Albion village to ask Legislature to make up tax loss after county bought 2 buildings

Bank of America, former GCC coming off tax rolls, costing village $11K

Photos by Tom Rivers: The Orleans County Legislature last year bought the former Bank of America on South Main Street, pictured at left,  to be used by the treasurer’s office. The county also bought the former GCC building to be used for probation and the district attorney’s office.

ALBION – The Albion Village Board said Orleans County’s acquisition of two buildings last year will cost the village about $11,000 in lost tax revenue.

The village wants the county to make up that difference.

The county in October approved buying the former GCC building at 456 West Ave. Orleans paid $975,000 for the building owned by Herring Enterprises of Holley.

The site is assessed for $450,000. That building generated $8,608.50 in village property taxes in 2023-24 with the village tax rate at $19.13 per $1,000 of assessed property.

The county intends to move the district attorney’s office and probation department from the Public Safety Building to the GCC site. The Public Safety Building will be reconfigured with more space to be used by the Sheriff’s Office.

In September the County Legislature approved spending $250,000 for the former Bank of America site at 156 S. Main St. It will become the treasurer’s office. That building has a drive-through and is more easily accessible than the current office on East Park Street, county officials said.

The bank is assessed for $125,000, which accounted for $2,391.25 in village taxes in 2023-24.

Both properties will still have to pay village taxes in the 2024-25 budget when the tax bills are due in June. They become exempt from taxes for the first time in September with school taxes, county officials said.

The Village Board worries about a shrinking tax base in the village. In the 2023-24 budget, the overall assessed value dropped by 1.08 percent or by $1,663,794 – down from $154,457,302 to $152,723,508.

Most of the loss in tax base was from the assessed value being lowered at the plaza at 318 West Ave. That plaza includes Save-A-Lot, Pro Hardware, Dollar Tree and the vacant spot formerly for Gordman’s. That value for the site was reduced from $1,856,300 to $816,000 as part of a settlement between the Town of Albion and the owner, A & D Properties (Westwood Financial).

The reduction was a drawn-out process and local officials were expecting an assessment drop. But the county’s purchase of the two buildings caught Albion village officials by surprise.

The Village Board is working on either a letter or a formal resolution to be sent to the county, asking to make up for the lost tax revenue.

The state government has PILOTs (payment in lieu of taxes) with many municipalities around the state when the state acquires land for parks, forests and other purposes. The state gives the City of Albany $15 million a year as the state capital to help make up for no property taxes in the city for so much of the state property. In Albany, 64 percent of the city is tax exempt.