FAQs

Frequently Asked Questions

The Putnam County IDA provides incentives for private sector business investments and job creation resulting in economic growth and improved quality of life.

The Putnam County IDA coordinates these incentives for each project which are typically delivered in the form of real property tax exemption, sometimes offset by payment in lieu of taxes (PILOTS), sales tax exemption on project related construction materials and equipment, New York State Mortgage Recording tax exemption or other negotiated local incentives.

The primary way the Putnam County IDA promotes economic growth is through the issuance of tax exempt or taxable industrial development revenue bonds for businesses that wish to locate or expand their operation in Putnam County. Machinery and equipment may be financed with Putnam County IDA bonds. The Putnam County IDA issues the bonds; it does not loan money directly to the Company seeking IDA assistance; rather, a financial institution loans the funds to the Company through the IDA. Most often a bank or underwriter will purchase the bonds and, in effect, make the loan to the Company.

The bonds are secured by the financial strength and credit of the applicant and by a mortgage on the facility financed with the bonds. It is not unusual to request additional collateral to secure the bond issuance.

A second way the Putnam County IDA can promote economic growth is through a Sale/Leaseback transaction. The Sale/Leaseback transaction or “Straight-Lease” option requires the applicant to secure project financing through banks or private sources without utilizing bond issuance. In this transaction, the Company conveys title to the project to the Putnam County IDA. The Putnam County IDA agrees to grant mortgages on and security interest in the project in favor of the lenders in behalf of the Company.

The purpose of this kind of transaction is to make the tax management capabilities of the Putnam County IDA available to a project without including the Putnam County IDA in the financing for a project to reduce the complexity and expense involved in the transaction. The Putnam County IDA will re-convey title to the project or company at an agreed upon date; normally at the end of the PILOT (Payment in Lieu of Tax) abatement period for the project.

How is the IDA funded?

How is the Putnam County IDA governed and managed?

What geographic area may be considered for IDA benefits?

What laws apply to the Putnam County IDA?

The following State laws are binding on the operation of our IDA:

Open Meeting Law: The IDA must give notice to the public of all Board Meetings and Public Hearings. All Meetings and Hearings are open to the public and Notices must be published in the County Authorized Newspapers (established by the Putnam County Legislature) at least one (1) week in advance for Board Meetings and ten (10) days in advance for Public Hearings.With regard to IDA Board Meetings, the public may attend and comment on any Agenda item(s) at the end of the Meeting, after being acknowledged by the Chairman of the Board. The public is welcome to submit written questions in advance of the meeting regarding Agenda items.
With regard to Public Hearings, the public may submit written comments, positive or negative, prior to the Hearing or they may request an opportunity to address the Public Hearing. In either case, the Public Hearing Officer is not required to comment on the questions/comments submitted due to legal restraint. Board Members are not required to attend the Public Hearing. The time and date of the Public Hearing is determined by the Chairman of the Board and/or the Chief Executive Officer. The purpose of the Public Hearing is to gather public comment/concerns about a proposed Project that has been submitted to the IDA. Once the Public Hearing has been closed, the Hearing Officer completes a Public Hearing Report and submits it to the Board for review at an IDA Board Meeting. At this Board Meeting, the public is invited to participate and comment on the recommendations of the Board.
State Environment Quality Review: Requires that the IDA comply with Article 8 of the New York Environment Conservation Law and the implementing regulations of SEQR.
Freedom of Information Law (“FOIL”): The IDA must comply with Article 6 of the New York Public Officers Law which requires, with limited exceptions, the IDA must provide public access to the records of the agency. A public request to “pick up” or receive mailed copies of records released under FOIL will be accommodated at a cost of 25� per individual copy plus applicable mailing costs (if any). The IDA must receive funds for copies mailed out prior to releasing documents to the Post Office.
Conflict of Interest: The IDA must comply with Article 18 of the New York General Municipal Law defining “conflicts of interest” and the IDA is bound by Section 810(3) of the New York Municipal Law regarding Putnam County IDA Board Members, Officers and employees for the purpose of “State Ethics Law” including annual financial disclosure.

What benefits can the IDA administer/coordinate, and to whom?