NEW WINDSOR, N.Y. (December 14, 2018) – The Orange County Industrial Development Agency on Thursday adopted initial resolutions for a public hearing for a 70,000-square-foot expansion at Goshen, N.Y.-based King Zak Industries, Inc. and the creation of a Fairfield Inn by Marriot on the campus of New York Stewart International Airport in New Windsor, N.Y.
Airport Properties VIII, LLC seeks a 10-year PILOT, a sales tax exemption of $424,411 and a mortgage recording tax exemption of $73,063 for the creation of a Fairfield Inn by Marriot in New Windsor, N.Y. The four-story, 83-room hotel would be open for operation in the spring of 2020. If financial assistance from the IDA is granted, the project would create a total of 23 jobs – 19 full-time positions and four part-time positions.
In a letter accompanying Airport Properties VIII, LLC’s application, Edmond J. Harrison, General Manager at New York Stewart International Airport, reported that its passenger traffic increased 61 percent since last year. The project for a proposed hotel also received support from Orange County Tourism Director Amanda Dana, noting the airport’s positive economic impact and the county’s deficit compared to its visitor growth and increased tourism spending.
GAM Property Corp. came before the IDA at its Dec. 13 meeting seeking financial assistance for a proposed 70,000-square-foot expansion at its current facility which includes a warehouse and distribution center, offices and state-of-the-art showroom located on Police Drive in Goshen, N.Y. The company seeks a 10-year PILOT as well as sales tax exemptions totaling $300,500, a mortgage recording tax exemption of $73,500 and Real Property Tax Agreement.
Steve Espostio, a general contractor representing GAM Property Corp., informed the IDA that the company has explored relocating its currently facility out of the county due to increased construction expenses caused by the Village’s natural shale. Should they choose to relocate to an area closer to New York City, GAM believes it will incur lower distribution and transportation costs to supply its products to existing international and domestic customers. GAM Property Corp. began in the old industrial park in Goshen nearly 37 years ago and has continued to expand its operations in Orange County. The application before the IDA is an effort to maintain its contributions to the local economy and job market.
“It’s a beautiful facility and they have really indicated their need, not only to expand at this point, but that this may be the first of more expansions with some manufacturing done on the site down the road if this expansion is successful,” said Laurie Villasuso, Operating Officer and Executive Vice President of the IDA. “Their current operations are very high-tech, organized and state-of-the-art.”
Should GAM Property Corp.’s request be accepted, the company would retain 90 full-time employees while creating 25 additional full-time positions. Its anticipation date of operation is October 1, 2019.
At Thursday’s meeting, the IDA board also reviewed an application from 134 Jessup Switch Road seeking a 10-year PILOT, sales tax exemptions of $570,000, a mortgage recording tax exemption of $26,500 and Real Property Tax Agreement. If granted, the financial benefits would assist in the construction of two flex building in Florida, N.Y., totaling 130,000 square feet, with office space and warehousing for four companies already secured by the applicant. It was disclosed – both in the application and during the meeting – that construction on the project has already begun, including site clearance, the pouring of footers and building of walls, and would move forward even if financial assistance from the IDA was not granted.
Although policies prohibiting financial assistance to be granted for projects that have already begun do not exist, and the IDA may grant extended benefits on a case-by-case basis for a project expected to have significant economic impact on the County of Orange as determined by the members of the IDA Board of Directors, the board did not motion for a vote on the application submitted by 134 Jessup Switch Road.
