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IDA approves amendment to Canon Development LLC pilot after early completion triggered large reassessment
Summary
The Town of Bethlehem IDA unanimously amended the Canon Development LLC pilot schedule after an early certificate of occupancy led the assessor to treat improvements as finished and a school tax bill rose sharply; board members said the change avoids penalizing earlier‑than‑expected completion and staff will notify taxing jurisdictions.
The Town of Bethlehem Industrial Development Agency unanimously authorized a resolution Nov. 26 to modify the pilot schedule for Canon Development LLC after the project finished earlier than planned and was reassessed.
Agency special counsel Chris Canada told the board the assessor revalued the property from about $289,000 in 2023 to roughly $2.475 million, and the applicant received a school tax bill that rose from $5,852 to $50,762. "They got a bill for 50,762, so that's — that's what triggered all this emotion," Canada said, summarizing the applicant's request for an amendment.
Canada and Executive Director Katherine Hedgman explained the reassessment followed issuance of a temporary certificate of occupancy that signaled the assessor the property was finished. Canada said the amendment effectively shifts the pilot schedule to start a year earlier so the project is not penalized for early completion. "We don't want to penalize them for finishing early," Canada said.
Board members asked for clarifications about retroactivity and whether the school district had been informed. Hedgman said the town was aware and that she would consult town controller Mike Cohen and assessor Lori to coordinate notification of taxing jurisdictions before finalization. "We're going to have to look at this and fix it because now we know what happened," Hedgman said.
The board discussed legal costs for the amendment and concluded those fees would be modest and not charged to the applicant. Members also emphasized clarifying IDA documents so future pilot agreements more clearly separate taxes on unimproved land (which remain payable) from abatement of taxes on improvements.
After discussion, the board moved and adopted the resolution authorizing the modification and amendment to the Canon Development LLC project pilot schedule. The motion passed unanimously. Staff and counsel said they will notify the affected taxing jurisdictions and adjust IDA documentation to reduce future ambiguity.
The IDA did not provide a resolution number in the transcript; the motion's maker and seconder were not named in the record provided.
