The Kingstonian, a mixed-use project that will include 143 apartments, a hotel, and parking garage in Uptown Kingston, is moving forward.
The Ulster County Industrial Development Agency Board overwhelmingly approved a PILOT (Payment In Lieu Of Taxes) property tax break that the developers said was necessary for the project to proceed.
What You Need To Know
- By a 6-1 vote, the IDA board approved $25 million in property tax exemptions for developers of the Kingstonian
- IDA board member James Malcolm recommended the board send letters to their local senators and assembly members, asking them to change state law to make PILOT agreements fairer to school districts
- Construction could begin later this year
By a 6-1 vote, the board voted up the $25 million tax exemption over the next 25 years.
Most of that money, at least $16 million, will be withheld from the Kingston school district. The school board voted down the tax break, and then some members lobbied the IDA board not to override the school board’s decision.
Some supporters of the tax break admit the school district stands to sacrifice the most yet benefit the least before casting their votes.
One member suggested the IDA board and other community leaders lobby state lawmakers to change state law that allows developers to withhold a disproportionate amount of taxes from school district levies.
“The impacts of tax caps, I don’t deny it’s the case that it impacts the school district," Board Member Richard Jones said before voting 'yes.' "That’s not something any IDA can fix. That has to be fixed by Albany."
The Ulster Co #IDA just overwhelmingly approved a $25+ tax break for the developers of the Kingstonian. The $52 million project will include a hotel, #apartments, #parking and a promenade. Below is the roll call for the vote. You’ll hear one board member explain her ‘no’ vote. pic.twitter.com/N7d4e9VYLp
— Ben Nandy (@BenNandyNews) January 20, 2021
The lone IDA board member to vote 'no' on the tax break, Diane Eynon, said the developers are asking for too much.
"A $17 million parking garage to construct for a $26 million inducement for maybe a net of 200 additional parking spaces: For those reasons, I don’t support the project," she said before voting.
IDA board member James Malcolm recommended the board send letters to their local senators and assembly members, asking them to change state law to make PILOT agreements fairer to school districts.
Construction of the Kingstonian could begin later this year.