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Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

January 31, 2023

New Notification Requirements for Industrial Development Agencies

New York State Governor Kathy Hochul recently signed two new pieces of legislation that expand requirements for industrial development agencies (IDAs) with respect to notifying affected taxing jurisdictions of various matters.

Initial Resolutions and UTEP Deviations

Effective January 1, 2023, IDAs must deliver a copy of the initial resolution with respect to a project by certified mail, return receipt requested, to each affected local taxing jurisdiction. Delivery to each affected school district must go to both the school board and district superintendent. This initial resolution may be one that authorizes a public hearing, a deviation process with respect to the IDA’s uniform tax exemption policy or both, or may be a preliminary inducement resolution. For projects where an IDA only adopts a final approving or authorizing resolution, that resolution must be delivered in accordance with the new requirements.

Effective January 1, 2023, the required notification by an IDA to affected local taxing jurisdictions of a proposed deviation from the IDA’s uniform tax exemption policy must now be sent by certified mail, return receipt requested (note: the delivery method had not previously been specified). Additionally, notifications to an affected school district must go to both the school board and district superintendent.

The governor’s approval memorandum notes that these notifications are intended to ensure coordination and transparency between IDAs and their communities.

PILOT Expiration

Effective February 14, 2023, IDAs must notify affected taxing jurisdictions two years before a payment in lieu of tax (PILOT) agreement expires and immediately upon early termination of a PILOT agreement. This notice is intended to provide taxing jurisdictions time to make budget plans for when a PILOT agreement ends. Currently, affected taxing jurisdictions receive a copy of a PILOT agreement shortly after closing.

Conclusion

IDAs should update their policies and procedures to comply with these new requirements. Affected local taxing jurisdictions should be aware of the additional notifications and form of notification that they will be receiving from IDAs.

If you have any questions regarding the content of this alert, please contact Melissa Bennett, Public Finance Practice Area co-chair, at mbennett@barclaydamon.com; Leila Dwyer, associate, at ldwyer@barclaydamon.com; or another member of the firm’s Public Finance Practice Area.
 

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