Economic development doesn’t happen by chance; it requires strategic tools that enable investment. One of the most effective tools The Agency uses to support transformative projects in Broome County is the Payment in Lieu of Taxes (PILOT) program.

What Is a PILOT?

A PILOT agreement allows developers and businesses to make reduced tax payments for a set period, rather than paying the full property tax rate immediately. This structure helps projects get off the ground by reducing upfront costs while ensuring that all taxing jurisdictions continue to receive revenue. Over time, payments increase until the property transitions back to the standard tax roll.

In short, PILOTs balance short-term affordability for developers and businesses with long-term benefits for the community.

Why PILOTs Matter

• Catalyst for Redevelopment: PILOTs make it financially viable to transform vacant or underutilized properties into productive spaces.
• Job Creation: By supporting new housing, commercial, and industrial projects, PILOTs generate construction jobs and permanent employment opportunities.
• Community Growth: These projects enhance quality of life by adding housing options and amenities that attract residents and businesses.
• Future Tax Base Expansion: Once the PILOT period ends, the property contributes fully to local taxes, strengthening municipal budgets.

Local Examples

Recent projects in Broome County highlight the impact of PILOT agreements:

• The Lane Group of NY, LLC on behalf of 1st Main Owner, LLC: A $20 million housing redevelopment of the former NYPENN building was made possible through a 20-year PILOT program.
• Riverside Gardens: A $15 million housing redevelopment of the former Davis College was made possible through a 20-year PILOT program.

These projects demonstrate how PILOTs turn ambitious ideas into reality, breathing new life into historic sites and underutilized properties.

The Agency’s Role

As Broome County’s lead economic development organization, The Agency carefully evaluates each PILOT application to ensure projects align with community priorities. By leveraging this tool, The Agency helps balance economic growth with fiscal responsibility, ensuring that development benefits both businesses and residents.

Bottom Line: PILOT programs are tax incentives that encourage investments in Broome County’s future. By reducing barriers to development today, they create jobs, housing, and opportunities that strengthen our community for decades to come.