Reform PILOT Agreements in Schenectady
Why This Matters
PILOTs Payments In Lieu Of Taxes were created as temporary tools to encourage development. Over time many have turned into permanent tax breaks that shift the tax burden onto homeowners renters and small businesses.
When large developers and institutions avoid full taxation everyday residents are left paying more. That is not economic development. It is cost shifting.
Schenectady needs PILOT reform that puts the public first.
The Policy End Permanent Tax Breaks
This policy ensures every PILOT is temporary measurable and accountable.
All PILOT agreements must
Be time limited with a clear end date
Deliver documented public benefits
Transition to full taxation
Undergo public review before approval or extension
No PILOT exists forever.
What PILOTs Must Deliver
Any project receiving tax relief must provide real value to the community including
Local job creation with fair wages
A meaningful increase to the tax base after expiration
Affordable or mixed income housing commitments
Infrastructure improvements paid for by the developer
Benefits that clearly serve Schenectady residents
Public investment requires public return.
Mandatory Expiration and Review
Every PILOT will include
A fixed expiration timeline
A mid term public performance review
A clear path to full tax responsibility
There will be no automatic renewals and no quiet extensions.
Transparency and Public Oversight
City Hall will
Publish a public list of all active PILOT agreements
Show how much tax revenue is being waived
Report what each project promised versus what it delivered
Require public hearings for approval or extension
If residents are subsidizing a project they deserve to know it.
Who Is Typically in PILOT Agreements
While agreements change over time PILOTs most often include
Large real estate developers
Corporate commercial properties
Hotels and entertainment venues
Luxury or market rate housing projects
Quasi public authorities and affiliated entities
Major institutional landholders
These agreements can involve millions in forgone tax revenue over many years.
Why Reform Is Necessary
PILOT systems often benefit politicians more than residents by allowing deals without long term accountability and shifting tax pressure quietly onto families.
Reform replaces insider advantage with clear rules and public benefit. PILOTs should be temporary tools not permanent entitlements.
This policy ensures development pays its fair share protects homeowners and renters and builds a stable tax base for the future.
That is how Schenectady starts Chenecting fairness accountability and real economic growth.