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Council hears Fort Monroe PILOT is frozen; long-term leases may deliver full real-estate-equivalent taxes
Summary
City Manager Bunting said Fort Monroe's PILOT has been frozen at just under $1 million by a state budget amendment, but recent changes provide that when 50‑year long-term leases are executed the city will receive full equivalent real-estate tax revenue for those leaseholds.
City Manager Bunting explained the city's relationship with the Fort Monroe Authority (FMA) and the structure of payments the city receives. He said the pilot payment was originally conceived to grow with activity but was later frozen in a state budget amendment at just under $1 million. "The pilot, or payment in lieu of taxes, was designed to initially to give the city of Hampton the state made a decision to maintain the ownership of the land... what happened... a budget amendment was written into the adopted budget, freezing the pilot payment at a set amount. It's just under 1000000 dollars," Bunting said.
Bunting added that a subsequent modification provides that when long-term leases (50 years or more) are entered into by the authority, the city will receive the full equivalent of real-estate taxes for those leasehold interests. Council members noted redevelopment plans at Fort Monroe include long-term leases that could trigger that revenue treatment in the future.
