Lutheran Social Services has joined the ranks of several of Jamestown's other low-income and subsidized housing developments which pay tax equivalent payments.
Mayor Sam Teresi introduced a resolution during a recent City Council work session, which authorizes him to enter into a tax equivalency payment agreement with LSS.
"We have been working with Lutheran Social Services for several months," Teresi said. "We had discussions first, and then negotiations with them to craft a tax-equivalency payment on their four senior citizen apartment complexes located in the city of Jamestown."
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The four properties are located at 145 Chandler St., 830 N. Main St., 8 Crane St. and 9 Crane St. According to a letter from the Law Offices of Price, Flowers, Malin and Westerberg to Tom Holt, president and CEO of LSS, the owners of the four properties will seek HUD approval to increase the rent over time.
These increases will be to pay the city the equivalent of what the city tax would be on each of the properties. The letter also states that it will take several years to increase the rents to sufficiently pay the city the full city tax.
According to an outline of PILOT payments to the city of Jamestown, the earliest full payment of taxes will be in 2014. By 2019, all four establishments will be making PILOT payments in full.
"In the next several years, all four of the buildings will be up to the full tax equivalency payments," Teresi said. "Now, LSS joins the ranks of virtually every other subsidized housing provider. This is something that is important. Now, we have virtually every other subsidized housing provider making voluntary payments in lieu of taxes."
Teresi noted that other subsidized housing providers making PILOT payments include CODE Inc., Crestline Villa, Jamestown Housing Authority and several others.
"It's nice to see an organization like LSS, that doesn't have to, recognize the value of their contributions and services as an organization and for their residents," Teresi said.