City and MHA Reach PILOT Agreement for 11 Yale St. Text Size
The City of Holyoke and Mental Health Association, Inc. (MHA) have entered into a PILOT agreement for the recently acquired property at 11 Yale Street. A PILOT, or “payment-in-lieu-of-taxes” agreement, is a voluntary means by which a non-profit entity provides the city with funds or services to help offset the property tax loss that comes from a change in property classification.
The 10-year agreement, which takes effect upon occupancy of 11 Yale by MHA, includes an annual payment of $8,000 to the City of Holyoke, along with a commitment for an additional $3,300 annually in in-kind services from MHA. The $8,000 is greater than the taxes paid on the property in 2018 which totaled $7,610. The additional $3,300 of in-kind services reflects the increase in property value due to recent renovations, as well as a commitment from MHA to be active and engagement members of the Holyoke community.
Cheryl Fasano, President & CEO of MHA issued the following statement regarding the PILOT:
“At the onset of our plans for the Yale Street program, whether in meetings with neighbors, city council members, or city officials, MHA expressed a sincere commitment to making a Payment In Lieu of Taxes to the city of Holyoke. Our agreement with the city provides MHA with an opportunity to not only directly defray the costs of city services associated with our residential program, but a unique and creative opportunity to positively impact the lives of those who live and/or work in Holyoke. As a large not-for-profit organization serving the needs of individuals affected by substance use, mental health, acquired brain injury, intellectual disabilities and homelessness, MHA is eager to contribute its experience and expertise in ways which will directly address a variety of issues affecting Holyoke youth, adults and families.”
As Mayor, I want to thank Cheryl and her team at MHA for being thoughtful and engaging partners from the start. I am grateful for their long-term commitment to our city. This agreement is an excellent example of how non-profits and the city can work together. As the city begins a new fiscal year, we will continue to gather data and work to negotiate similar agreements for the benefit of our community.
Alex B. Morse, Mayor
Posted on July 18, 2019 by cityadmin