BPC PILOT tax information

(1) BPC lease term expires 6-17-2069,
(2) Through 5-23-2011, annual base bent is $90,000 payable in equal monthly installments,
(3) 5-23-20011 through 5-23-2026, annual base rent will be the greater of $752,100 or 6%
of the market value of the land to a max. of $793,900.
(4) 5-23-2026 and for each lease year after, annual base rent will be 6% of fair market value of the
land determined at 15 year intervals or 109% of the base rent payable prior to a reappraisal date.
The lease is a "Net Lease" which provides that the tenant is to pay all costs and expenses of the
property. This is paid as additional as well as civic facilities payments, service road payments
and PILOT (payments in lieu of taxes) in addition to base rent.
The Ritz Carlton condo included a lower tax rate into the common charge when the building first opened,
but tenants are expected a big tax jump later on to catch up to the actual rate.
Unless you have a deep pocket for the high monthly common/maintenence charges, there will be big
jumps starting Year 2011. BPC is a great area to live. But I don't want to deal with the
big tax increases in the near future, so we stayed in Tribeca.
You could ask your R.E. broker about the BPC lease terms listed above.
I got the information from a reputable broker. There are many brokers don't want to talk about this
BPC lease issue. They just want you to buy, and you deal with this tax problem later on.
BPC is a great place to rent, but not to buy. Unless this tax issue is fine with you.

Thanks for this, very helpful.
The sales people are telling me that the tax is 100% deductible. Any truth to this?

That's right. I've owned property in BPC, paid PILOT, and deducted 100% with my accountant's blessing.