The purpose of this chapter is to delineate
and define the policies which the Townsville Urban Renewal Agency
will follow in negotiating land leases in the Townsville Industrial
Park (New York State Electric and Gas site). Such policies are essential
for maintaining consistency throughout the leasing process and for
achieving the maximum benefit from this economic development endeavor
for the City of Townsville. It is the intent of this chapter to set
forth goals and objectives which the Agency desires to accomplish
and the procedures it will utilize in doing so. The policies below
shall be in effect for 36 months following a report on leasing activities
by the Department of Planning and Development.
The following statements are made as guidelines
to be used in formulating the lease agreement:
A. The term of the lease shall be 99 years. The lessee
will have the option to purchase the land as allowed by the Appalachia
Regional Commission and the Housing and Urban Development Agency,
but in no case before 20 years have elapsed.
B. The rent shall be approximately $2,100 to $2,500 per
acre per year* for the first 20 years for tenants signing leases within
five years of approval of these lease policies. Review of rent schedules
will occur at approximately every five years thereafter for any remaining
industrial sites. After 20 years, the Townsville Urban Renewal Agency
shall negotiate lease terms with firms that wish to remain lessees.
(*NOTE: Final land lease and purchase prices are subject to negotiation
within the above-stated ranges.)
C. The purchase price of the land any time after the
20th year shall be the 1985 market price as appraised by the city's
appraiser, approximately $25,000 to $30,000 per acre.* (*NOTE: Final
land lease and purchase prices are subject to negotiation within the
above-stated ranges.)
D. In addition to rent, the lessee shall pay an annual
administrative fee to the city, said fee subject to negotiation.
E. The lease agreement will stipulate that construction
of the principal plant shall begin within a specified time period.
If the lessee fails to initiate construction within that time, the
lease will be terminated and the improvements shall revert to the
city.
F. The lease agreement can include the option for other
sites within the park; terms of the option shall be determined by
the Townsville Urban Renewal Agency.
G. The lease agreement will stipulate a minimum value
for the proposed plant.
H. All site and architectural plans must be approved
by the Agency prior to construction.
I. Tenants or developers for tenants may be eligible,
subject to local government approval, for the State Preferential Tax
Assessment Program, whereby payments in lieu of property taxes are
reduced 50% the first year, with the reduction decreasing incrementally
by 5% per year.
J. Property in the park may not be subleased or transferred
in any way to another tenant or user without Townsville Urban Renewal
Agency approval.
K. All construction within the park shall conform to
the covenants, easements, restrictions and conditions governing the
site.