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Home » Valentine's Day » Canandaigua City Council debates PILOT for housing development at former Labelon

Canandaigua City Council debates PILOT for housing development at former Labelon

The property known as the Labelon Building at 10 Chapin Street in Canandaigua was a primary focus at last night’s City Council Meeting.

Savarino Companies has proposed turning the building, which has been vacant for nearly three decades, into 48 housing units. Forty of the units will be considered moderately affordable units. An additional 12,000 square feet of commercial space would also be added to the ground floor.

The developers have requested the PILOT in accordance with Section 577 of the New York State Private Housing Finance Law for this project to be feasible.

DiSanto Propane (Billboard)

A resolution was on the floor to approve and execute a PILOT agreement between the City and Savarino Companies for a 30-year term for the 21 million dollar project. The developer would pay a 10% shelter rent payment in lieu of real estate tax exemption.

Councilor Unrath said that he would like to get the opinion from a representative of the Canandaigua School District on the tax situation, and Counselor Lyon said he would like to continue to work with the partners in the County.

Council voted to table the resolution concerning the execution of the PILOT agreement until the next Council meeting.

At the February 1 City Planning Committee meeting, Savarino and the MRB Group conducted a presentation and analysis of the agreement. MRB added it was necessary and did not provide Savarino with an excessive return. For years 1-30 of the PILOT, the tax on the land would equate to $151,336, and MRB determined the public benefit would exceed three million dollars.

At the Planning Committee, meeting Councilor White expressed her concern over the length of the PILOT term. MRB had commented that length of time was necessary for the financials to work out and satisfy the lenders. Counselor Sutton said her concern that this agreement has not had enough scrutiny. Savarino said they need to know what direction to go in by the middle of the month.


Council unanimously supported and carried the resolution authorizing the County-Wide Highway Projects and Maintenance Mutual Aid Intermunicipal Agreement.

Ontario County includes 26 municipalities participating in this agreement in 2017, and the Council passed a five-year extension. The agreement’s goal is to share resources, knowledge, and capabilities in assistance to neighboring municipalities.

Councilor Dan Unrath commented on the positivity of the complementary nature of the resolution, while Councilor Steve Uebbing called it a “no brainer.”


Council resolved to set a public hearing on the Proposed Ordinance Amending Chapter 850, Article IX Entitled “Sign Regulations” at the City Council Chambers, Hurley Building, 205 Saltonstall Street, Canandaigua at 7:00 p.m. on Thursday, March 3, 2022. Those interested in attending or speaking can also access the hearing and the Council meeting that follows virtually on zoom at

According to the proposed ordinance, “The intent of this article is to allow adequate communication through signage while encouraging aesthetic quality in the design, location, size and purpose of all signs in a manner consistent with the First Amendment guarantee of free speech… and to ensure that signs are compatible with the use of the property to which they are appurtenant, the landscape, and architecture of surrounding buildings, are legible and appropriate to the activity to which they pertain, are not distracting to motorists, and are constructed and maintained in a structurally sound and attractive condition.”

The proposed changes to the current zoning code would remove regulations regarding signage content. The proposal would amend the code to reflect regulation on the construction and placement of signage. The council unanimously agreed to table the ordinance amendment until next month’s meeting.


Council discussed, with the insight from City Manager John Goodwin, the proposed resolution to add the provisions for a local energy code was essentially the same as the one passed last year. However, the wording was rejected by the Department of State, and Council needed to revise and reapprove the resolution.

NYSERDA developed the NYStretch Energy Code to prevent a statewide patchwork of stricter energy codes and is a model stretch code that is 10 to 12% more efficient than the minimum requirements of the 2020 Energy Conservation Construction Code of New York State.

Mayor Palumbo was the only dissenting vote, stating he would not support the resolution because it would cost more to the residents in the City.


Goodwin reported that the Boil Water Advisory caused by a water main break on January 28 between Jefferson and Ontario Streets was the largest in the City’s history, with 3.5 million gallons of water lost. The water was sampled and tested for bacteriological tests and was found in compliance with all regulations.

“We take pride in providing quality water,” commented Goodwin. “It was a perfect storm- it was in the middle of the woods in the middle of the night.”

Goodwin encourages residents to sign up for the Ontario County hyper-outreach notifications. Although the reverse 911 is effective in notifying residents of an emergency alert, most individuals utilize a cell phone versus a landline. They, therefore, need to sign up to receive these alerts through the Ontario County Website.