Albany Medical Center Provides Payment of $500,000 to the City of Albany to Offset Tax-Exempt Status
October 19, 2016
Date: October 19, 2016
Contact: Dennis Gaffney
518-434-5076 (wk) 518-281-7252 (cell)
For Immediate Release
Albany, NY - Albany Medical Center President and CEO James J. Barba today provided $500,000 to the city of Albany on behalf of Albany Medical Center to help the city fund necessary services provided to residents, businesses and visitors.
At a press conference with Mayor Kathy Sheehan at Albany Medical Center, Barba noted that while non-profits are exempt from paying property taxes, the medical center’s board of directors has recognized the need for every institution in the city to play a role in strengthening its community. This is the second consecutive year that Albany Medical Center has provided a $500,000 Payment in Lieu of Taxes (PILOT) to the city.
“Jim Barba understands that Albany Med’s success is closely linked to the success of the city of Albany,” said Albany Mayor Kathy M. Sheehan. “This important and voluntary payment shows once again that Albany Med is a leader in the Albany non-profit community, helping fund the quality services that Albany non-profits and all the people in our city have come to depend upon.”
"Years ago, working with other non-profits, Albany Med took the lead in recognizing Albany's financial challenges,” Barba said. “We provided a significant voluntary payment to the city in hopes that other nonprofit organizations would follow suit, and remain committed to working with other nonprofit entities to help Albany address its fiscal challenges.”
Mayor Sheehan noted that, as the center of state government, Albany is impacted more than any other large city in the state, with nearly two-thirds of the city’s land exempt from taxes. While the city of Albany is the fifth largest city in New York State (excluding New York City), it has the highest percentage of exempted properties. It also has the highest value of exempted property per capita, double that of Syracuse and four times that of Buffalo and Rochester.
Albany Med has played a central role in strengthening the community surrounding the hospital. Since 2006, the medical center has invested tens of millions of dollars to build offices and parking structures to serve a growing population of patients, and has partnered with other businesses to help revitalize an area of the city that had long been overlooked. The most recent project involves partnering with Tri-City Rentals to redevelop two city blocks into mixed-use, retail, and residential properties.