As opposed to a conventional taxation, the Town and Avalon Bay agreed to the following:
10% of the gross revenues would be considered a “PILOT” (Payment in Lieu of Taxes). It was anticipated at the time of the agreement that the gross revenue would amount to $7.7 million and the Town would receive $770,000/year. This would be offset by a payment for taxes on just the land portion of the property. The County would receive 5% of this payment and the schools would not receive a share of the PILOT. As part of the agreement, the Town would receive a $300,000 contribution toward an improvement within the community. Municipal services such as snow removal and sanitation services would NOT be provided by the Town.