The Middletown Industrial Development Agency approved a payment in lieu of taxes (PILOT) agreement for a planned medical college run by Touro, a New York City-based educational institution, at the closed Horton Hospital complex.
The Danza Leser Group, which owns the property, would pay no property taxes in 2014, and pay $59,379 in property taxes in 2015. Payments would go up $60,000 a year to $831,300 in 2028, before being taxed at full assessed value.
Both sides are reviewing the PILOT. The Danza Group would convert the hospital, which closed in 2011, into an osteopathic medical school run by Touro. The money that Danza is paying for the property would be divided between the city, school district, county and Middletown library.
Prior to Danza Leser buying the property, the property was tax exempt.