rotterdam and GE,” said Rotterdam Town Supervisor Harry Buffardi. “I want to thank the County, the School District and GE for sitting down and getting this agreement worked out. We are proud to be able to solidify this long-term positive relationship with our largest employer, which was not able to be accomplished by previous Town Administrations.”
“We believe in paying our fair share of taxes and are very pleased to have come to a mutually satisfactory agreement with the Town, School District and County that will provide long term stability for all parties involved,” said GE spokesperson Chris Horne. “We need to be able to compete globally while supporting our local communities and we appreciate the opportunity to be able to work out an equitable solution that accomplished both.”
“This is a great day for Rotterdam and Schenectady County, “said Judy Dagostino, Chairwoman of the Schenectady County Legislature. “Schenectady County, with our unified economic development team, has worked hard to improve our relationship with GE. This agreement helps to solidify that relationship which has helped attract over $200 million in new GE investment to Schenectady County since 2004. I want to thank Legislator Tony Jasenski, Supervisor Buffardi, the Town Board and the School District for their outstanding cooperation as we forged this agreement. I also want to thank GE for putting in place an agreement that shows the company’s outstanding support and commitment to our community.”
“Last year, we promised the people of Rotterdam that we would work as a team to settle this litigation,” said County Legislator Anthony Jasenski. “Today we announce an agreement that saves Rotterdam hundreds of thousands of dollars in legal fees in the short run and guarantees almost $50 million in revenue for the term of the agreement. This is truly an agreement that Rotterdam and Schenectady County can be proud of.”
“I am so proud of our team for getting an agreement that provides a solid foundation for us to build on and opens a new era of cooperation between GE and Rotterdam,” said Deputy Town Supervisor Wayne Calder.
“This agreement lays the foundation for our district to continue to provide an excellent education to our students,” said Schalmont School Superintendent Dr. Valerie Kelsey. “GE is making a major commitment and we thank them. We also thank the County for helping both the Town and School District put together this agreement.”
Under the agreement signed today, the Town of Rotterdam will set the assessment on GE facilities in the Town at $132 million – a reduction from the current number of $138 million, but an increase from the court decision in 2007 of $129 million.
In addition, the parties agreed to settle the pending litigation at a value of $132 million for tax years 2007 through 2011. GE also agreed to waive interest payments on tax refunds due to the company and to allow for payments to be paid in ten equal installments with no interest over the term of a payment in lieu of tax (PILOT) agreement.
The Schenectady County IDA will put in place a PILOT agreement that will set future tax payments for a ten year period starting in 2013. For the first five years of the new agreement, GE will pay a lump sum tax payment of $4.8 million, the equivalent of an assessment of $141 million. For the next five years, the lump sum payment will equal $5 million, the equivalent of a $146 million assessment.