OBSERVER file photo The Talcott Street building, now owned by Refresco, is part of a payment in lieu of taxes.

A Payment In Lieu of Taxes agreement with Refresco could lead to a hike in city of Dunkirk property taxes.

Treasurer Mark Woods reminded the Common Council about the PILOT at its final review meeting of Mayor Kate Wdowiasz’s proposed 2026 budget. He said unless revenue is increased or cuts are made somehow, the PILOT will cost the city a tax hike of approximately 15 cents per $1,000 of assessed property.

Woods subsequently explained to the OBSERVER that the PILOT changes the overall assessed property value in the city. The overall assessed property value is equivalent to the total taxable property.

The PILOT removes some of Refresco’s property from the taxable roll, however. The 15-cent rise in taxes would make up for that — unless councilors make changes elsewhere in the budget to even things out.

Woods was unsure of the terms of the PILOT and directed questions about that to Assessor Erica Munson. She emailed a document indicating that the PILOT is for 15 years, and started in April.

An OBSERVER article from May 2023 details a 15-year agreement offered to Refresco in exchange for redeveloping a Talcott Street building formerly used by Kraft and ConAgra.

The agreement proposed in 2023 was for Refresco to pay $6.963 a year for the first five years; $20,890 per year in years six through 10; and $34,817 annually in the final five years. That’s what wound up happening; the numbers are unchanged in the document Munson sent.

The news about the Refresco PILOT was the biggest to come out of the council’s final 2026 budget meeting this week. The rest of the meeting was relatively smooth and speedy.

Councilors did not make any moves Monday in response to Woods’ news. Just three of the five council members were there: Natalie Luczkowiak and Nancy Nichols were unable to attend the meeting.

It was mentioned that Wdowiasz put $60,000 in the law department personnel line to hire a paralegal. She was the last person to hold the job, giving it up at the end of 2023 after getting elected mayor.

“It’s for a paralegal we desperately need, given we have a part-time attorney,” said Fiscal Affairs Officer Ellen Luczkowiak. Wdowiasz said the attorney, Elliott Raimondo, “is tied up in all the litigation we have pending.”

Councilman-at-large Nick Weiser stated that the council hopes to pass the budget at its Dec. 2 meeting.

The state Comptroller’s Office gets to review and make recommendations on the budget, under the terms of the city’s Fiscal Recovery Act. Weiser said Dunkirk should have those recommendations by next week.