County Board Approves New Walmart PILOT Agreement Despite Reservations

By Chris English

SCHOHARIE COUNTY — When the dust cleared, it seemed like this was kind of a lesser-of-evils decision from the Schoharie County Board of Supervisors.

Accept a deal paying less than half of full property taxes, or risk the possible loss of hundreds of jobs. The BOS chose the former at its Friday, May 16 meeting and voted overwhelmingly to approve a new 10-year Payment in Lieu of Taxes (PILOT) agreement with Walmart for the company's huge distribution center in Sharon Springs. The new deal had already been green lighted by the other three entities that are part of it: the Village of Sharon Springs, Town of Sharon and the Sharon Springs Central School District.

Before the county vote, there was a lengthy discussion about whether the county might be getting a raw deal on PILOT agreements for the 217-acre, 1.42 million square-foot DC just off Route 20 that opened in 1994.

The new 10-year PILOT that will kick in soon increases the total annual payment split up among the four entities by 18 percent, from $975,000 to $1.15 million, said Schoharie County Industrial Development Agency Executive Director Jim Halios. He negotiated the new agreement with Walmart on behalf of the county, town, village and school district.

However, it was pointed out at the meeting that the $1.15 million is still less than half the $2.8 million Walmart would be paying in annual property taxes under the full assessment of the property. Under the new PILOT deal, the school district will get $552,000 a year over the next 10 years, the county and town $201,250 and the village $195,500.

"We now have a 30-year PILOT in place, and I believe that's unprecedented in the county and possibly in the state," Supervisor Ben Oevering of Schoharie said before the vote. "I'm very sensitive to the amount of jobs and that's something we need to maintain, but we also need to look at the big picture."

Walmart has 400 full-time employees at the Sharon Springs Distribution Center and 120 more seasonal employees, Halios pointed out.

"We represent county taxpayers, there has to be a middle ground," Oevering continued. "It seems like we're setting a precedent for other manufacturers to come in and get PILOTs for this long."

He and Supervisor Earlin Rosa both urged tabling the matter until more study could be done.

"I agree with Ben wholeheartedly," added Supervisor Donald Airey of Blenheim. "The numbers have to be better, we have to find a better compromise with Walmart."

Supervisor Harold Vroman of Summit noted that the tax breaks that come with PILOT agreements are meant to be temporary measures designed to get a company started and well established at a site, not a permanent arrangement.

"I get Ben's point, it's very valid," said Halios. "One of our main things to consider, however, was maintaining the jobs there, though I know there has to be a balance."

He pointed out that Walmart officials could decide to close the Sharon Springs center and open one in another county if pressed for more on PILOTs or told they had to start paying full property taxes.

Halios said he started talks with Walmart asking for a 50 percent increase in PILOT payments, and the company opening with 5 and 10 percent. He added that 18 percent was arrived at after much negotiation and that representatives from the four entities were updated and kept abreast of talks as they went along.

"That's a lot of employees to jeopardize," said BOS Chairman Bill Federice of considering a no vote on the new deal.

"I know the village depends on them a great deal," said Supervisor Sandra Manko of Sharon. "I've seen Walmart pick up and move to other states."

In the end, a vast majority of Supervisors saw more positive than negative in voting yes. Airey and Oevering were among only three Supervisors who voted against the new agreement.

In other actions from the May 16 meeting, Halios presented the county IDA's annual report and updated the BOS on the agency's various efforts on bringing new business to the county and other matters. He is leaving the IDA in early June to take a similar job closer to where he lives in the Schenectady area and said the IDA's Board of Directors will select a new executive director in the fairly-near future.