[deleted] t1_iw2wwd4 wrote
Reply to comment by Successful_Pen_2387 in Jeez. Duplex penthouse at Beacon with 2300 sqft patio for 2.5 million. I feel like this is a reasonable price for what you get. by mooseLimbsCatLicks
22k a year is what a home assessed at 1.4m would generate in property tax at the 2021 rate. At the 2022 rate it'd be a home assessed at just over a million.
That shortfall is made up by ordinary homeowners.
objectimpermanence t1_iw31gwn wrote
The Beacon is not exactly in a prime location. These buildings probably wouldn’t have been redeveloped back then without the abatements. Or the project would’ve been seriously scaled back.
Read up on the history of the condos at the Beacon. Here’s one story about it.
Sales started shortly before the financial crisis in 2008. For years, they had a tough time selling units even with the tax abatement. Units were selling at auction at deep discounts.
They may not have gone ahead with the rest of the project or delayed it indefinitely without abatements, which would mean lost revenue for the city.
Construction jobs and PILOT revenues (i.e., the $22k/year from this penthouse unit) are better than a massive complex of abandoned buildings that contribute nothing to the city.
It would be a different story if you were talking about some of the waterfront high rises with generous abatements, like 77 Hudson or Crystal Point. Those building are in much better locations and probably would have quickly sold out once the economy recovered even without abatements.
mooseLimbsCatLicks OP t1_iw3mwlm wrote
Very reasonable take and nice breakdown. Love Reddit for the good discussions you get
[deleted] t1_iw99kw9 wrote
It's not a history if it stops at 2012. They got a further $33m in tax breaks in 2013 and in 2018 Fulop tried to take away the abatements for four of the buildings because they weren't in compliance with the agreement.
Successful_Pen_2387 t1_iw37lkq wrote
When the sale goes through the abatement paid will go up as well. We can check next year.
If JC never had abatements most of the downtown gentrification just wouldn't have happened. Ordinary homeowners would be paying much much more.
Viewing a single comment thread. View all comments