Frequently Asked Questions
What is an IDA?
New York State established Industrial Development Agencies (IDAs) in 1969. The City of Poughkeepsie Industrial Development Agency is a public benefit corporation of the State of New York, which was created pursuant to Article 18-A, Title 2 Municipal Law of the State of New York.
What is the purpose of an IDA?
The IDA was established under New York State law to assist economic development projects that create or otherwise foster employment and improve the municipal tax base. This assistance is provided in the form of one or more tax exemptions or abatements to promote, develop and assist in acquiring constructing, equipping and furnishing of qualified projects and facilities.
What are the benefits an IDA provides to applicants?
An applicant’s project(s) may qualify for sales and use tax exemption, mortgage recording tax exemption, and/or real property tax abatement in the form of a Payment In Lieu of Taxes (PILOT).
Who can apply for IDA benefits?
A person or entity (an “applicant’) that intends to undertake a project may submit an application on the Agency’s uniform application form. The applicant need not own or lease the property on which the project is to be located at the time of the making of an application but must own or lease such property at or prior to the time any such financial assistance is actually provided. The project for which financial assistance may be sought must comply with the requirements applicable to industrial development agencies under New York State law. The applicant must be able to demonstrate to the Agency’s satisfaction either that the project is not likely to be undertaken without the requested financial assistance (the so-called “but for” test) or, alternatively, explain in writing why financial assistance should nevertheless be provided by the Agency. The grant, denial and/or conditioning of any financial assistance by the Agency is entirely within its discretion. The types of applicants and projects disqualified for receiving IDA tax exemptions can be found in the Agency’s Uniform Tax Exemption Policy (UTEP) under the “Application Materials” section of IDA’s webpage on the City of Poughkeepsie Website
What is the cost of IDA involvement?
- Application fee of $500
- Cost benefit analysis fee of between $1000 and $3000
- At the time of contract execution, a fee of 1% of first $2.5 million of estimated project cost and ¼% of the estimated project cost over $2.5 million
- Annual fee 0.1% of maximum total project costs
What is the process to apply for IDA benefits?
- Review the IDA’s Uniform Tax Exemption Policy (UTEP) under the section labeled “Application Materials” on the City of Poughkeepsie website.
- Obtain uniform IDA application from the IDA webpage under the section labeled “Application Materials” on the City of Poughkeepsie website.
- Complete application and provide all information requested and all supporting documentation.
- Direct questions regarding application material and process to the IDA Chairperson.“
- Applicant formally submits application in electronic form online and in hard copy paper form to the IDA Chairperson together with the IDA application fee.
- Once completed application is submitted, the IDA Board will review the application for completeness, accuracy, consistency of information and may contact the applicant with questions or requests for corrections or additional information.
- After a satisfactory set of application information and material is provided, the IDA will conduct a thorough project analysis, including a cost-benefit analysis conducted, at the applicant’s expense, by a third-party firm selected by the IDA.
- Thereafter, the IDA will hold a public hearing for the applicant to describe the applicant’s project and its expected benefits to the municipality and for the public to provide comment on the project.
- Then, based on the project analysis, the IDA will determine the eligibility of the project to receive tax exemption or abatement benefits and, if eligible, in what amount, based on pre-determined tax exemption schedules plus any additional factors the IDA deems relevant to assessing the project.
- The Chairperson will schedule a meeting with the applicant to review the IDA’s findings and the intended recommendation to the full board.
- Whether the IDA decides to grant benefits to the applicant or not, a resolution declaring the approval or denial of the project to receive benefits, the amount and timing of benefits, and any other stipulations or conditions will be taken to vote by the full IDA Board.
- If benefits are granted, the applicant’s legal counsel with work directly with the IDA’s legal counsel to finalize a formal contract to be entered into prior to or in connection with a formal closing.
How are Board members selected?
The City of Poughkeepsie Board members are appointed by the City Common Council.