IMPACT OSI'S DECISION NOT TO RELOCATE TO GREENBURGH WILL HAVE

Received a call from an attorney for Astellas. He represents Astellas which took over OSI. He advised me that they will be closing the Ardsley facility on 9A as of October, 2011 and will be doing very limited construction between now and then to protect their investment. This is disappointing. OSI is a major bio tech company. They had planned to move their corporate headquarters to Greenburgh from Long Island. Earlier this year Astellas acquired the company in a takeover. Their presence in Greenburgh would have created more jobs for the community and would have helped boost the local economy. Although they won’t stay in Greenburgh – the town benefited from their temporary presence. We estimate that we received about $400,000 in building permit fees for the construction work they received building permits for. We worked out a pilot agreement which protects the town. OSI is still responsible for the PILOT AGREEMENT.

In negotiating the agreement for the fifteen year term, first, the property is not permitted to file a Certiorari proceeding. Secondly, the property was purchased at a market value of $27,000,000, OSI is responsible for a payment In lieu of taxes based on a market value of $32,000,000 plus any improvements that increased the market value that were or are going to be made to the site through the term of the agreement. Lastly, if the company goes in to default of the agreement, they are still responsible for the payment in lieu of taxes.

Based on OSI’s purchase price in 2008 and the current economic downturn in the market, the PILOT payments exceed the taxes which would be payable were the facility to be vacant. Also, if the property is to go back on the taxable roll due to OSI's default or sale of the property, the company would remain liable for the PILOT amount for the full term of the PILOT agreement., even if the taxes turned out to be less

The terms of this agreement are similar to those contained in other PILOT agreements negotiated during my tenure, and similarly, protect the town from the devastating effects that a move such as this might have had otherwise. Our town team (Edye McCarthy, Assessor; Tim Lewis, Town Attorney, John Lucido, building inspector, Thomas Madden, Commissioner of Planning and the Town Board always tries to consider worst case possibilities –so we can protect residents of the town. I am pleased that we were careful before approving the agreement with OSI.
PAUL FEINER
Greenburgh Town Supervisor