The Putnam IDA has a specific application and approval process for commercial projects seeking IDA incentives. The following is a general guideline:

I. PRIOR TO FORMAL APPLICATION: Potential applicants are strongly urged to contact the Putnam IDA prior to applying for financial incentives. Doing so will serve to:

(A) Determine if a project meets NY State General Municipal Law and Putnam IDA eligibility requirements

(B) Provide an opportunity for an informal review of the proposed project, as well as the applicability of various incentives

(C) Confirm the timing and stages of the approval process

II. APPLICATION PREPARATION AGREEMENT FOR REIMBURSEMENT OF PROFESSIONAL FEES AND HOLDING ACCOUNT: Required prior to formal submission of the application. The holding account will be used to pay for expenses incurred by the Putnam IDA related to the project, including the Application Fee which will be drawn from the account at the time of submission of the application. See Application Preparation Agreement here.

III. FORMAL SUBMISSION OF APPLICATION: Applicants must complete one set of an original application and all additional documents required at least ten (10) days prior to the next formal IDA meeting. Regular meetings are held monthly. View meeting schedule here. To be considered for approval, all information requested in the application and supporting documents must be provided with application submission. 

IV. FEES: Incentive recipients are required to pay both the agency and agency counsel fees, both due at project closing. Typically, upon a formal application being submitted, the IDA will provide details of the agency’s anticipated fees. See Agency Fee Schedule here.

Steps to Approval of Incentives: 

1- Inducement Resolution: Upon execution of the Preparation Agreement and submission of a complete application, the Putnam IDA will consider an inducement resolution for the project. This resolution, if approved, will confirm that the project is eligible for benefits if it proceeds. At the Putnam IDA meeting in which the inducement is being considered, it is requested that the applicant attend or have a suitable representative attend to respond to any IDA member’s questions or requests for more information.

2- Property Tax Abatement: Information regarding the PILOT can be found in the Putnam IDA Uniform Tax Exemption Policy.  The process to negotiate a PILOT (Payment in Lieu of Taxes) will begin after the Inducement Resolution is approved.

3- Public Hearing: If the inducement resolution is approved by the IDA, a date for a public hearing is set and the project and IDA attorneys prepare project documents. Following a fully executed inducement resolution, the public hearing notice will be published, and a hearing will be held within the municipality of the project’s location. The public hearing is an opportunity for members of the public to provide comments on the project under consideration by IDA members prior to the next step in the approval process, the authorization resolution.

4- Authorization Resolution: Following the public hearing, the authorization resolution is considered by IDA members at a regularly scheduled meeting of the agency. This resolution confirms the specific details of the project and the specific incentives to be provided.

5- Project Closing: Often, but not required, the IDA closing is conducted while the applicant is closing on the property and/or financing. Apart from the IDA’s project agreements, a PILOT agreement (if applicable) must be approved by all participating parties (including the involved taxing entities). Given the timing of the taxing entities approval process, the PILOT closing need not be finalized at the time of the project closing date.