Southern Tier Environments For Living Director of Real Estate Steven Ald speaks to Jamestown City Council (February 23, 2026)
Jamestown City Council has approved a tax payment agreement with Southern Tier Environments For Living regarding the Gateway Lofts project.
The payment-in-lieu-of-taxes, or PILOT, agreement is for 15 years and involves STEL, a non-profit organization, paying the City $70,116.48 per year. Currently, the City receives no tax payments for the properties at 31, 53 and 55 Water Street as it’s currently owned by a different tax exempt entity.
Council members voted 8 to 1, with Council Member At Large Dan Gonzalez voting no after a motion he made to table the resolution failed due to not receiving a second sponsor.
STEL Director of Real Estate Steven Ald said he was glad the resolution wasn’t tabled as that could have raised questions by investors and New York State about the viability of the project.
He added that STEL is required by the state to show a 3% increase in all costs, unless they can justify in some way that that cost will not increase, “There’s no way that I could show them on paper and prove to them that our electric rates are not going to go up 3% or more. And they’re probably going to go up more. Same thing with paying the salaries of the people that work in the building. I can’t prove to the state that it’s not going to go up 3%. But, by having a pilot agreement, which is a written, enforceable agreement, we can go to the investors and the state and say, ‘Look, here it is in writing, signed by the mayor, saying that we’re not going to increase your taxes for 15 years.’”
Ald said STEL will have to renegotiate with the City for another PILOT at the end of the 15 year agreement.
STEL plans to rehabilitate the former Chautauqua Hardware building on Water Street into 110 units of affordable housing. The project also will include the creation of playground areas, walkways, picnic areas, green space and other related site improvements. STEL has applied for a building permit with the city and estimates the project will be completed by Spring 2028.
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