Legoland developer proposes reduced tax-break

BY ERIKA NORTON
GOSHEN — The developer of the proposed Legoland New York theme park for the Town of Goshen wants a reduced tax break agreement.
If the Orange County Industrial Development Agency accepts the agreement, Legoland's payment would increase from $61 million over 30 years to $87 million over 20 years.
The reduced payment-in-lieu-of-taxes (PILOT) deal for Merlin Entertainments is based on a report prepared by accounting firm KPMG. The report compared the originally proposed three-year plan with the new 20-year plan, and used data from the other two U.S. Legoland parks, located in California and Florida.
“While we believe our initial proposal of a 30-year PILOT would have generated tremendous economic benefits to the Town of Goshen, the Goshen School District and Orange County, we respect public feedback and are modifying our request to a 20-year agreement,” Head of Community and Project Relations for Legoland New York, Phil Royle, said in a statement. “The updated proposal will provide even greater economic benefits to the community.”
According to the report, without a PILOT deal, Merlin would have owed the county, municipalities, school districts and fire districts about $125 million. Under the new 20-year PILOT, Merlin would pay a little over two-thirds of that, or $87 million, and save about $38 million. Under the 30-year PILOT, Merlin’s payment was essentially cut in half, with them saving $65 million.
The $500 million Legoland New York would take up 153 acres on a 523-acre site on Harriman Drive in Goshen. Assuming there are 2 million visitors annually, the park could generate $280 million over 30 years from its share of sales tax on tickets, food and merchandise and lodging, according to the report.
Opposition weighs inRoyle also said in the statement that this reduced PILOT demonstrates Merlin is listening to public feedback and that they are responsive to community input. But, Legoland opponents, who have questioned a number of the developer’s plans from traffic and water, are not convinced.
“I view this as non-consequential,” said Michael Sussman, the attorney working for main Legoland opposition group Concerned Citizens for the Hudson Valley. “They made an excessive request knowing they could ‘compromise.’ We need not be gamed and subsidize multi-billion corporations which can access the capital markets and raise whatever monies they need.”
Regardless of the PILOT, Sussman said that the site for the project itself is still inappropriate, and that there are a number of other potentially appropriate sites which would not violate town master plans and zoning laws, or create a “traffic nightmare.”
The Town of Goshen master plan needs to be changed to allow an amusement park and the zoning of the Legoland site needs to be changed from residential to commercial development before the project can advance, both of which have yet to be approved by the town board.
The final environmental impact statement for the project has also yet to be completed and/or approved. The written comment period ended Jan. 17, and Merlin must now respond to those written comments, as well as comments from public hearings.
Orange County Executive Steven M. Neuhaus, an early supporter of the Legoland New York project, said he is also in favor of the 20-year PILOT.
“I’m for whatever is most beneficial to county taxpayers and still maintains Legoland as a viable project,” Neuhaus said. “A 20-year PILOT is obviously better than a 30-year one. Regardless, Legoland will pay more taxes than a housing development, and certainly more than is being paid now.”