Ulster agency pauses tax breaks for housing projects, but will consider Marlboro project

KINGSTON, N.Y. — Ulster County Industrial Development Agency board members have put a moratorium on discussion of tax breaks for housing projects with the exception of the proposed 104-unit Marlboro Bayside.

The temporary limit was approved during a video conference meeting Wednesday, Sept. 15. Attorney Joseph Scott said officials will review eliminating the tax breaks from agency policy.

“The IDA has been receiving inquiries regarding housing,” he said. “The IDA would like to review that in the context of getting more information to address some of the issues and concerns that the IDA has with the potential banning of financial assistance for housing projects. The IDA has determined that in order to do that we need to put a moratorium on the consideration of housing projects so that … the IDA has time to consider the information that it’s going to get with respect to its outreach.”

Under the resolution, the ban is scheduled to expire on Jan. 15 but could be extended by three months.

Officials wrote that the policy has been in place because “it is desirable and in the public interest for the agency to consider the issue of the development and support of housing in general in Ulster County” but time is needed for “adoption of new policies and procedures.”

While the resolution states that board members “will not consider the granting of any financial assistance to any proposed housing project,” they agreed only a few minutes after approving the resolution to set a public hearing on the Marlboro Bayside project. While both the agency chief executive officer and attorney advised against setting the Bayside hearing, board members considered it an obligation because the project had already submitted an application.

“It’s in the hopper, so to speak,” board Chairman James Malcolm said. “A public hearing doesn’t mean a project is going to go through or not go through. But there’s a lot of money involved that the applicant has already put in.”

The public hearing was set in a 6-1 vote, with board member Faye Storms opposed.

“I’m going to say ‘no’ based on the fact that the jobs they are offering are (only) three for a very, very long PILOT program,” she said.

Bayside developers are seeking an 18-year payment-in-lieu-of-taxes agreement that would save $5.38 million in property taxes. The $30.91 million project would also be eligible for $800,008.34 in sales taxes exemptions during construction and a waiver for $185,773.70 in mortgage recording tax.