Pittsfield Council OKs TIF Extension for Proposed Holiday Inn Express

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass. — The planned Holiday Inn Express at 1055 South St. is staged to open in May 2023, after some pandemic delays.

On Tuesday, the City Council voted to amend the hotel's six-year tax increment financing agreement that was approved in May of 2020 to an eight-year TIF.

The new agreement will span from fiscal 2021 to fiscal 2028 and will forgive about $755,000 in real estate taxes while generating over $1.27 million in tax revenue.

"As you know, May 2020 is right when COVID hit and for the past two years the hospitality industry took a major hit and the banks were not financing new hotel projects, so for the past two years, there's been no construction or investment in that property," the city's Business Development Manager Michael Coakley said.  

"But [principals Mauer and Dilip Desai] would like to start building the project later in the spring of this year so they've asked us for a two-year extension of the six-year TIF to bring it to an eight-year TIF, nothing changes except for the extension."

The Desai's have requested a two-year extension due to delays in construction that were a result of the economic effects of the COVID-19 pandemic. The 77-room Holiday Inn Express is expected to create 25 to 30 jobs, 15 of them being full-time.

Originally, the build was estimated at $10 million and is now coming in at closer to $12 million. During the meeting, Mauer Desai confirmed that they have secured financing.

Councilor at Large Karen Kalinowsky supports the TIF agreement but said she finds an issue in giving businesses tax breaks while residents' taxes have increased.  

For FY22, average homeowners will see taxes increase by about $200, or a 5 percent increase, because of rising property values. Earlier this month, the council established a 10 percent increase in water rates and a 12 percent increase in sewer rates.


"I think business in Pittsfield is really important, I support this, I just have to add that we're giving businesses tax breaks and we're taxing our residents," she said.

She said she looked up the Desais' limited liability company for the project, Somnath LLC, and found it was dissolved in 2019.

Desai said this is news to him and confirmed that tax returns are filed on it yearly. He later explained that the family has other entities in Pittsfield, as they operate the Best Western Plus at 1350 West Housatonic St.

Ward 5 Councilor Patrick Kavey said even with the TIF, more taxes will be generated with a building on the land than without.

For FY22, the property's taxes were just over $15,000 a year.

"I'm fully supportive of this because even with the TIF, we're going to be generating more tax revenue than we are currently," Kavey said.

"And I drive by your property every day and was concerned thinking that you might not be building a hotel and that there might not be new jobs so I'm happy to hear that you're back and look forward to seeing you building a hotel and be very successful."

Some date amendments needed to be made to the amended order that was submitted to the council by Mayor Linda Tyer and because Tyer was not present at the meeting, President Peter Marchetti clarified that the vote will be contingent on there being a new, signed order with the corrected dates the next day.


Tags: motels, hotels,   tax incentive,   

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Lanesborough Property Tax Rate Up 5%

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — The Select Board on Monday approved a single tax rate that will increase the average homeowner's property bill by at least $670.

With a rate of $18.20 per $1,000 valuation, the average single-family home valued at $373,784 will see a $668 increase, and the average commercial property, estimated at a value of $577,990, will increase by $1,125 per year. This rate is 91 cents higher than last year's $17.29 per $1,000 valuation.

"Historically, as part of their annual budget policy, the Select Board and Finance Committee has endorsed a single tax rate option, providing no exemption or discount to a particular property class or group, voting a residential factor of one, which is what we'll do tonight, affirms a single tax rate and proportionate sharing of the tax levy burden between all classes of property," Principal Assessor Ross Vivori explained during the joint meeting with the Finance Committee and Board of Assessors. 

This year's levy is $11,760,845, which is a 11.28 percent increase from last year, or $1,192,521.

The town's total taxable value is $648,200,324; about $541 million in residential, almost $9 million in industrial, about $52 million in commercial, and about $44 million in personal property. It is 5.7 percent higher than the previous year.

For fiscal 2027 the max allowable levy is $12,313,803, the town is levying $11,760,845, leaving an excess levy capacity of $552,957. There was more than $6.5 million in new growth, which was described as contributing about $112,855 in tax revenue at the prior year's rate.

Finance Committee member Al Terranova suggested that the rate may change if revenues, such as from the state, changed. 
 
"I just don't want people to look at this and, 'Oh my goodness, I'm going to pay $600 more a year,'" he said. "They would  just pick out that one number, because you don't know what the actual number is."
 
Select Board Chair Deborah Maynard said all the figures are based on the tax recapitulation sheet, which includes estimated revenues and state cherry sheet numbers. 
 
"But there's no way around that, that's the number we're paying," added Select Board member Jason A. Breault. "That's the tax rate."
 
Ross said property values are rising because people are paying more for homes, but that's not driving the tax rate — town spending is.
 
"If the [property] value goes up and nothing else changes, the tax rate stays the same," he said. "What's driving the tax rate up is the budget ... everything's gone up and you've got raise the money to operate the town. It is what it is." 

In better news, the board accepted what Accountant Angela Garrity agreed was a "healthy" amount of free cash at $949,833. 

The board also heard from the public about putting a moratorium on data centers and battery storage facilities at its next meeting as well as Old State Road residents asking about the speed bump removed at the intersection of Target and Old State Road.

The residents said two years ago they had asked for the speed bump and were wondering why they were not warned it was being removed. 

The three people said they were afraid to cross the street for their mailbox or walk their dogs. They also said it is very hard for them to leave their driveway at the intersection. 

The Select Board could not respond during public comment, but at its last meeting, it decided to remove the speed bump based on information from police that it was "useless" as a deterrent and from Emergency Medical Services Director Jen Weber that it was dangerous when transporting patients.

An ad hoc committee with Weber and Police Chief Robert Derksen and board members Breault and Jeff Walters to discuss the best options on reduce speeding in some areas. Maynard reminded people that community members wanting to serve are being asked to submit citizens' interest form with the town.

Lastly, Alison Dixon from Berkshire Regional Planning Commission and Berkshire Environmental Action Team's Executive Director Brittany Ebeling presented two Municipal Vulnerability Preparedness action grant projects. 

One project is the road stream crossing prioritization and assessment program for town-owned bridges and culverts to prioritize crossing replacements. Dixon explained that undersized culverts were identified as a vulnerability in the town's MVP and hazard and mitigation plan. The project is expected to span two years and will notify nearby landowners before field crews work around culverts and bridges. Community members were also invited to share knowledge about crossings they believe have been problematic.

The second project will cover ghost dams. BEAT and BRPC will be working with watershed organizations and a youth team from Greenagers over the next two years locating and documenting unmapped, human-made dams, also called ghost dams, which may pose flood risks. The goal is to create a Berkshires-wide map and connect towns and landowners with information and resources for flood-resilience planning.

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