The developer of a $14.4 million project to build a new cancer treatment center for Auburn Community Hospital is seeking over $4 million in tax breaks to pay for it.
Local residents will have a chance to comment on the proposal this week when the Cayuga County Industry Development Agency holds a public hearing on its application for sales and property tax exemptions.
Park Grove Realty LLC has created a subsidiary called PG Auburn MOB LLC for the project. The Rochester-based developer has sought approval from city officials to construct a new 12,000 square foot cancer treatment center building.
Upstate Medical University Hospital is also a partner in the project.
Here’s where things get tricky for those involved, though. Due to the arrangement and players involved, the property has lost its tax-exempt status that applies to nonprofit hospitals. The hospital will be responsible for covering the property taxes, but to make it feasible, those involved said they need additional breaks.
An exemption on construction materials of $360,000 has been requested. As well as a mortgage recording tax exemption of $82,500. Under the proposal the assessed value of the site would be reduced significantly, resulting in $3.79 million in tax savings over 15 years.
According to docs, Park Grove expects a payroll of $1.7 million by the third year and 19 new jobs.
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