Resident urges Jamestown to reopen PILOT terms as investor presses for 0% escalator
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Summary
At Jamestown—s Feb. 23 council session a resident questioned a negotiated PILOT payment for a proposed $77 million, 10‑unit project, urging an escalator clause; an investor representative said lenders require the current 0% increase term to close financing.
A resident who identified their address as 225 Bowen Street told the Jamestown City Council on Feb. 23 that the negotiated payment under a proposed PILOT (payment in lieu of taxes) for a planned $77,000,000, 10‑unit construction project undervalues the city—s future revenue because it lacks an inflationary escalator.
The resident, speaking during the public comment period, said the negotiated tax payment is currently "0.00099" (described in the remarks as "nine tenths of one percent") and illustrated how a fixed dollar payment over a 15‑year term will lose purchasing power if inflation pushes costs up. "There's nothing in there for an inflationary factor associated with the value of the taxes," the speaker said, and asked the council to table the PILOT to examine whether an escalator clause could be introduced.
An unidentified speaker who identified themselves as representing an investor said a new investor is ready to move the project forward but that lenders and the state funding agency expect a pilot agreement with no annual increase in the payment to close financing. The investor representative said the project projections assume income will increase 2% annually while expenses rise about 3%, and argued a 0% PILOT helps demonstrate long‑term viability to investors who want to see positive cash flow projections for 30 years.
The exchange framed the central trade‑off the council must weigh: protecting future municipal revenue with an escalator clause versus preserving financing terms investors require to complete construction. The resident noted the city ranks among the most heavily taxed municipalities in the state, saying, "according to the New York State Comptroller's Office, the city of Jamestown is the third highest taxed city in the state of New York," and argued that a perpetual fixed payment could reduce future revenue needed for capital expenses.
The council did not render a formal decision on the PILOT during the public comment segments captured in the transcript. A motion to table the matter before discussion was raised later in the meeting (see other items).
