The Cayuga County Industrial Development Agency board this week took a big step to help save the Sterling Renaissance Festival, but it will need to monitor operations on the festival property to make sure the deal it made is honored.

The IDA has agreed to give some tax breaks to a development company that promises to continue running the 30-year-old summer festival and also add attractions for other seasons.

A payment in lieu of taxes agreement will save the developer money over the course of a 10-year deal while ensuring the viability of the Renaissance Festival and its 338 jobs.

It's also a good deal for the entities sharing in the property's taxes, too, because no existing income will be lost in the process and the future gains could be significant.

Cayuga County, the town of Sterling and the Hannibal Central School District all collect taxes on the 83-acre festival property, and while some PILOTs allow for development with very little guaranteed return, this tax break only applies to value added to the property in the future.

The operator will still pay taxes on the current assessment of $565,000 and then an additional percentage of value added over the next 10 years.

With plans to add fall and spring attractions to its offerings, the new owners of the Sterling site foresee a need for additional workers but do not plan to significantly alter the landscape there.

IDA board member Herb Marshall pointed out that maintaining the current payroll was “a very important factor” in the board's decision to grant the tax benefits.

The IDA now needs to keep an eye on this development as it evolves to ensure the promises made by the new owner to seal the deal are followed through.