Adams County officials spent several minutes Tuesday outlining what a Payment in Lieu of Taxes — known as a PILOT — actually is, emphasizing that no agreement has been proposed and no decision has been made. The discussion came as the county prepares for a potential application tied to a low‑income housing redevelopment in Geneva.
A PILOT is a state‑authorized tool that allows a property owner to make negotiated payments to local government instead of paying traditional property taxes. The county attorney told council members that Adams County has never used a PILOT before, and the explanation was necessary because the process is more complex than a standard tax abatement.
Under state law, a PILOT can only be approved after several steps: • the developer submits a formal application, • Economic Development verifies eligibility, • the commissioners and council review the proposal jointly, • and a public hearing is held before any ordinance is adopted.
The attorney said the developer is still completing paperwork and has not yet submitted the application.
Council members were told the request is expected to involve a low‑income housing project on a dilapidated site in Geneva. The developer would need a PILOT to qualify for certain federal tax credits, which are required for the project to move forward. In return, the county would negotiate how much the developer pays, how often payments are made, and how long the agreement lasts. The only legal restriction is that the negotiated amount cannot exceed what the property would normally owe in taxes.
Officials stressed that the county holds significant leverage because the project cannot receive federal credits without local approval. Council members questioned why the county would consider a PILOT, and the attorney said the developer must demonstrate how the project benefits Adams County before any negotiations begin.
Because the property is inside Geneva town limits, the town will also be involved in discussions about how any payments are shared.
No vote was taken, and no terms were proposed. Council members were told they will receive all application materials once the developer submits them, and the issue will return for public discussion at a later meeting.