SunCap/American Realty Capital Trust (ARC) PILOT Billing Timeline

February 2014
IDA closes PILOT and lease agreement with SunCap
March 28, 2014
Attorney Jim Heary directs JCIDA staff to file RP 412-a.
April 2, 2014
JCIDA files RP 412-a application for property tax exemption with town assessor. In time
for March 2015 taxable status.
August 2014:
Certificate of Occupancy issued.
Being after March 1st, it is too late for 2014. Next taxable status date is 3/1/2015.
General Brown issues school tax warrant to SunCap.
September 2014
Sept. 11th, SunCap notifies JCIDA of intent to sell property to ARC
Sept. 19th, Assignment and Assumption Agreement between SunCap and ARC
October 2014
Deed of sale recorded transferring ownership from SunCap to ARC
November 14, 2014
JCIDA receives copy of Sept. 19th Assignment and Assumption Agreement from Jim
Heary, along with attorney opinion letter and liability certificate.
According to Paul Warneck, the JCIDA should have submitted a new RP 412-a
documenting the new owners. Staff received no direction to do so from counsel and
assumed the exemption went with the property under the assignment and assumption
agreement. Despite the error here, the real issue revolves around what happened later in
November 2015.
January 2015
First tax payment due is to County and Town
Billed by County and town, as anticipated, since property was not exempt as of 3/1/2014.
March 1, 2015
Taxable status is now believed to be exempt since RP 412-a was filed in April 2014.
PILOT can now be billed by JCIDA. However, see notes for October 2015.

October 2015
Town Assessor puts parcel in Roll Section 1, taxable, and adding the 485b exemption
since the PILOT followed the same schedule. He believed it would be simpler and less
complicated to have payments billed by the county. See Oct. 25, 2015 email from Roger
Tibbetts to Lisa Smith (General Brown) and copied to Paul Warneck, Lyle Eaton, Don
Alexander.
November 2015
Lisa Smith of General Brown contacts Lyle Eaton by phone. Expresses concern that
having the parcel on Roll Section 1 will complicate her tax cap calculations.
By now, however, tax warrant has already been sent to ARC.
Lyle Eaton asks Roger Tibbetts to put the parcel on Roll Section 8 as exempt for JCIDA
to process future billings according to the usual scenario. See November 2, 2015 email
from Lyle Eaton to Roger Tibbetts, Lisa Smith, and Don Alexander.
Assessor sends email (also on Nov. 2nd) telling Mr. Eaton he has no record of the RP
412-a. JCIDA files another RP 412-a on November 5, 2015.
Assessor says he has made the change for 2016 and that the JCIDA will need to bill
ARC.
RPTL signed by assessor on 11/10/15 showing applicable taxable status as 3/1/15.
-------------------------------------------NOTE: This is where the confusion occurs. Based on the November discussions above (see
email discussion and RP 412-a), JCIDA understood that assessor had made an exception
(override) and that it should take over the billing as of January 2016. However, the actual
change of the parcel RS 8 was not effective until 3/1/16.
-----------------------------------------January 2016
JCIDA bills ARC for 2016 county and town taxes based on November actions.
According to the April 8, 2016 email from Paul Warneck, the county also billed for
2016 county and town taxes, plus relevied school taxes not paid in 2015.
April 7, 2016
JCIDA board of directors directs counsel to send letter for payment of past due taxes
Lyle Eaton contacts company. Enessa Bruk of ARC says they sent payment request
down the week prior and promises to check on it. Lyle notifies Joe Russell who says
hell hold off on letter.
April 8, 2016
Watertown Daily Times article appears noting discussion at 4/7 board meeting.
Paul Warneck calls reporter Ted Booker and sends email to Lyle Eaton that morning,
copied to Bob Hagemann, Jeremiah Maxon, and Scott Gray (Email attached), noting
potential issues with what was reported in that days Watertown Daily Times article.
2

Don Alexander receives call from reporter Ted Booker in the late afternoon
(approximately 3:30 PM) regarding the issues raised in his phone conversation with Mr.
Warneck.

April 9, 2016
Watertown Daily Times article published regarding billing gaffe.
April 11, 2016
ARC PILOT payment arrives in JCIDA mail.