About
While the City of Albany Industrial Development Agency and Capital Resource Corporation serve a similar general purpose, each entity is governed by different State legislation and organizational by-laws. The Industrial Development Agency is an independent public benefit corporation established by a special act of the New York State Legislature at the request of the City of Albany — the sponsoring municipality. The Capital Resource Corporation is a not-for-profit local development corporation formed under the Not-For-Profit Corporation Law of the State of New York.
Project Assistance
Each organization offers certain financial assistance a project may need such as real property tax abatements in order to further their missions. The primary difference between the two entities is that the Capital Resource Corporation focuses on providing assistance to not-for-profit civic facility projects. Prior to 2008, the Industrial Development Agency issued tax exempt bonds for such projects, but the Agency’s ability to do so ended when the State legislation governing this lapsed.
The City of Albany IDA and CRC have four available forms of assistance for projects:
Mortgages Recording Tax Exemption: Mortgages filed associated with properties in the City of Albany carry mortgage recording taxes. For qualified projects, the City of Albany IDA has the ability to provide an exemption from a portion of these taxes.
Sales and Use Tax Exemption: The City of Albany IDA has the ability to provide a Sales and Use Tax Exemption to qualifying projects. the exemption allows for the cost of acquisition or lease of project related construction material, machinery and equipment to be exempt from sales and use taxes.
Real Property Tax Abatements (CAIDA): The City of Albany IDA offers real property tax abatements to projects that result in an increase in assessed value for the affected taxing jurisdictions (the County, City, and School District). Through a payment in lieu of taxes (PILOT) agreement, the project makes scheduled payments based on an agreed-upon percentage of the increased assessed value that would otherwise be fully taxable if the project proceeded without IDA assistance. PILOT payments are distributed in the same way taxes are. These structured payments to taxing jurisdictions are used to increase taxes gradually on new investment rather than suddenly, which would make projects unfeasible. This tool stimulates economic growth and increases revenue to taxing jurisdictions, further strengthening the City of Albany’s economic vitality.
Access to Conduit Bond Financing (CACRC): The City of Albany CRC can provide access to low interest tax-exempt and non tax-exempt conduit bond financing for qualifying projects. CRC operations are funded by applicant fees which are able to be reinvested back into the City of Albany through strategic programming and agreements with Capitalize Albany by supporting its grant programs. Choosing the local option for access to this financing allows your organization to further reinvest in the community.
All projects go through a vigorous three-phase review in presenting a detailed application to the Board. All application related decisions are made following a Board and Staff analysis, public comment period, and public hearing. The City of Albany IDA follows State regulations and supports the recommendations of the City’s strategic economic development neighborhood plans.
City of Albany IDA PILOTs are structured to have projects pay, at a minimum, existing revenue levels collected by taxing jurisdictions for the property. Projects assisted by IDAs statewide must not be able to move forward “but for” the assistance provided.
Both the City of Albany Industrial Development Agency and Capital Resource Corporation are each governed by a seven-member Board of Directors. Members are appointed by the City Common Council and must be residents of the City of Albany. Whenever possible, each Board member is selected based upon having a general background or expertise in industry, business, economic development, urban planning or banking as well as possess a commitment to the revitalization of the City.
More About The City of Albany IDA and CRC
To learn more view Fact Sheets here or below for each entity.
