A tax-abatement agreement has been reached ahead of a spring groundbreaking for the new IEC Electronics site at Silver Hill Technology Park.
The $19.1 million project is expected to eventually create 362 jobs, as company operations transition to the new facility on Route 88.
The tax-abatement is a payment-in-lieu-of-taxes agreement that involves four taxing entities — the village of Newark, the town of Arcadia, the Newark Central School District and Wayne County — and the property owner, Silver Hill LV LLC, a Capstone Real Estate Development company. Newark-based IEC is actually leasing the 150,000-square-foot space from Silver Hill.
The 35-acre property where IEC will relocate was purchased by Capstone from Wayne Economic Development Corp. The WEDC owns land at Silver Hill Technology Park, said Brian Pincelli, Wayne County’s director of economic development.
The 10-year PILOT agreement for IEC is “pretty standard,” Pincelli noted. The agreement calls for a 100 percent tax abatement on property improvements in the first five years, 2021-25. Those improvements are defined as the IEC facility and grounds, Pincelli explained.
In years 6-10, the tax abatement drops from 50 percent of the property improvements in 2026 until the property is at full value at the end of year 10, or 2030.
Under the PILOT, Silver Hill will pay taxes on a land value of $450,000 over the course of 10 years.
“You always pay taxes on the land, no matter what,” Pincelli said.
However, as a new build, it’s unclear how much the four taxing entities will receive in years 6-10 because the building has not been constructed yet. That’s the job of Larry Quinn, Arcadia’s assessor who also provides assessments for village properties.
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