Back in March 2025, Mayor Garcia announced that beginning July 1, 2025, a PILOT (Payment in Lieu of Taxes) policy will be implemented. The purpose of the policy is to bring in a portion of the money a tax-exempt property (for example, properties owned by non-profit organizations and quasi-public institutions) would pay were it not tax-exempt to help pay for critical municipal services that benefit everyone. Click here to read the March announcement.
On September 25, 2025, the Garcia administration mailed out a letter to all tax-exempt organizations to follow-up on the announcement and provide notice to tax-exempt agencies of the policy. To review the list of all tax-exempt properties in the City of Holyoke, click here. The notice reads as follows:
“You are receiving this notice because your organization has ownership control of one or more properties within the City of Holyoke that are tax-exempt. We at the City of Holyoke value the contributions of your organization to help improve the quality of life for people. I strongly believe your organization’s efforts and services are important to the well-being and growth of our city, and we appreciate your ongoing commitment.
The people we both serve deserve quality services not just from your organization but from their local government as well. In order to sustain the financial health of Holyoke and continue providing high-quality services to the public, the City has adopted a new policy, effective July 1, 2025 (see attached). Under this policy, the City will be seeking Payment in Lieu of Taxes (PILOT) agreements with tax-exempt organizations that own one or more properties within the City of Holyoke. It’s not uncommon for tax-exempt organizations to get into PILOT agreements with municipalities. In fact, we have a handful of tax-exempt organizations that are either paying taxes or in a PILOT agreements such as the Valley Opportunity Council and The Consortium, both organizations that have agreed to pay 100% of their taxes. Assuming they have an off year financially, we can amend. We are also thankful for Holyoke Gas and Electric, ISO New England, and the Massachusetts Green Performance Computing Center who also pay PILOTS.
I recognize that while tax-exempt organizations significantly benefit our community, maintaining a stable and fair tax base is essential for the city’s continued development and service delivery. This policy aligns with our commitment to equitably distribute the costs of municipal services among all users – including citizens, taxpayers, and tax-exempt institutions. We look forward to working collaboratively with your organization to establish a PILOT agreement that reflects our shared commitment to the community’s sustainable growth.
Please reach out to my assistants to schedule a time we can meet and discuss drafting your PILOT agreement at 413-561-1600 or mayorsoffice@holyoke.org. Thank you for your partnership.”