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PILOTs

September 18, 2025

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What is a PILOT?

Payments in lieu of taxes (PILOTs) are a financial agreement where a property owner makes a predetermined payment to a local government instead of traditional property taxes.

In NYS school districts, PILOTs play an important role in the tax cap calculation formula:

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Who approves PILOTs ? How do they work?

Nassau County Industrial Development Agency (IDA)

Before refurbishing or reuse of a property the owner would ask the IDA for consideration for a PILOT.
The IDA reviews project and holds public hearings before determination.
If approved, the tax assessment on the property is ‘frozen’ and the IDA then creates a payment schedule

Monies are paid directly to taxing agencies (school, village) instead of contributing to the specific tax class

Therefore PILOT’s are considered revenue in our annual budget

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Revenue Comparison

Revenue	2024-25	2025-26	Change
State Aid	14,134,816	13,973,572	(161,244)	-1.14%
Tax Levy	87,217,536	89,028,093	1,810,557	2.08%
PILOTs	3,700,000	3,800,000	100,000	2.70%
Other Revenue	3,000,000	3,000,000	0	0.00%
App. Fund Balance Transfer to Capital	1,000,000	1,600,000	600,000	60.00%
App. Fund Balance Operating Costs	500,000	795,828	295,828	59.66%
Total Budget	109,552,352	112,197,493	2,645,141	2.41%

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Understanding the Tax Levy

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Adjusted Base Proportion

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Mineola’s PILOT Timeline

First PILOT in Mineola was 2014-15

Since then, 16 total PILOTs have been approved.

We have notification of two more being reviewed.

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Mineola PILOT Table

Location	Name	# of Apartments	PILOT Duration	PILOT Total Value
250 Old country road	1 Third Ave	315	20	$17,672,216
140 Old Country Road	Allure	275	20	$16,222,989
104 Front Street	Hudson House	36	20	$1,934,667
199 Second Street	Morgan Parc	266	20	$9,145,478
120 Searing Avenue	Fairfield Metro	96	20	$5,846,182
121-127 Searing Avenue	Fairfield Metro	96	20	$5,846,182
222-224 Second Street + 225 - 255 E. Second Street	Alkier Steel LLC	0	20	$10,706,927
435 First Street	New warehouse	0	20	$2,775,950
147 E. Second Street	Steel Saw LLC	0	20	$2,955,128
215 E. Second Street	Steel Saw LLC	0	20	$2,078,411
105 Searing Avenue	FairField Metro	54	20	$5,980,218

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Mineola PILOT Table

Location	Name	# of Apartments	PILOT Duration	PILOT Total Value
155 First Street	(Post office)	30	15	$4,133,724
147, 165, 185, 205, 215 E. Second Street	Steel Saw LLC	Factory refurbishment	20	$2,580,716
110-114 Old Country Road	“OCR Court House LLC”	250	25	$20,632,524
111, 161, 163 Second Street + 85 Willis Avenue	“Willis Rail Yard LLC”	92	25	$6,626,088
105, 109, 121, 125 Front Street + 106 Third Street	“Third Front LLC”	250	25	$21,031,389

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Mineola PILOT Map

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District PILOT Schedule

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District PILOT Schedule

Current PILOT schedule indicates annual fluctuations in PILOT revenue.

Some years include significant losses in revenue that have the potential to negatively impact programming.

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What Should We Do?

Recommended Action: insulate operating budget from PILOT revenue fluctuations by using PILOT revenue for capital improvement funds only.

Anticipated Outcomes: When PILOT revenue increases, the district’s ability to invest in capital projects will increase. When PILOT revenue decreases, the district will reduce and defer capital investment.

Anticipated Benefits:

Continued capital investment while protecting academic programming and staffing from revenue fluctuations.
Increased control and predictability in the tax levy required to maintain programming.

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Thank You!

Mineola School District