When our city leaders claim there is a budget deficit what they really are saying is that we do not have enough money. Yet this situation is a creation of a tax and assessment system which gives large projects huge benefits which home owners do not enjoy. Most of these projects get special tax rates from the city either through COMIDA or Payment in Lieu of Tax arrangements (PILOT). Yet this is only the tip of the iceberg for these projects as they are also under assessed.
The chart below lists 19 such projects in Rochester. These projects have been assessed at $43.7302 million, but those we have full details on were built for $361.8 million. If assessed at construction costs these would generate $15.9 million in revenue compared to the $1.9 million the City collected with the present assessments. Many of these developers pay even less! Even if we accept the special tax agreements, the low assessment of these properties will keep their taxes low even after these deals expire. Thus, there are hundreds of projects which the owners are paying taxes on only a portion of the property value. If Rochester only taxed and assessed all properties fairly there would be roughly $90 million more without having to raise the tax rate at all.
| Project | Address | Cost To Build | City Contribution | Assessed Value |
| 250 South Ave | 250 South Ave | $2.1 mil | $450,000 | $400,000 |
| Alexander Park | 330 Monroe Ave | $83 mil | ??? | $7.445 mil |
| Westfalls Heights | 454 Westfall Rd | $11 mil | PILOT | $4.1 mil |
| Fernwood Village | 65 Waring Rd | $9.4 mil | PILOT | $3.975 mil |
| North Plymouth Terrace | 116 W. Main St. | $5.5 mil | ??? | $67,200 |
| Ramona Park | 5, 10, 20 Ramona Pk | $18.574 mil | PILOT | $3.58 mil |
| Parazin Building | 206-208 Mill St | $1.5 mil | $530,000 | $1.08 mil |
| Rite Aid | 565 Monroe Ave | ??? | ??? | $1.525 mil |
| Culver Road Armory | 145 Culver Road | $14.4 mil | PILOT | $2.1 mil |
| Voters Block Community | 556-560 W. Main St | $20.3 mil | $1.4 mil + PILOT | $15,000 |
| Frederick Douglass Apts | 442-466 W. Main St | $7 mil | $1.7 mil + PILOT | $44,000 |
| Depaul on W. Main | 720 W. Main St | $35 mil | PILOT | $225,000 |
| Corn Hill Landing | 300 Exchange St | $22 mil | $19.2 mil | $7.65 mil |
| Trolley Barn | 61 Commercial St | $5.6 mil | $1.05 mil | $1.2 mil |
| Parry Building | 222-230 Mill St | $2.18 mil | $710,000 | $925,000 |
| Kirstein Building | 234-250 Andrews | $4.1 mil | $1 mil | $1.85 mil |
| ESL Building | 255 Chestnut St | $50 mil | $384k + PILOT | $624,000 |
| Bridge Square Building | 242 W. Main St | $6.746 mil | ??? | $325,000 |
| Brooks Landing Hotel | 1000 Genesee St | $13 mil | $3.1 mil | $6.6 mil |
(All figures are from the City of Rochester's Website)
Now the argument for most of these properties to get tax breaks is that they create jobs. Yet, most of these properties with special tax considerations are either commercial buildings or low income housing. These projects do not create permanent jobs. The project owners are developers who then rent the spaces and apartments. Companies that rent the commercial spaces may create permanent jobs but they do not pay a lower rent. So the owners just end up with higher profits.
Recently the State of New York limited tax assessment growth in an area to 2%. This would prevent us from fairly taxing these properties but there is a loophole. If 2/3rd of City Council were to vote to remove this cap then it can be lifted. Thus the City could fix the inequities of the tax system and raise the needed revenue for us to run our city.
We should:
- Reassess all the large projects in the City at a rate that is closer to construction costs. If projects in the city would only be assessed at half their construction value, this would raise over $40 million.
- Stop using PILOT programs on projects that only create buildings rather than permanent jobs.
Other ways to save $33.6 million:
- Defer part of the Ramona Street project to next year to save $1.75 million
- Put sidewalk replacement in line with other years to save $700,000
- Put 2 police officers in half the police cars on the streets to save $800,000
- Defer Erie Harbor Enhancements to save $800,000
- Defer new convention center equipment to save $200,000
- Halt land acquisition for a year to save $1 million
- Do not do the Transient Marina Facilities Phase 1 Project to save $7.3 million
- Delay green garbage can (called toters) replacement to save $1.2 million
- Use request for proposals procedures on all purchases to save $6.9 million
- Defer half of midtown redevelopment to save $1.95 million
- Remove blue light security cameras (that creates more shootings) to save $1 million
- Reduce street milling to half of the present rate to save $2 million
- Make management to worker ratio in city 1:10 to save at least $8 million
