Deal Reached On Tax Payment For Senior Developments

Town officials have reached agreement with the LIFE (Lynnfield Initiatives for Elders) board on a months-long debate over property taxes on an upcoming senior housing development near MarketStreet Lynnfield. 

At Monday night's selectmen's meeting, Town Administrator Bill Gustus reported that a new PILOT agreement had been reached for all three of the LIFE senior housing developments in Lynnfield.

A previous agreement had generated considerable opposition from town residents as well as the board of assessors because it placed a smaller tax burden on residents at the 48-unit Colonial Village, which features larger units and other features compared to Essex Village and Center Village - including being located steps from a golf course.  

Gustus reported that under the revised payment deal with LIFE, the town will receive a pro-rated payment for the expected Colonial Village for fiscal year 2015, reaching $160,000 for fiscal year 2016. 

The formula uses the resale value of the three housing developments, discounted to 66% and then has the town tax rate factored in. The discount is used because a LIFE housing unit basically can't be sold to just anybody on the open market. 

Total payment in lieu of taxes from LIFE for the three housing developments in town would be $422,000, increasing 2.5% each year, and by an additional amount during years with a prop. 2 1/2 override. 

During the discussion, board of assessors member Don Garritty told selectmen that the assessors still object to the fixed 2.5% increases in the deal as opposed to just having payments fluctuate like other homeowners. He also expressed concern about how seniors elsewhere in Lynnfield who stay in their own homes are still paying taxes on the full resale values of their homes.