The Town Council was presented with two different tax discount agreements during its Monday night meeting. Both agreements allowed for significant tax savings for two large properties One of those was in regards to the Baldwin Senior Living near Route 93 in the Woodmont Planned Unit Development. “The Baldwin is a nonprofit voluntary corporation formed under RSA 292, and it is recognized by the Internal Revenue Service as a charitable organization described under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Tax Code”), and exempt from federal income tax,” Town Manager Shaun Mulholland wrote in a memo. “The Baldwin owns, and operates on a nonprofit basis, a lifecare community for senior residents located at Woodmont Commons. In accordance with RSA 72: 23-c and RSA 72: 23-k, the Baldwin filed with the Town in a timely manner seeking an exemption from the real estate property tax for most of the Community property for the tax year beginning April 1, 2025. The Town Council approved the application and granted the property tax exemption for the property. In accordance with RSA 72: 23-k and New Hampshire RSA 72: 23-n, the Baldwin has agreed to make, and the Town has agreed to accept, a voluntary payment in lieu of taxes.” It was explained by Mulholland that the PILOT (Payment In Lieu of Taxes) payment would be for $410,000 for 2025. “The agreement is for a 10-year period. The base amount of $410,000 will be adjusted annually by 2. 5% each year of the agreement. Presently the Baldwin Senior Living does pay property taxes on what is commonly referred to as “the pad site” where Building F will be constructed in the future,” Mulholland wrote. “This portion of the property does not qualify for the exemption in RSA 72: 23-k as it is not operated as housing, it is simply a vacant lot at present. Baldwin Senior Living is paying full property taxes on this piece of the property. The agreement addresses this issue of when Building F is under construction and taxes that may be due while the building is partially constructed. Building F will not qualify for the exemption until it is finished and operational. When that occurs the Baldwin Senior Living will need to apply for that exemption. During construction PILOT will be adjusted based on the property taxes actually paid on the partially constructed building however the adjustment shall not be less than the municipal portion of the tax levy.” Mulholland explained that the municipal portion of the property tax for 2024 would be $243,231. One question raised was what would happen with the agreement if there are changes to state law which no longer makes the property qualified for the benefits. Mulholland responded that they need to reapply on an annual basis then the benefits don’t apply. Town Councilor Deb Paul asked what the amount of total tax would be if they were taxed at the regular amount. “It would have been about a million,” Town Councilor Ted Combes said. The Town Council unanimously approved entering into the PILOT agreement with the Baldwins. Later in the meeting the Town Council was presented with a proposal for an similar agreement with New Balance, a property near the Manchester Regional Airport. Deputy Town Manager Kellie Caron explained that New Balance is purchasing the property at 55 Pettengill Road from the New Hampshire Business Finance Authority (BFA). Caron said the property was previously under a Payment in Lieu of Taxes agreement, which was approved by the Town Council in 2023. “Per Section 8 of the existing PILOT Agreement, upon transfer of ownership from BFA to New Balance, the PILOT will terminate, and the property will transition to taxation under the Town’s Commercial and Industrial Tax Exemption Program (RSA 72: 81),” Caron wrote. “The new agreement maintains equivalency with the original PILOT payment schedule, ensuring a consistent and equitable phase-in of local tax obligations.” It was noted that New Balance was expected to close on the property on Nov. 20. In a follow-up email Mulholland explained that language was included in the original PILOT agreement “when the building was originally constructed to allow for the transition to the CITE if New Balance purchased the property from the NH BFA.” “The terms of the CITE are the same as originally approved in the PILOT agreement. The new agreement merely removes the PILOT language as it is no longer applicable and continues the same conditions under the CITE,” Mulholland wrote. According to the CITE, New Balance would benefit by getting a 50 percent off the assessed value of the property in the first year and would incrementally move to 15 percent in the eighth year. Mulholland said it is an eight-year agreement and they would be in year four in 2026. “The agreement will end in 2030 which is the same schedule as the original agreement,” Mulholland wrote. The Town Council unanimously approved the Commercial/Industrial Tax Exemption Agreement.
https://londonderrytimes.net/town-council-oks-tax-breaks-for-baldwins-and-new-balance/
