NEW WINDSOR, N.Y. (September 14, 2018) – The Orange County Industrial Development Agency on Thursday adopted final resolutions for two projects – the expansion of a warehouse in Goshen for a beverage distribution company and the construction of a brewery in Warwick.
The board approved a 10-year Payment in Lieu of Taxes (PILOT) for English Dana Enterprises’s $7.9 million project, as well as $264,000 in sales tax exemptions. The company, which distributes beverages in Orange, Sullivan and Rockland counties, plans to add 46,500 square feet to its existing 119,000-square-foot warehouse on Hatfield Lane in Goshen to accommodate a growing business. English Dana Enterprises currently employs 85 full-time workers and five part-timers. With financial assistance from the IDA, the company said it will add 18 full-time positions and 12 part-time hires. All new employees would be local.
The IDA board also voted to modify a resolution presented by Kraftify, which operates as Pine Island Brewing, to develop another brewery at the site of the former Mid-Orange Correctional Facility in Warwick. The company sought a 10-year PILOT for the $2.7 million project, which includes the purchase of 1.3 acres of land and the construction of a 15,000-square-foot production facility, as well as a canning line and a tasting room.
At Thursday’s meeting, the board authorized a 485-b, which grants Krafitfy a partial exemption for town and school taxes, as well as a sales tax exemption of up to $110,000 and a mortgage recording tax exemption of $18,000. This modification is a result of Kraftify’s retail component, as the IDA has opted not to provide a full 10-year PILOT for projects of this nature with more than a 10 percent retail element.
In other business, the IDA adopted a resolution extending IBM’s Sales Tax Exemption (STE) for another year; the existing program is currently scheduled to end in 2020. This extension increases the company’s STE for the Sterling Forest site by an additional $100 million, resulting in a total value of $175 million since initially accepted by the IDA in 2015.
The board also approved a request made by attorney Larry Wolinsky on behalf of Amy’s Kitchen to extend the date by which funds provided by the IDA in the amount of $500,000 for infrastructure and site work must be drawn. The original date outlined in the agreement between the parties was December 2018; Due to delays with the project and estimated timeframe in which construction will likely take place, the board agreed to extend the date to December 2020.
Additionally, the IDA board voted to terminate the 10-year PILOT for a Deerpark property owned by The HUB 1 after it was sold without IDA consent, therefore violating the terms of the PILOT. The board also voted to rescind approval given to Ridge Hudson Valley, LLC for construction of a 700,000-square-foot retail shopping center in the town of Newburgh. Construction on the project was expected to begin in the summer of 2017 and be completed by the spring of 2019. Since its initial approval, Ridge Hudson Valley, LLC has abandoned the site plans as outlined in their request for finance to the IDA.
Cross Roads Court Real Estate, LLC was issued a sales and use tax exemption by the IDA in November 2015. At that time, Cross Roads Court Real Estate, LLC was granted a total sales and use tax exemption in the amount of $593,125. However, during an audit by New York State, it was discovered that Cross Roads Court Real Estate, LLC had exceeded the maximum approved amount by $59,846.55. Earlier this week, the IDA granted the company 10 days to submit payment for the excess exemptions received.
“Cross Roads Court Real Estate, LLC overutilized its sales tax exemptions. They were authorized for up to approximately $593,000 in exemptions and they went over that amount by nearly $60,000. You’re only allowed exemptions on dollars that are approved,” said Laurie Villasuso, chief operating officer and executive vice president. “If the Orange County Industrial Development Agency does not receive compensation for the excess tax exemptions by the 10-day mark, the board has every intention of beginning legal proceedings to retrieve the money immediately.”
Also at its Sept. 13 meeting, IDA board members approved minutes from the August 9 meeting and accepted a report on the IDA’s finances as well as minutes from an audit committee of the board held on August 28. The board members also voted to approve the 2019 budget and a new retirement resolution. This resolution enrolls members in a Deferred Compensation Plan instead of the NYS Retirement Plan, as previously used by the organization.
