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Gardiner council directs staff to draft resale/PILOT language for Libby Hill lots after developers cite permitting delays
Summary
Councilors asked staff to draft and negotiate language allowing a reset of the 24‑month build requirement for certain resales in the Libby Hill Business Park while protecting the city's PILOT revenue; staff will return with a proposal for Lot 18 in the near term.
The Gardiner City Council on Feb. 12 discussed whether to restart or extend the 24-month pilot (payment-in-lieu-of-taxes) buildout timeline when undeveloped lots in the Libby Hill Business Park are resold. Councilors heard from the city’s commercial broker and developers that permitting delays and rising construction costs have made some buyers unable to complete builds within the original 24 months.
Dennis Wheelock, the city’s broker, recommended allowing a new buyer to receive a fresh 24-month period to build while preserving the city’s financial protections. "The option we were recommending is ... you would give them the same 24 months of not having to pay that increased pilot right from the get go," Wheelock said, but he and councilors discussed safeguards for the city.
Councilors emphasized two principles: (1) the city should be made whole for any missed PILOT obligations by previous owners before a sale completes; and (2) new buyers should not be required to cover prior owners’ unpaid obligations beyond what the selling owner must settle at closing.
Councilor Rusty Greenleaf said the city must collect unpaid pilot fees from sellers who signed earlier agreements but failed to build. "The previous owner ... they need to be held liable for the pilot fee," Greenleaf said. Finance Director Denise Brown confirmed outstanding obligations must be resolved at closing to allow a clean transfer.
The council did not adopt a blanket policy at the meeting. Instead staff were directed to draft specific language for the current Lot 18 purchase-and-sale transaction and to work with the city solicitor and the buyer. That language is expected to make the sale contingent on the seller resolving owed fees and set a new 24-month clock for the incoming buyer, with a prorated tax obligation if the buyer resells before completing construction.
Why it matters: Libby Hill is one of Gardiner’s key business parks; the council wants to encourage development while preventing long‑term speculation and ensuring the city receives agreed PILOT revenue when owners fail to build.
Next steps: City staff and the broker will prepare purchase-and-sale language and present it to the council for approval before the scheduled closing; staff said the next council meeting would be available for formal action if needed.
