Developer says cancelled PILOT agreement has put CityGate in jeopardy

Local News

The development in Rochester that houses Costco could be in jeopardy, a lawsuit filed against the city and Monroe County reveals.

In the lawsuit, Anthony J. Costello and Son is asking a judge to restore a PILOT tax break agreement that was cancelled last year.

Costello claims they have been “willing and able” to abide by the terms and payments of the PILOT agreement, but failures on the part of the city, county and the county’s industrial development corporation, also known as Imagine Monroe, have made it so Costello can’t execute payments.

Costello says they worked in “good faith” to make the payments until the county abruptly cancelled the PILOT agreement. Now, as a result of that decision, the lawsuit says the development has been “placed in grave jeopardy.”

Costello and Sons are now calling on the court to restore the PILOT along with other lease and leaseback agreements.

In a statement, the county says the decision to cancel the agreement came after a request by the City of Rochester.

“Imagine Monroe terminated the PILOT for CityGate at the request of the City of Rochester,” county spokesman Jesse Sleezer told News 8. “Beyond that, neither the County nor the IDA have any further comment at this time, given the matter is subject to pending litigation.”

News 8 has reached out to the city for comment.

The CityGate plaza is home to a Five Star Bank Branch along with other restaurant space and Costco.

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