Bethany Home’s expansion project will result in an increase in the nonprofit’s Payment in Lieu of Taxes fee to the city of Waupaca.
The Waupaca Common Council approved a new PILOT agreement with Bethany Home during its March 17 meeting.
PILOT fees offset police, fire, EMS, snow plowing and emergency operations.
In 1987, the nursing home entered into an agreement with the city to pay PILOT fees.
Last December, the council approved the nonprofit’s requests for both a rezoning of the property and a special use permit for the project.
The city negotiated an increase in the fee, because Bethany Home’s expansion project includes an addition.
City Administrator Henry Veleker said the PILOT fee Bethany is currently paying the city, just on the Bethany Shadow Woods units, is about $23,000.
Beginning this year, there will be an additional PILOT payment on the existing nursing home facility. That will be $5,250 and is in addition to the Bethany Woods payment, he said.
That payment will be for 2015 and 2016 on the existing nursing home only and will then change once the addition is up and running, he said.
Veleker said when the new facility is built, the combined adjusted PILOT payment for the new addition and the existing nursing home is projected to be $21,700.
It will be adjusted once Bethany Home provides an updated appraisal and is in addition to the $23,000 PILOT fee the nursing home is already paying on the Bethany Woods units, he said.
The nursing home also pays the city a Fire Protection Fee.
The current Fire Protection Fee paid by Bethany, which includes the nursing home and the stand-alone units at Bethany Shadow Woods, is $3,060 a year, he said.
Veleker said the Fire Protection Fee is in addition to the PILOT payments and is based on the value of the structure.
Based on the values the city has at this time, the Fire Protection Fee, to account for the new addition and the existing nursing home, is projected to be $11,000 combined, he said.
That will be adjusted once Bethany gets an updated appraisal.
Bethany’s board approved the new agreement prior to it going before the common council, and the agreement was a topic of discussion during a Committee of the Whole meeting in January.
The fees are related to city costs only, Veleker told the council.
He also said the city will try to put together a PILOT fee template for future projects with nonprofits.