NORWICH – Though taking effect nearly one year later than anticipated, the Chenango County Board of Supervisors last week unanimously agreed to enter a payment in lieu of tax (PILOT) agreement with the Greek yogurt manufacturer Chobani.
The newly adopted PILOT is in connection with Chobani’s latest expansion project in the Town of Columbus (colloquially referred to as the “Phase Three Expansion Project”). As stipulated in the resolution passed by the county board, the PILOT grants certain financial assistance for Chobani’s recent $134 million expansion project in the form of an exemption from sales and use taxes on construction materials and equipment rentals, as well as a ten-year partial exemption from the payment of real property taxes.
In accordance with the PILOT, the partial property tax exemption takes effect on March 1. During the first year of the ten-year agreement, Chobani will receive a 95 percent real property tax exemption in the county, Town of Columbus and Unadilla Valley School District. This tax abatement will then diminish by ten percent every following year until the facility reaches full taxable value in 2024.