Green space plan not good business

Using William Kindel's $12 million and $15,000 per acre estimates, the Town of Amherst would purchase 800 acres for "open space." Such purchases will necessarily deprive the town of property tax revenue.

First, whatever taxes are currently paid on the land would be lost, as it would become town property. But the far greater loss would be on potential taxes from whatever type of development might otherwise take place on a particular parcel.

For example, in the case of office buildings, there is typically at least 10,000 square feet of building per acre. Using even this figure, 800 acres could be the home of 8 million square feet of office space. If assessed at, for example, $100 per square foot for just the buildings, there would be an aggregate $800 million assessed value. A typical full value (town, county, school) rate in Amherst is about 3.5 percent on full assessed value. The IDA payment in lieu of tax schedule for offices starts at 20 percent on buildings (not land), rising to 60 percent at year 10, then full assessment at year 11. Even with this abated schedule, the potential taxes for 8 million square feet of office buildings would be $117,600,000 in taxes foregone over just the first 10-year, abated, schedule. In addition, the lost taxes on land purchased at even the $15,000 per acre rate used by Mr. Kindel would be $12 million times 3.5 percent, or $420,000 annually, once all the land is purchased.

There would be a blend of property types not developed in virtue of Mr. Kindel's proposal, but even with property tax abatements as part of the lost tax revenue mix, the losses are unconscionably high. This is the worst possible proposal for the town and the worst signal to send to potential town businesses.

Stephen Hunt Barberry Lane

Amherst