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The road paved by a $30.6 million dollar Kingstonian PILOT (in exchange for a parking garage): A timeline and next steps in October 2020

By Rebecca Martin

Community members who have been following the Kingstonian project’s payment-in-lieu-of-taxes (PILOT) request have asked for more detailed financial information to understand the potential impacts (including developer’s “trade secrets” which are fair game for a public/private partnership). Others are up in arms that a wealthy developer who wants to create high-end housing and a luxury boutique hotel in Uptown Kingston would have the audacity to request a 25-year, 100% tax exempt PILOT agreement worth $30.6 million dollars. Nearly seven months after the SEQR process concluded (where the full value of public subsidies were not and should have been revealed), the developers publically revealed their PILOT request to the Ulster County Industrial Development Agency (UCIDA) threatening the board that without their approval of the PILOT, they would not secure the financing that they need and that the City of Kingston was at risk for the project (and the Downtown Revitalization Initiative (DRI) grant) to go away.

According to Rose Woodworth, the CEO of the UCIDA, the ground rules for a deviated PILOT (meaning that it’s not a standard PILOT under the unified tax exemption policy) include the consent of the involved local jurisdictions and in this case, the Kingston Common Council, Ulster County Legislature, and the Kingston City School District’s Board of Education.  She also noted that the UCIDA “…could, if it so determined, to move forward without the consents of the local jurisdictions.”  The process that Woodworth nonchalantly describes reminds us of the worst part of top down culture. It is not meant to be fair or inclusive, but only to provide the illusion of participation. Those “in charge” may override a decision if it runs counter to their desired and in many cases predetermined outcome. 

There are still steps remaining in the process for the Kingstonian PILOT, one of which is an independent, third party cost benefit analysis of the Kingstonians’ financials requested and paid for by Ulster County.  The National Development Council (NDC) was hired only last week as an unbiased third party. The report, that the City of Kingston should have requested last year, should be available any day now. If released to the public (and it should as a taxpayer funded study for a public/private partnership) we will be able to learn its legitimacy based on the materials the NDC has solicited from the developer.

Earlier in October, when Ulster County Executive Pat Ryan announced plans for this study, the Board of Education tabled its discussion on the Kingstonian PILOT until they could review the report. The Ulster County Legislature’s (UCL) Economic Development, Tourism, Housing, Planning & Transit Committee chaired by Legislator Brian Cahill on the other hand went on to pass the Kingstonian PILOT resolution to “…be fair to the developers.” The PILOT resolution appeared next at the Legislature’s Ways and Means Committee chaired by Legislator Lynn Archer, where they wisely chose to table the discussion for the same reasons as the Board of Education.

The next bit may move very fast, with the Ways and Means committee meeting for a second time this month on Tuesday October 20 at 5:00pm. If the Kingstonian PILOT is on their agenda and it is passed out of committee, it goes to the Democratic caucus at 5:45pm and most likely to the floor for a full legislative vote at 7:00pm.

We’ve laid out a timeline of all of the events that have led us to this moment that you can review below. We conclude with “what’s next” for the remaining meetings regarding the Kingstonian PILOT in October.  

The Kingstonian PILOT:
A timeline of recent events

February, 2019  – The Ulster County Industrial Development Corporation listed as an involved agency in SEQR  (Page 2 “Government Approvals”)

When the Kingstonian project’s Environmental Assessment Form (EAF) was submitted to kick off the State Environmental Quality Review (SEQR)  process, the Ulster County IDA was listed as an Involved Agency indicating a PILOT for the project. We had thought that the value of the PILOT would be revealed during the SEQR process (and in hindsight, the public should have been told that without it, according to the developers, the project could not proceed). That information was never made available to the public and in fact, the developers and our city officials went to great lengths to keep it secret.  

March, 2019 – Camoin Associates Study  “We estimate that 100% of the…units would be occupied by households who would be considered ‘net new’ to Ulster County.”

The developer paid for an Economic and Fiscal Impact Analysis study in March of 2019 by Camoin Associates. It’s where all of those perplexing estimates derived from that provided fodder for the developer’s missives. The study was never publicly revealed during SEQR or challenged by our Kingston elected and appointed officials. They went on to pass the PILOT terms unanimously.

October 9, 2019  KingstonCitizens.org requests that the common council uphold its affordable housing mandate and provide constituents with a full accounting of the Kingstonian public funds

Nearing the end of SEQR process, with neither affordable housing or the value of public subsides revealed, KingstonCitizens.org created a petition to nudge our council members to uphold the city’s affordable housing mandate and provide constituents with a full accounting of Kingstonian public funds. “Step up to your fiduciary responsibilities and provide the community with a full accounting of the public subsidies expected by the Kingstonian project. Ensure that all decisions requiring Common Council approval, including discretionary approvals and funding awards, have been identified and included in the SEQR review. “

Although the community succeeded in making the case fo 14 affordable units (after being told for months that “affordable housing wasn’t affordable” for the Kingstonian project), a request to see a full accounting of the public subsidies for the project went unanswered.

February 5, 2020 –  The Ulster County Planning Board: We want transparency here – what the applicant is asking the public to participate in as the project goes forward…in a public/private partnership, you should put everything on the table to fund your garage.” 

During the Ulster County Planning Board’s review of the Kingstonian zoning petition, the board discussed the Kingstonians’ request for public funding and lacking the transparency that is should as a public/private partnership. 

“We’ve seen a lot of positive economic data put out by the applicant. The negative declaration indicates a deviated PILOT by the UCIDA, meaning that it’s not a standard PILOT under the unified tax exemption policy and we don’t know what it will be. No discussion of the PILOT appears as the economic data released to date. We want transparency here – what the applicant is asking the public to participate in as the project goes forward.  The IDA has a matrix, and they are going to propose that the IDA goes outside of the Matrix. In a public/private partnership, you should put everything on the table to fund your garage. The board agreed that it should be included in their comments as it’s in the Neg Dec determination and therefore a part of the SEQR process after discussion.”

July 8, 2020 –  UCIDA: The Kingstonian developers reveal their Payment In Lieu Of Taxes (PILOT) request for the first time telling the county and its residents “No PILOT, no project

“This is the PILOT! If the answer is no, then it all goes away. There is nothing to be built. The DRI goes away, all of that stuff (public benefits) it all goes away…”   – Joseph Bonura, Kingstonian project developer

On July 8, the Kingstonian developers accompanied by Mayor Steve Noble presented the Kingstonian PILOT terms publicly for the very first time at the July UCIDA meeting.  A 25 year, 100% tax exempt PILOT valued at over $30.6 million dollars in exchange for a parking garage. As parking now the centerpiece for the PILOT, we learned that the project needs would result in a net loss of public parking spaces according to the City of Kingston’s zoning code.  

When questioned by board member Faye Storms “…the plans allow for one space per unit. What if families have more than one car?”, the developers responded “…tenants are welcome to use the other spaces in the structure or (park) at the Kingston Plaza.” It was suggested by a member of the IDA that the Kingstonian developers PILOT for a public parking garage in reality half will not be used by the public but by their tenants.

July 28, 2020   KingstonCommon Council Finance and Audit Committee Meeting

On July 28, the Kingston Common Council Finance and Audit Committee met to discuss the Kingstonian PILOT nearly tripping over themselves in support of a $30.6 million dollar PILOT agreement even though there were critical gaps in the information presented (such as a lack in clarity on parking figures or the necessary variances). The resolution passed through committee with lackluster push back anyway.

Some highlights for constituents:

August 4, 2020  Ulster County IDA Governance Committee Meeting

The UCIDA’s recent process change is troubling for several reasons worth analyzing. Through this policy change, the UCIDA has empowered and entrusted itself to unilaterally give away $30 million to wealthy real estate developers during a pandemic irrespective of the judgements of the very elected officials representing the jurisdictions impacted by the subsidy. The IDA itself is an appointed body and, therefore, democratically unaccountable, making their rule changes and subsidy granting power all the more offensive to the principle of procedural fairness. 

REVIEW the agenda from 10/4/20
WATCH the meeting discussion on the policy change
READ our blog post “The Complication of the Ulster County IDA Recent Policy Change and Public Hearing Date on October 1”

August 4, 2020  Kingston Common Council meeting

On August 4, the common council passed the Kingstonian PILOT terms unanimously.

Some highlights for constituents:

September 10   The Village of New Paltz Pass a Position Statement on the Kingstonian PILOT

“PILOT agreements are harmful to local governments and school districts, especially now.” – Mayor Tim Rogers

During the Village of New Paltz board meeting, Mayor Tim Rogers called on the Kingston Common Council, Ulster County Legislature, and the Kingston City School District Board of Education to be mindful of the other neighboring 23 municipalities. “We all contribute and must continue to work together to generate sales tax revenue for our county’s approximately 180,000 residents. Kingston should not unilaterally forfeit property tax revenues via PILOT schemes while municipalities like the Town and Village of New Paltz, as well as high-need places like the Village of Ellenville, are expected to provide more than their fair share of county sales tax.  

Until the State’s Tax Cap Law and County’s Sales Tax Agreement are amended, the Village of New Paltz Board of Trustees declares its opposition to any PILOT agreements that result in a reduction of real property taxes versus full taxation based on a full market value assessment determined by local assessor offices.

Kingston needs and deserves it’s property taxes and should not be padding a developer’s profit margins at the expense of the rest of the county. Trading property tax revenue in exchange for building a poorly conceived parking garage that compromises uptown Kingston’s uniquely desirable pedestrian-focused character is also just short-sighted planning. There are better ways to serve more residents like investing in public transportation to more effectively support local businesses and serve community members across the county.”

September 15, 2020 –  Press Conference: KingstonCitizens.org, Kingston Tenants Union, Mid-Hudson Valley Democratic Socialists of America (DSA), TownOfUlsterCitizens.org and the Kingston News host a press conference event in advance of that evening’s Ulster County Legislative meeting 

A press conference organized by KingstonCitizens.org, Kingston Tenants Union, Mid-Hudson Valley Democratic Socialists of America, TownofUlsterCitizens.org and the Kingston News. Their goal was to raise awareness about the $30.6 million dollar PILOT and to ask the UCL to reject the PILOT with a short film and speaker testimonies that included the Village of New Paltz Mayor Tim Rogers, former City of Kingston councilwoman and Legislator Dr. Lynn Eckert, Kingston Tenants Union Juanita Velazquez-Amador, City of Kingston resident Larissa Shaughnessy and local comedian Duval Culpepper.

September 25, 2020  KingstonCitizens.org calls for an Independent, External Analysis to Review Economic Assumptions of the Kingstonian PILOT Before Approving $30.6m over 25 years

“The City of Kingston missed both of its opportunities to request an independent, external analysis of the Kingstonian developers’ economic assumptions. The first came during the State Environmental Quality Review (SEQR) that ended last December and the second during the recent common council special finance committee meeting in July.  The developers’ revenues which they call ‘trade secrets’ were not disclosed to the public, when the PILOT terms were approved by the full council in August.  The public needs to know the profit margin or the “trade secrets” in order to determine whether to approve the PILOT.” – KingstonCitizens.org

October 1, 2020  UCIDA Holds a Public Hearing on the Kingstonian PILOT

“In contradiction to what Dan Baker said (City of Kingston Assessor), PILOTs do not have a positive impact on school district finances. The school district is subject to tax cap legislation with limits the growth of our tax levy…when the new construction is under a PILOT, the growth factor is zero at the beginning of the agreement and it is not included in the growth factor at the end of the agreement. So the district’s tax levy limit is permanently reduced…the developers published a flyer yesterday that claims that the Kingstonian will yield its school district more than 41 million dollars in new revenue over 50 years and that is categorically wrong. The developers don’t seem to understand school district finances. They don’t seem to understand the impact of a PILOT on school district finances and frankly, the Mayor and the Common Council and perhaps Dan Baker don’t seem to understand the impact of a PILOT on school district finances.” – James Shaughnessy, City of Kingston resident

“I have spoken with several of my fellow legislators and we are all in agreement…we strongly encourage the UCIDA to engage an independent third party firm to undertake a cost-benefit analysis of the Kingstonian project and to present the results of these findings to the various taxing authorities. We are currently relying on the people benefitting from the project to provide the projected costs of the project without validation from an independent third party who has the knowledge of these types of complex endeavors….we all have a fiduciary responsibility to the residents of Ulster County and that an independent review should be undertaken immediately by a firm which routinely does these types of reviews for other IDAs.” – Ulster County Legislator Lynn Archer (District 21)

October 6, 2020  County Executive Pat Ryan calls for an independent cost benefit analysis on the Proposed Kingstonian Pilot Agreement

In response to the ongoing discussions about approval of a PILOT agreement for the Kingstonian project, Ulster County Executive Pat Ryan issued the following statement: 

“Before a decision of this magnitude is made, the public deserves an impartial assessment of the costs and benefits of the project. Therefore, I am calling on the project developers to disclose their financials to an independent evaluator so that we can have a full picture of the project. This level of transparency is critical given the scale and impact of the proposed PILOT agreement.”  
– Ulster County Executive Pat Ryan

October 6, 2020  Ulster County Legislature Economic Development, Tourism, Housing, Planning & Transit Committee passes the Kingstonian PILOT resolution.

“At this juncture, I don’t think we should move on this until we get the results of the third-party review. To vote before receiving the report would be making a decision without all the facts.” – Legislator Lynn Archer

Following County Executive Pat Ryan’s announcement ordering an independent cost benefit analysis for the Kingstonian PILOT, the UCL’s Economic Development, Tourism, Housing, Planning & Transit Committee, chaired by Legislator Brian Cahill (Towns of Ulster/Kingston), passed the Kingstonian PILOT resolution. 

Legislators Cahill and David Donaldson (Chairman representing the City of Kingston) agreed that it would be unfair to the developer to hold up the resolution.

LISTEN starting at 1:23:00 to the discussion of the Kingstonian PILOT.  
VIEW the agenda

October 7, 2020  Kingston City School District Board of Education 

The Board of Education decided that in light of the UCL and County Executive request for an independent third party consultant to review the financials for the Kingstonian PILOT, they would not discuss the resolution until after they had reviewed the report. 

October 13, 2020  Ulster County Legislature Ways and Means Committee

The Ways and Means Committee tabled the Kingstonian PILOT resolution while waiting on the Ulster County Executive’s independent cost benefit analysis by the National Development Council (NDC). The legislators anticipate the study to be complete prior to its next meeting on Tuesday, October 20. 

LISTEN starting at 1:41:18 to the discussion of the Kingstonian PILOT
VIEW the agenda

UP NEXT

Tuesday, October 20, 2020
The UCL will host three important meetings on this evening:

@ 5:00pm: UCL Ways and Means Committee
Public Attendance by Phone (646) 558-8656, Meeting ID: 926 2320 1027

As long as the independent cost benefit analysis is complete with time for legislators to review, the Ulster County Legislature Ways and Means Committee may vote to accept or reject the Kingstonian PILOT terms during this meeting. 

@5:45pm (or immediately following Ways & Means Committee)
Caucus: Democrats 
Public Attendance by Phone (646) 558-8656, Meeting ID: 919 1913 5495

Whether or not the Kingstonian PILOT passes out of the Ways and Means committee, we expect the Democratic caucus will discuss the resolution further. 

IMPORTANT. PLEASE ATTEND

@7:00pm Ulster County Legislative Session  
PUBLIC COMMENT will be restricted to agenda items 
Public Comment: Dial 205-ULSTER-0 or (205) 857-8370 to be connected. Written comments may be submitted to the Clerk via email to: vfab@co.ulster.ny.us 
WATCH Live

We won’t know whether or not the Kingstonian Resolution will be on the agenda until sometime during the day on the 20th, and not knowing what’s on the agenda until the day of the meeting is not in the public’s best interest.

This meeting is very important to attend, for if the Kingstonian PILOT resolution appears on the agenda – it’s going to be the most important evening to use your voice and hold your county legislator (and legislature) accountable. 

We will be providing up-to-date information about the agenda on our FACEBOOK event. 

Thursday, October 21, 2020 @ 9:00am 
Ulster County Industrial Development Agency  
WATCH on YouTube

The Ulster County IDA lists the Kingstonian as a pending project on their 10/21 agenda. 

According to an email that we acquired through a FOIL request, Rose Woodworth, CEO of the UCIDA wrote on September 17, “It is my understanding (glad this is confidential email) that the School board is going to vote yes although they may try to squeeze more money from god knows where. It is also my understanding that the legislature should be a slight (15 vote) YES.  The applicant is looking to get all of this to move ahead very rapidly. They want to be on our October 21 agenda for our approval.  I believe the school board is “supposed to” vote on 10/07 and then the legislature is 10/20. Can we have this back on the October agenda with the assumption that this will be a yes? How does that work?  

Thursday, October 21, 2020 @ 7:00pm  
Kingston Board of Education 
WATCH on YouTube

The Board of Education is scheduled to meet this evening.  We do not know whether they will be voting on the Kingstonian PILOT resolution, although they could be ready by then. 

Highlights from the UCIDA Public Hearing on October 1

There was good news (members of the Ulster County Legislature called for an independent, third party analysis as we did in our BLOG post last week. It’s the only sensible thing to do) as well as courageous and touching testimonies last evening during the Ulster County Industrial Development Agency’s public hearing for the Kingstonian project PILOT.

Here are the highlights. Click on the images to review each individual testimony.

James Shaughnessy, City of Kingston resident

“In contradiction to what Dan Baker said (City of Kingston Assessor), PILOTs do not have a positive impact on school district finances. The school district is subject to tax cap legislation with limits the growth of our tax levy…when the new construction is under a PILOT, the growth factor is zero at the beginning of the agreement and it is not included in the growth factor at the end of the agreement. So the district’s tax levy limit is permanently reduced…the developers published a flyer yesterday that claims that the Kingstonian will yield its school district more than 41 million dollars in new revenue over 50 years and that is categorically wrong. The developers don’t seem to understand school district finances. They don’t seem to understand the impact of a PILOT on school district finances and frankly, the Mayor and the Common Council and perhaps Dan Baker don’t seem to understand the impact of a PILOT on school district finances.”
Ulster County Legislator Lynn Archer (District 21)

“I have spoken with several of my fellow legislators and we are all in agreement…we strongly encourage the UCIDA to engage an independent third party firm to undertake a cost-benefit analysis of the Kingstonian project and to present the results of these findings to the various taxing authorities. We are currently relying on the people benefitting from the project to provide the projected costs of the project without validation from an independent third party who has the knowledge of these types of complex endeavors….we all have a fiduciary responsibility to the residents of Ulster County and that an independent review should be undertaken immediately by a firm which routinely does these types of reviews for other IDAs.”
Justin Orashan, City of Kingston resident

“…my own concern, and the concern of an enlarged amount of community members here is the nuance of (those details) in the context of the given moment that we are in in Kingston…for anyone on this call who is housing secure or owns a home, if you’re not directly connected to the families who are really hurting right now, it’s really hard to understand how people are in pain and how this will not benefit all of our community, and how it will indeed hurt many of our community members.”
City of Kingston Alderman (Ward 3) Rennie Scott Childress.
Hold him accountable, Kingston.


“…a desperately needed parking garage at no cost to the taxpayers. These structures are expensive so the current project is an ingenious solution. A PILOT to support its construction is essential to its success.”
Sarah Wenk, City of Kingston resident

“Our schools can’t wait 25 years for revenue from this project to start trickling in. The developers own materials set out a 50-year timeline that is speculative at best, fantastical at worst. We are in the midst of a crisis now…our schools are facing huge budget cuts. The taxpayers of Ulster County are being asked to subsidize luxury housing for a possible benefit that won’t begin until after most of us are dead.”
Patrick Logan, Attorney
Rodenhausen Chale & Polidoro LLP 
Logan appeared on behalf of several property owners in Uptown, Kingston.


“I want to request that the IDA keep the public hearing open for…at least an additional 30 days to all for adequate public comment. Several weeks ago my office submitted a FOIL request for all of the IDA’s records relating to the PILOT application. We did not receive a response until approximately 4pm yesterday…my clients are in the process of hiring a third party financial analyst to review the information….to submit this analysis.”
Village of New Paltz Mayor Tim Rogers
(read by City of Kingston resident Jess Mullen)


“On September 15, 2020, the Kingstonian developers published the “Fiction v. Fact” document on their website which stated that “Developers and City officials are comfortable that the increased parking is adequate for peak demand and any excess employee and hotel parking can be accommodated in the adjacent plaza….Please review City of Kingston zoning code §405-34 (J.) “Parking space ratios.” Reading the code and using some simple arithmetic shows how the Kingstonian requires approximately 345 parking spaces (hotel: 34, apartments: 271, commercial space: 40). The developers also stated in their “Fiction v. Fact” document that “without the garage component, there would be no PILOT request as one would not be needed. The PILOT starts and stops with the costs to build, operate, and maintain the parking garage…If the project is only adding 75 (420 minus 345) public parking spaces — not even the 200 that the city asked for in their 2016 RFQ — the UCIDA should take an extra hard look at whether to grant a PILOT to build 75 parking spaces. Additionally, plans include charging users 3x more for parking ($1.50 per hour) than the city charged just a few years ago.”
Ilona Ross, Resident of Olive

“Joseph Bonura is a recipient of two 99-year PILOTS in the City of Poughkeepsie that will deprive that city of billions of dollars. It ought to shock and conscience of any observer that he has dared to come to Kingston and ask for a PILOT.”

The Complication of the Ulster County IDA Recent Policy Change and Public Hearing Date on October 1.

There has been some confusion about the process for the proposed Kingstonian deviated PILOT, regarding whether or not the agencies (the Common Council, City of Kingston School District Board of Education (KSCD), and Ulster County Legislature (UCL)) must all agree on the PILOT terms in order for it to proceed. The source of that confusion stems from an expedient decision by the Ulster County Industrial Development Agency (UCIDA) to change its rules in ways that benefit the Kingstonian.  

Rose Woodworth, CEO of the UCIDA clarified the question about the process and the Kingstonian deviated PILOT in a recent email: 

  1. In general, the UCIDA has the power to grant PILOT Agreements (and real property tax abatements).
  2. In connection with the granting of tax abatements, the UCIDA has adopted a Uniform Tax Exemption Policy (the “UTEP”).  Under the UTEP, the UCIDA may grant certain levels of real property tax abatements to project applicants.
  3. As has been described both in the IDA Application and in media reports regarding the Kingstonian Project, the real property tax abatement being requested by the project applicant is a deviation from the normal real property tax abatement provided in the UTEP.
  4. As provided in the UTEP, in cases of deviations the UCIDA is subject to the following requirements:

(D) Review by Agency with Affected Tax Jurisdictions. Before the Agency shall enter into a PILOT Agreement that deviates from the policy set forth herein, the Agency shall (1) notify each affected Tax Jurisdiction in accordance with Section 8(A)(2) hereof, and (2) attempt to obtain the written consent of all the affected Tax Jurisdictions to such deviation. In the event that the Agency is not able to obtain the consents of all the affected Tax Jurisdictions to such deviation, the Agency may enter into such a PILOT Agreement that deviates from the policy set forth herein without the consents of such affected Tax Jurisdictions. The provisions of this Section 8(D) shall not apply in situations where the Agency holds title to property for its own account.

As noted in the above excerpt from the UTEP, the Agency is obligated to get the local approvals regarding the PILOT deviation.  And, as noted in the excerpted language, the UCIDA could, if it is so determined, move forward without the consents of the local jurisdictions.

In other words, even if the three impacted agencies –Kingston’s Common Council, KCSD and UCL — don’t all agree to support the PILOT and its substantial tax breaks for the developer, the UCIDA may proceed to approve this anomalous PILOT request on their own. In short, the UCIDA – an appointed and democratically unaccountable body – may make a lone decision to approve the PILOT without the consent of all of the impacted tax jurisdictions like the School Board. 

Back in July, the City of Kingston and Ulster County Industrial Development Agency received a letter from Victoria L. Polidoro, Law Offices of Rodenhausen Chale & Polidoro LLP.  Polidoro represents several property owners in Uptown, Kingston. The Polidoro letter informed the IDA that the law did not authorize them to grant the PILOT application.  As a threshold matter the IDA does not have authority to consider or grant the Application for the Project which includes residential housing units. The IDA’s Housing Projects Policy, which was reaffirmed on January 8, 2020, only allows IDA financing in limited circumstances. It provides that:

A. The Agency will only consider the granting of any “financial assistance” (as defined under the Act) for following projects that provide housing:

  1. (1)  a project that satisfies the definition of a continuing care retirement community project under Section 859-b of the Act; or
  2. (2)  a project by an industrial, manufacturing, warehousing, commercial,research and recreation facility (as defined in the Act) that provides workforce housing for its employees.

With new information from the Polidoro letter, the IDA appeared to hastily approve a revised policy change a month later on August 12 authorizing their agency to grant tax breaks to “any housing project, or any mixed-use project that includes a housing or residential component, that has received the prior approval from the governing board of Ulster County and each town, village, city and school district in which the housing project is located.”

The UCIDA’s recent process change is troubling for several reasons worth analyzing. Through this policy change, the UCIDA has empowered and entrusted itself to unilaterally give away $30 million to wealthy real estate developers during a pandemic irrespective of the judgements of the very elected officials representing the jurisdictions impacted by the subsidy. The IDA itself is an appointed body and, therefore, democratically unaccountable, making their rule changes and subsidy granting power all the more offensive to the principle of procedural fairness. The damage done to due process by public officials who pledge to uphold the public interests is deeply corrosive, undermining a sense of trust at the core of good local government. We should demand more from those who represent us. At a minimum, citizens should expect that governing rules are clear, consistent and fair to all parties. Any changes to procedure should never benefit one party over another in the middle of a highly contentious process.

To make matters worse, the UCIDA has scheduled their required public hearing on the proposed Kingstonian PILOT, on October 1st, prior to the KCSD vote, which may take place on October 7 (or the 21). The UCIDA’s public hearing is also scheduled ahead of the UCL vote on October 20.  By scheduling the public hearing before the other agencies (KCSD and UCL), the UCIDA prevents concerned taxpayers from addressing their members should either of the two remaining agencies reject the PILOT agreement for the Kingstonian.  The UCIDA members have effectively foreclosed public comment following the votes of those other affected agencies, precluding an opportunity for the public to question them and advocate for fairness. 

Take Action

Thursday, October 1st at 7:00pm
The Ulster County IDA public hearing on the Kingstonian PILOT will occur remotely. Please LIKE our facebook event to learn more about how you can participate. 

The Kingstonian Project PILOT Needs Independent, External Analysis to Review Economic Assumptions Before Approving $30.6m over 25 years

The Kingstonian is a proposed $58 million dollar project. It promises 129 high-end units (to date, rents will range from $1,500 – $2,850), 14 affordable units (with Area Median Income (AMI) based on Ulster County, nearly ⅓ higher than the City of Kingston), a 32-room luxury boutique hotel (across from the Senate Garage which hosts “…dozens and dozens and dozens of wedding events each year”), 9,000 square feet of retail space and a 420 parking space complex.

The developer is asking for a payment in lieu of taxes (PILOT) agreement where they will pay nominal taxes for 25 years; a subsidy worth approximately $30.6M, in exchange for a temperature controlled parking garage that will primarily serve its high end tenants and luxury boutique hotel guests.

Over and over again, the Mayor of Kingston, members of the Common Council and the developers tell us that Kingston needs this parking garage and that, with a PILOT, it could be built at “no cost to taxpayers.”  If a PILOT allows a developer to defer their real mortgage, property, school and sales tax, how does their project come at no cost? 

The City of Kingston missed both of its opportunities to request an independent, external analysis of the Kingstonian developers’ economic assumptions. The first came during the State Environmental Quality Review (SEQR) that ended last December and the second during the recent common council special finance committee meeting in July.  The developers’ revenues which they call ‘trade secrets’ were not disclosed to the public, when the PILOT terms were approved by the full council in August.  The public needs to know the profit margin or the “trade secrets” in order to determine whether to approve the PILOT.  

With two agencies still left to vote on the council’s PILOT terms, the developer is making another attempt to persuade members of the Board of Education (BOE) and Ulster County Legislature (UCL) to support the PILOT, with a public action form letter crafted without any real substance.  “The PILOT will provide tax relief and public benefit at no cost to taxpayers.” There it is again.  “No cost to taxpayers.” The developer also claims that “…they have worked with Kingston City officials and the IDA Board to ensure that the dollar value of the public benefits of the Kingstonian outweigh the PILOT at zero cost to taxpayers.” But without an independent, external analysis to review their economic assumptions, the tax paying residents of the City of Kingston and Ulster County will never know. 

In their letter, the developer claims “…that the benefits of the project include twice the public parking, 129 market rate apartments, 14 affordable apartments, 30 hotel rooms (when it is actually 32), an outdoor public pedestrian plaza/gathering space, long-desired public restrooms, 300 + new consumers to the marketplace offering immediate relief to the business district and generating much needed sales, occupancy, and property tax revenue, and an estimated 153 new jobs.” But the developer still isn’t able to pin down the number of parking spots they need for this project, even though the City of Kingston’s zoning code says that nearly 313 of their 420 newly created parking spots will be required to serve their high-end apartment tenants and luxury boutique hotel guests leaving us with approximately 107 public parking spots, fewer than the 144 parking spots that we currently have now.  Even with a waiver to allow them to provide less, there will now be an influx of people –  tenants, hotel clients, uptown businesses and residents all vying for parking.  They assert that the overflow can park across Schwenk Drive if their garage is full.  So why is the public being asked to fund a parking garage when they may be losing parking spaces, charged higher fees and possibly not able to find a spot to park in the temperature controlled lot anyway.

As for affordable housing, the 14-units that various politicians claim credit for was due to the hard work of advocates that pressed the matter and won. The developer ended up making the concession but expanded the size of their complex, making their original 129-unit project even larger, with a whopping 143-units in the center of Kingston’s historic uptown.  As reported earlier, it appears that the developers are following the Area Median Income (AMI) not for the City of Kingston ($48,186) but for all of Ulster County ($69,539) that could make those starting rents nearly ⅓ higher.  

As for jobs, they promised 40 full time positions in their application. However, 84% of them were based on a single person’s salary, at $20.73 per hour. This is insufficient income for anyone raising a child, and certainly not enough to rent a one-bedroom apartment in the Kingstonian (or nearly anywhere else in Kingston.) 

The developer claims that “…this project comes at an opportune time when our local economy is in need of job creation, both affordable and market rate housing, and sales tax revenue.  The project also creates an immediate economic boost from the construction phase and revenue from the new taxes that will be generated.”  But we know that the PILOT request is coming at the worst possible time, in the midst of a global pandemic, and when our local, county, and state economic futures are unclear.  In early summer, the City of Kingston, in preparation for a hit to their budget, began furloughing and cutting some of its workers. Tax revenue for Ulster County is unknown and the state may hold back state aid for the City of Kingston School District by 20%, while residents’ school tax bills have increased.  Our Mayor and Common Council endorsed the loss of revenue at one of the worst economic moments in the City’s history without requesting an independent, external analysis to review the developers economic assumptions to understand whether or not the immediate or long term benefits are worth the PILOT investment.

The developer says that “…this project was initiated by the City of Kingston, and is a true partnership between the City, School, County, State and the citizens of our community and that without this partnership the project is not fiscally feasible and the taxpayers will lose the multitude of community benefits and added revenues it brings.”  But in our opinion, a true partnership includes a developer who stands to make a windfall in the City of Kingston paying their fair share of taxes.  Some community members have asked if it’s even wise for a project to proceed when a project like this isn’t ‘fiscally feasible’ without a $30.6 million dollar PILOT.  The proclaimed community benefits are a temperature controlled parking garage (that the developer needs more than we do to serve their high-end apartment tenants and luxury boutique hotel guests), a couple of public bathrooms, a pedestrian plaza with a water feature, an internship to train their future $15.00 per hour wage workers and a walkway over Schwenk Drive. Is that the way we want to invest our hard earned, finite tax dollars?

As a public/private partnership, we think our community deserves more information before it decides on the $30.6 million dollar PILOT. We encourage our elected officials at the BOE and UCL to be responsible and request that an independent, external analysis is performed to review the Kingstonian’s economic assumptions to be reviewed in turn by all tax paying residents living in the City of Kingston and Ulster County. 

RESOURCES

READ: The Kingstonian Project will require 343.5 parking spaces per Kingston’s zoning code

CALL TO ACTION:

We encourage all community members to draft their own letters to decision makers of the Kingstonian PILOT asking for an independent, external analysis of the Kingstonian’s economic assumptions and the feasibility of a $30.6 million dollar PILOT.

City of Kingston Board of Education

jshaughnessy@kingstoncityschools.org
sspicer@kingstoncityschools.org
ccollins@kingstoncityschools.org
hlamb@kingstoncityschools.org
plowe@kingstoncityschools.org
rjacobowitz@kingstoncityschools.org jmichael@kingstoncityschools.org
sjordan@kingstoncityschools.org
nscherer@kingstoncityschools.org ppadalino@kingstoncityschools.org

Ulster County Legislature and County Executive

Chair@co.ulster.ny.us
vfab@co.ulster.ny.us
Mary.Wawro@co.ulster.ny.us
Albert.Bruno@co.ulster.ny.us
Dean.Fabiano@co.ulster.ny.us
Brian.Cahill@co.ulster.ny.us
Abe.Uchitelle@co.ulster.ny.us
Peter.Criswell@co.ulster.ny.us
Laura.Petit@co.ulster.ny.us
HLitts3@aol.com
MaryBeth.Maio@co.ulster.ny.us
Thomas.Corcoran@co.ulster.ny.us
Kevin.Roberts@co.ulster.ny.us
Ken.Ronk@co.ulster.ny.us
Craig.Lopez@co.ulster.ny.us
John.Gavaris@co.ulster.ny.us
Tracey.Bartels@co.ulster.ny.us
James.Delaune@co.ulster.ny.us
Heidi.Haynes@co.ulster.ny.us
MannaJo.Greene@co.ulster.ny.us
Eve.Walter@co.ulster.ny.us
Lynn.Archer@co.ulster.ny.us
John.Parete@co.ulster.ny.us
LegislatorHeppner@gmail.com
exec@co.ulster.ny.us

JOIN US. Please ‘like’ our facebook events to keep up-to-date on Kingstonian PILOT public hearing and potential votes in October. 

Thursday, 10/1/20 @ 7:00pm   FACEBOOK EVENT
The Ulster County Industrial Development Agency  (UCIDA) Kingstonian PILOT Public Hearing 

Wednesday, 10/7/20 @ 7:00pm  FACEBOOK EVENT
The City of Kingston Board of Education may vote on the Kingstonian PILOT. 

Tuesday, 10/20/20 @ 7:00pm  FACEBOOK EVENT
The Ulster County Legislature may vote on the Kingstonian PILOT. 

Missed the Kingstonian PILOT press conference event? Here’s a recap and next steps

WATCH:
“Say NO to the Kingstonian PILOT: A History of the project” and Press Conference

LIKE
Our Facebook Event and get up to date information on the October Ulster County Legislature Meeting

On September 15th at 5:30pm, KingstonCitizens.org, Kingston Tenants Union, Mid-Hudson Valley Democratic Socialists of America (DSA), TownOfUlsterCitizens.org and the Kingston News hosted a press conference event in advance of that evening’s Ulster County Legislative meeting. It was our goal to raise awareness about a $30.6 million dollar tax incentive for a development project which proposes to build high-end housing and a luxury boutique hotel in exchange for a parking garage in the City of Kingston’s historic Stockade District.   

READ:  The Ten Things we Know about the Kingstonian PILOT

To start, the Kingston Tenants Union debuted their short film “Say NO to the Kingstonian PILOT: A History of the Project“ in an effort to help the public connect the dots in a four year saga. “This is a case study of steamrolled gentrification and suppression of marginalized voices in the process.” said Village of New Paltz Deputy Mayor KT Tobin after watching the film.

Speaker testimonies followed the film from the Village of New Paltz Mayor Tim Rogers, former City of Kingston councilwoman and Legislator Dr. Lynn Eckert, Kingston Tenants Union Juanita Velazquez-Amador, City of Kingston resident Larissa Shaughnessy and local comedian Duval Culpepper, all of whom encouraged the Ulster County Legislature and Board of Education to say NO to the Kingstonian deviated Payment-in-lieu-of-taxes (PILOT).

In scheduling the press conference on this date, it was our goal to help coordinate as many members of the public to speak during open public comment to the full 23 member Ulster County Legislative body during their remote meeting that evening.

What happened to public comment during the Ulster County Legislature on Wednesday?

Public comment during an open meeting provides community members the opportunity to exercise their First Amendment rights. The vitality of government is measured by the level of public interest and involvement, and community members are empowered when they make their views known. 

Prior to COVID-19, the public would arrive at the legislative chambers and sign up to speak on any item, whether it was on the agenda or not. On contentious issues you could predict an overflow of the public spilling out into the hallway in order to have their two minute opportunity to speak to their elected officials in a public setting. 

Since COVID-19, the Ulster County Legislature has been meeting remotely.  To our surprise on Tuesday evening, with nearly 62 people waiting in a queue to speak on the PILOT for the Kingstonian, the clerk reminded the legislature of their new policy initiated in April which limits public comment to agenda items. The decision to enforce the public speaking rule was made by Chairman David Donaldson (D/District 6, City of Kingston) who is known to be in favor of the Kingstonian PILOT. 

Unfortunately, the new public comment policy has not been clearly or consistently communicated to Ulster County residents. Although it is within the Legislature’s purview to set those speaking parameters (unless the public challenges it), we don’t recall the clerk making an announcement of the new policy at the start of past meetings, nor are we able to locate where they amended their presentation slide regarding the call-in number or, describing their procedure on the website legislative calendar where the public could intuitively find information about public meetings.

Even one of the legislators at the meeting spoke out about the Chair’s decision to reinforce the April rule change on the very night when community members had carved out time to speak on a contentious topic before the legislature. “I feel obligated to state on the record that we have many times heard people speak on items not on the agenda…” said Legislator Abe Uchitelle (D/District 5, City of Kingston).

The challenges in following the Kingstonian PILOT process. 

Like the number of public parking spaces the Kingstonian project has offered, the rules and governing procedures around the Kingstonian process are constantly changing to accommodate the developers interests. Rarely has any level of government – the city or the county – provided good lead time or clear instructions that would allow the public time for speaking preparation.  In fact, several weeks back, we received information that the Ulster County Legislature’s Chairman Donaldson accepted a late communication on the Kingstonian PILOT (that came in after the August 21st deadline).  In an effort to enable the legislation contained in the late communication to be considered at the September legislative meeting, long-standing rules would have had to be somehow interpreted or altered for an accommodation to be made.  That plan never came to fruition yet it demonstrates the unfair terrain on which those opposed to the Kingstonian PILOT must operate. 

During the September legislative meeting, the clerk announced to the public that they anticipate the Kingstonian PILOT resolution to come in front of the legislature in October. Yet the public will only be able to confirm that following the Laws and Rules Committee, which occurs the evening prior to the full legislative meeting. The agenda will only be made available the morning of October 20. If the Kingstonian PILOT resolution is listed as an agenda item, then the big night would be Tuesday, October 20 at 7:00pm.  If so, we hope that not only will the public come out in force like they did this month, but the Ulster County Legislature will continue with remote meetings in order to accommodate every single voice.  If Chairman Donaldson decides to make October the month that the legislature returns to legislative chambers, the result would limit the number of residents who are able to attend due to current Covid-19 restrictions on public gatherings.

TAKE ACTION

WATCH the film and recorded testimonies to learn about the history of the Kingstonian project and listen to a range of opinions from people who courageously spoke during the press conference.

READ “The Ten things that we know about the Kingstonian PILOT” and spend some time asking more questions in order to prepare your testimony for the next public comment session at the Ulster County Legislature.

CLICK HERE TO SEND A LETTER  to all of the representatives in the Ulster County Legislature and ask them to assure that their October 20 meeting (or whenever they are scheduled to discuss and to vote on the Kingstonian PILOT), remain remote to accommodate all Ulster County residents during COVID-19’s restrictions on public gatherings and, to vote NO on the Kingstonian PILOT.

Census 2020 Self Response Rate low in Kingston. Here’s how you can help before 9/30 and why we need you.

By Rebecca Martin

It’s been ten years since the last Census Population Count. Locally, while in the midst of COVID and deep unrest, 2020 presents us with another challenge to assure that community members take the census.

TAKE THE CENSUS NOW

Why is the census important? “The census population count determines how many representatives each state will have in Congress for the next 10 years and how much federal funding communities will receive for roads, schools, housing and social programs.” For Kingston, beyond critical infrastructure needs, it means important funding that flows through the Ulster County and Community Development Block Grant (CDBG) in support of programs for our community and those in need such as our Library, the Everett Hodge Community Center, the Boys and Girls Club of Kingston, the Center for Creative Education, the YMCA and others. What might not be well known, is that every person in our community that takes the census helps to provide a formula that equates to $1000s of dollars per person and that is allocated to support these important initiatives and programs.

Some ignore the census request concerned with records not being secure. But our constitution requires a census and protects all of the critical information collected as confidential, where it is not allowed to be used for law enforcement or other government agencies of concern.

Some say that the current president and his administration is using methods to deliberately diminish count and particularly in Democratic areas like the City of Kingston. It’s another reason why in Kingston, responding to the census must be counted as one of our important civic duties.

As of September 8, the Self Response Rate of Kingston community members taking the census is down from 2010 by a little over 11%, and that’s not surprising given the climate in our local community. Although there is a push to extend the census deadline, we have until September 30 to get as many of our community members as we can to take the census, and KingstonCitizens.org wants to help.

TAKE THE CENSUS NOW

WHAT CAN YOU DO? Take the census today!

“PILOT agreements are harmful to local governments and school districts, especially now.” The Village of New Paltz Pass a Position Statement on the Kingstonian PILOT.

At tonight’s Village of New Paltz Joint Board meeting, the village board passed passed a position statement on Housing and Payment-in-lieu-of-taxes (PILOTS).

The Position Statement was split into two pieces. “First, a comment on the formula as to why PILOTs are problematic because of the NYS tax cap law, and a housing project like this does a great job at illustrating just how problematic the way the law is currently written.” said Village of New Paltz Mayor Tim Rogers. ” It’s such a problem that over the last several years, there have been many bills to try to fix it. Several years ago, it was passed by the Senate and Assembly, but was vetoed by the Governor Cuomo. It’s a formula problem and harms the taxing authorities, and is why a municipality would never agree to a PILOT…when you construct new housing, you are going to end up with additional responsibility and expenses as a taxing authority, especially if you are a school district.”

Mayor Rogers went on to explain, “If you build 100 new units that have “x” number of bedrooms, you’ll have “y” K-12 age children. It’s just math, it’s what happens when you add units to any community. The way sales tax law is currently formulated, you end up with new units and the schools district has no way to increase their budget to accommodate the additional demand on their school district. It’s a fundamental flaw.”

Deputy Mayor KT Tobin agreed. “Unless it’s for affordable housing, I don’t think PILOTs are good public policy. I thought five years ago that they’d be dead by now, because promises for jobs did not materialize. The lack of clawbacks and systematic accountability mechanisms has well demonstrated the failures of PILOTS. And now that we’re in COVID – a pandemic – I can’t even wrap my head around asking for buy-in from property tax payers right now given the cuts we are looking at and the fiscal cliffs that school districts and municipalities are facing. It appears to be a combination of denial and lack of awareness that this is not the right time for this and my municipality will be impacted as well.”  

During the meeting, Ulster County Legislator Eve Walter (District No. 20 – Town of New Paltz, Village of New Paltz) confirmed that “…typically the Ulster County Industrial Development Agency (UCIDA) has the capacity to approve or disapprove PILOTs on their own unless the entity is seeking a deviated pilot. In this case, the Kingstonian developers ARE seeking a deviated PILOT and that means that all three agencies would need to approve the terms (the City of Kingston, Board of Education and Ulster County Legislature). If any one of them do not, it would be a stop.” Legislator Walters later added, “This is about equity and taxes. This is about being one community.”

Read more…

The Ten Things We Know about the Kingstonian PILOT and Remote Press Conference on 9/15/20

“Say NO to the Kingstonian PILOT” is a remote press conference on Tuesday, September 15th at 5:30pm.  Get ready and CLICK ON OUR VIDEO LINK to join us and to learn what you can do.

Or, visit our FACEBOOK EVENT for up-to-date information on the Kingstonian PILOT process.

The Kingstonian is a proposed $50M, 143-unit luxury housing complex with a 32 room boutique hotel, 8,000 square feet of retail space and a 420 parking space complex. It also includes a walking bridge to the Herzog’s Plaza, which is owned by one of the developers. In exchange for closing a public street to create a “pedestrian plaza”, the developer promises a couple of public toilets. 

The developer is asking for a payment in lieu of taxes (PILOT) agreement where they pay no taxes for 25 years; a subsidy worth approximately $30.6M.

The Kingston Common Council unanimously approved the PILOT’s general terms. Although the Council may believe that the tax-free deal for luxury apartments is a good bargain for Kingston, it is only one of the three involved agencies that would be impacted by the PILOT and have to agree to the terms in order for the PILOT to go through. The other agencies include the Ulster County Legislature (UCL) and the Kingston City School District Board of Education (BOE).

A tax-free deal for luxury apartments in Kingston would be felt beyond the Kingston city boundary. Municipalities that pay Kingston City School taxes include the Towns of Esopus, Hurley, Marbletown, New Paltz, Kingston, Rosendale, Saugerties, Ulster and Woodstock.  As a result, it’s not just Kingston that will be left with higher school taxes. PILOTs result in less tax revenue, which requires everyone else to make up the difference for a developer that stands to make a windfall in profits with a $30.6 million subsidy courtesy of the City of Kingston’s Common Council. 

At a time of financial crisis when the coronavirus pandemic has led to cuts in city services and jobs, loss of tax revenue on this scale could be simply devastating. The proposed Kingstonian PILOT deal could potentially harm the least well off in the city as well as hardworking taxpayers who already struggle to pay high school and property taxes while wealthy real estate developers get a free pass. For county legislators advocating for social justice in housing, services for the poor, and children in need, the PILOT should be particularly worrisome. While not all PILOTs are exploitive, they must be balanced against the potential gains an investor or industry may bring to the area.

There is still an opportunity to stop the giveaway that Kingston’s Common Council shamelessly endorsed. CLICK ON THIS LINK to send a letter to the Ulster County Legislature and say no to developer welfare and tell the Kingston City School Board that education is a public good. Everyone should pay their fair share of school taxes, including wealthy real estate developers.

The Ten Things We Know about
the Kingstonian PILOT

Read more…

Can Ulster County Commissioners run for Party Chair?

By Rebecca Martin

In early March of 2020, we sought out Ashley Dittus, Democratic Commissioner at Ulster County Board of Elections and Roger Rascoe, Chair of the Ulster County Republican Committee, to ask a series of questions regarding the process of running for chair of the Ulster County Democratic and Republican parties. 

This was of particular interest after learning back then that Ashley planned to run for the Democratic county chair seat while holding the position of Commissioner for the Board of Elections. It struck me as being potentially riddled with conflicts.

Now in September and with the upcoming county party leadership organizational meetings, a conflict emerged between the old and the new.  Larissa Shaughnessy, chair of the Ulster County Young Democrats, put out a public statement, “…a spreadsheet document owned by Ashley (Dittus) was shared with our sitting Congressmember’s campaign staff and labels several Young Democrat members whom she suspects of not supporting her candidacy for Chair with the comments “kill” and “maim”.

Following the discovery, Ashley was asked by many influential party members to step down from her bid to lead the Ulster County Democratic party and instead, to continue to focus her efforts as Commissioner for the Board of Elections.

In a letter written by Pat Courtney Strong, a member of the County Democratic Committee who has run for both State Senate (2018) and Ulster County Executive (2019), she outlined many shared concerns. 

“When I ran for the State Senate in 2018, I had the opportunity to meet many terrific, hard-working Democrats from the five-county area that comprises the 46th Senate District…In one of the counties, the Democratic Elections Commissioner was also the Democratic Party chairperson….it was not a good situation—both in “optics” and reality. It makes the party leadership appear to be a small, insular group that doesn’t welcome new voices. And it was plain to see that there is an inherent conflict in one person holding the two positions. It means that this individual has the responsibility of recruiting candidates—encouraging people she/he believes can win—as well as disseminating information to all candidates in a fair manner. It means that, as a county employee, the commissioner presents a budget to the county legislature—and then holds influence over those same people as party chair when they are candidates. These are just two of many conflicts that can arise…”

On Thursday of last week, Ashley withdrew from the race.

Read more…

Another Lawsuit and a Formal Complaint Against City of Kingston Decision-making and the Kingstonian Project Process

Stockade Historic District Building Footprints Comparison

The above image comparison courtesy of Marissa Marvelli’s illustrated guide for understanding architectural appropriateness in the Stockade Historic District

On Friday August 21, another Article 78 and a Verified Complaint was filed by a consortium of Uptown business entities against the City of Kingston, Kingstonian Developers and state agencies.

The Article 78 suit filed against the City of Kingston, the Kingstonian developers, the New York State Office of Parks, Recreation & Historic Preservation (OPRHP) and Empire State Development Corporation was to annul OPRHP’s February 14, 2020 decision (see below) determining that the proposed mixed use development (incorporating a 420 car garage, 143 apartments, 32 room boutique hotel, and 9,000 square foot retail/restaurant space, pedestrian plaza and walking bridge) located at the intersection of Fair Street and North Front Street, within the National Register-listed Kingston Stockade Historic District (KSHD), along with the rezoning of approximately 0.313-acres of property to accommodate the same, would not have any adverse impacts on the Kingston Stockade Historic District.

As we reported back in February, “…without any significant changes proposed by the developers, the New York State Historic Preservation Office (SHPO) chose to unsee the adverse impacts that it had identified in September 2019 in the course of its review of the Kingstonian. The only rational explanation for this unexpected and illogical about-face is that this is the result of political pressure exerted by the Empire State Development Corporation (ESDC) and by extension, Governor Andrew Cuomo. 

According to a February 14 letter to the ESDC from John Bonafide, Director of the Technical Division Bureau at SHPO, “After considering the material presented at our meeting and the subsequently submitted information, we have found that the evolution of the proposal has addressed many of the open preservation issues raised by this office.” However, the only change that has been made since his office last reviewed the project in September is that the Schwenk Drive portion of the development grew another story. Impacts that were identified in the agency’s September 19 letter, such as the project’s size, its monolithic scale, and its eradication of Fair Street Extension, have not been mitigated in the least. 

SHPO’s comments on the Kingstonian are part of a consultation mandated by Section 14.09 of the New York Parks, Recreation and Historic Preservation Law. It is required for projects that are funded, licensed or approved by state or federal agencies. The Kingstonian is set to receive $3 million in funding from the ESDC. The majority of the project site lies within the National Register-listed Stockade Historic District.”

READ: “The State Preservation Office does about-face for Kingstonian project amid political pressure”

At the same time, a verified complaint against the Kingston Common Council, Mayor of Kingston and the developers was also filed, declaring that a portion of the proposed Kingstonian project property owned by the City of Kingston is parkland and subject to the public trust doctrine. According to the complaint, it was illegal for city to sell or alienate the park without prior authorization from the State in the form of legislation enacted by the New York State Legislature and approved by the Governor of New York State and completion of SEQRA on the alienation.

The complaint also states that the Mayor’s execution of two different Memorandum of Understanding’s (MOU) dated 1/10/17 and 6/19/17 should be null and void as neither were done with the consent of the Kingston Common Council.

In the June MOU, Wright Architects oddly assigned all of its right, title and interests to JM Development Group for what appears to be a $50,000 sum.

READ the January 10 and June 19 of 2017 Memorandum of Understandings.

A public hearing on promising affordable housing project on Golden Hill site

A public hearing will be held at 6:20pm tonight (Tuesday, August 11, 2020) regarding a promising proposal called the Golden Hill Housing Development. Dial (646) 558-8656, Meeting ID: 982 8635 1219

“In Resolution No. 179 of May 19, 2020, the County Legislature requested the County Executive to inventory existing County-owned lands that no longer serve a county purpose to ascertain if they are suitable to meet the County’s housing goals. Responsive to that request, the Executive identified the site of the former county jail on Golden Hill as a suitable site and released a request for qualifications to solicit and gauge interest from developers and concept plans for development of housing on the site. This memo reviews the project goals, timeline, and process for discussion with the County Legislature.”

A SUMMARY is available for public review. For more information or if you have any questions, contact Ulster County Deputy County Executive Evelyn Wright at ewri@co.ulster.ny.us or call 845/340-3633.

The Kingstonain tax-free deal for luxury apartments would pay no school tax

Editorial Board

This week, the Kingston Common Council unanimously approved general terms for a $30.6 million dollar deviated payment in lieu of taxes (PILOT) for the Kingstonian project. Although the Kingston Common Council may believe that the tax-free deal for luxury apartments is a good deal for Kingston, it is only one of the three involved agencies that will need to approve the PILOT before it can be implemented by the Ulster County Industrial Development Corporation (UCIDA).  The agencies include the Ulster County Legislature (UCL) and the Board of Education (BOE) for the Kingston City School District (KCSD). We anticipate the two remaining agencies will hold public discussions and a vote sometime in September and October. Write and call your representatives and ask when the PILOT is scheduled to be on their agenda and to explain in advance (and in writing) the impacts of a tax-free deal for luxury housing will have on your school taxes.

A wealthy developer will pay no school tax for 25 years?

What didn’t get a whole lot of traction during the Kingston council debate was the fact that the Kingstonian developer will pay nearly no school tax to the KCSD, and that impact will be felt by every municipality that pays into the school tax base.

In their PILOT application, the developers say that they anticipate minimal impact on the Kingston City School District because a similar project of theirs’ in Poughkeepsie has produced no school-aged residents. To further woo decision-makers, the developers are offering a $5,000 per year (for ten years) scholarship fund through the Community Foundation for the KCSD to use at their discretion. This translates into $50,000 over the course of 10 years in exchange for no school taxes for 25 years.  Another pittance in comparison to their school tax without a PILOT is a $40,000 payment that will be apportioned to the city, county and school district. If 60% of the total tax burden – or approximately $24,000 a year – would be paid to the school district, all it would take is 1 1/2 new students to wipe that out.

What will it cost us?

So far, the developers characterize their financial information as “trade secrets” and have aggressively sought to shield that financial information from the public. Without this important information, the public does not know what portion of the $57,885,000 project is taxable and therefore, has no ability to calculate cost or potential benefits to taxpayers over 25 years. 

Though at a recent special Kingston Common Council Finance and Audit Committee meeting, City of Kingston Assessor Dan Baker said that if the Kingstonian project were built today, the full property assessed value would be $19,000,000.  Based on the 2019-2020 non-homestead tax rate, the school tax calculation of $30.10 per $1000, the school tax bill alone would be approximately $571,900 per year.  Assuming the assessed value fluctuates and increases based on inflation and cost of living from year to year, the uncollected school taxes could end up being a staggering $18 million dollars over the life of the 25 year PILOT

A tax-free deal for luxury apartments in Kingston will be felt beyond the Kingston city boundary. PILOTs result in less taxable value which requires everyone else to make up the difference. Municipalities that pay Kingston City School taxes include the Towns of Esopus, Hurley, Marbletown, New Paltz, Kingston, Rosendale, Saugerties, Ulster and Woodstock.  

Read more…

Next Steps: Kingstonian PILOT and the City of Kingston Common Council

By Rebecca Martin

Last night, the Kingstonian deviated PILOT (payment in lieu of taxes) agreement passed through the Kingston Common Council Finance and Audit committee by a 3-1 vote.

Yes: Tony Davis (Ward 6); Rennie Scott-Childress (Ward 3) and Doug Koop (Ward 2). 

No: Michelle Hirsch (Ward 9)

Recused: Steve Schabott (Ward 8). A recusal is an automatic ‘no’ vote.

There’s been some chatter about whether or not a recusal (not to be confused with an abstention) equals a “no” vote, and indeed it does. Here’s an example: During the proposed shooting range project vote in 2016, an alderman had to recuse himself because of a conflict resulting in a “no” vote. “James Noble said a recusal by Davis would be recorded as a “no” vote.” The same will be true next week when Alderman Schabot recuses himself from voting on the Kingstonian PILOT.

READ: “Kingston council president will ask Laws and Rules Committee to discuss proposed shooting range”

READ: “Recusal and Abstention from Voting: Guiding Principles”

Thanks to both Alderwoman Hirsch and Council President Shaut for asking the only real substantive questions during the meeting. The Oscar goes to Ward 6 Alderman Tony Davis for his riveting performances.

Although the parking garage is the centerpiece of the PILOT agreement, it succeeded to move through committee even without a clear number and explanation of parking spaces that would be made available to the public (the developer stated that he couldn’t give the parking space variance numbers ‘exactly’ before making an apples / oranges comparison between the Uptown Kingston proposal and a project of theirs in Poughkeepsie).

Next Steps

The Kingstonian PILOT will now go to the Kingston Common Council caucus meeting on Monday, August 3 at 7:00pm where the full council will discuss the PILOT and what happens next. The public can call their council representative and request that during caucus, the PILOT be sent back to committee in order for all of critical questions that have been raised to be answered and put in writing. Without it, we won’t have a clear understanding of what the community is being asked to provide and what we can expect in return.

If the council decides not to send the PILOT back to committee that evening, then it will go on to the floor for a full council vote at the Kingston Common Council meeting on Tuesday, August 4 at 7:30pm.

Counting Votes

TAKE ACTION: We encourage the Kingston community to reach out to the following council members before August 3 to request that the Kingstonian PILOT either be sent back to committee or denied until all of the critical QUESTIONS THAT HAVE BEEN RAISED are not only answered but put in writing so that there is a clear understanding of what the community is being asked to provide and what we can expect to receive in return.

In counting votes, the PILOT has four solid ‘yes’ votes that include: Ward 2 Alderman Doug Koop, Ward 3 Alderman Rennie Scott-Childress, Ward 5 Alderman Don Tallerman and Ward 6 Alderman Tony Davis.

At this time, there is only one publicly known ‘no’ vote for next week’s council meeting: Ward 8 Alderman Steve Schabot (who has recused himself as he works for one of the developers. A recusal is an automatic ‘no’ vote as described above).

The passage or denial of the Kingstonian PILOT agreement therefore hangs in the balance of the following council members:

Ward 1 Alderman Jeffrey Ventura-Morell
ward1@kingston-ny.gov

Ward 4 Alderwoman Rita Worthington
ward4@kingston-ny.gov

Ward 7 Alderman Patrick O’Reilly
ward7@kingston-ny.gov

Ward 9 Alderwoman Michelle Hirsch
ward9@kingston-ny.gov

Other Involved Agencies

As a deviated PILOT, keep in mind that the Kingston City School District Board of Education and the Ulster County Legislature both need to approve the conditions of the Kingstonian PILOT request before the developer can move forward with the UCIDA. The timing of this is anyone’s guess.

What we do know, is that the next Ulster County Industrial Corporation Agency (UCIDA) meeting is scheduled for Wednesday, August 12 at 9:00am.

Outstanding Lawsuits

So far, the Kingston common council, in their discussion about the Kingstonian PILOT, have not referenced the litigation that is pending on the Kingstonian Negative Declaration SEQR decision by the Kingston Planning Board.

However, in a recent letter (submitted on July 17) from the Law Offices of Rodenhausen Chale & Polidoro LLP by Victoria L. Polidoro, who represents several property owners in Uptown, Kingston, the UCIDA was reminded of the following:

The IDA Should Not Consider the Application Until the Pending Article 78 is Resolved

The IDA should refrain from acting on the application until the pending SEQRA litigation is resolved, as any decision it makes may thereafter be invalidated.

The IDA is Not Authorized to Grant the Application

As a threshold matter the IDA does not have authority to consider or grant the Application for the Project which includes residential housing units. The IDA’s Housing Projects Policy, which was reaffirmed on January 8, 2020, only allows IDA financing it limited circumstances. It provides that:

A. The Agency will only consider the granting of any “financial assistance” (asdefined under the Act) for following projects that provide housing:

  1. A project that satisfies the definition of a continuing care retirement community project under Section 859-b of the Act; or
  2. A project by an industrial, manufacturing, warehousing, commercial,research and recreation facility (as defined in the Act) that provides workforce housing for its employees.

Last but not least, the conflicts of interest

On January 8, 2020 in our letter to the Kingston Common Council Laws and Rules committee, we requested that Ward 5 Alderman Don Tallerman recuse himself from any decision-making pertaining to the Kingstonian project. Not only did he appear in a promotional video on the developer’s website (which they have since taken down) he has also delivered public testimony in favor of the zoning change (while opposing the call for affordable housing for the project and supporting the PILOT its parking garage). His testimonies occurred months after he had already declared his candidacy for the council (Daily Freeman 2/20/19: Kingston Democrats Choose Slate of Candidates for November Election). Because he operates an event venue, the Senate Garage, that is directly across from the project site, he stands to significantly benefit directly financially from the development which represents a conflict of interest.

An image taken from the video of support of Don Tallerman (prior to his run for office) that was featured on the Kingstonian project’s website. It was taken down almost immediately after the city received our letter on January 8 letter pointing out the conflicts of interest.

PROMISES WITH NO DATA: The Mayor of Kingston Comments on the Kingstonian PILOT

Photo credit: Paul Kirby, The Daily Freeman

By Editorial Board

The Mayor of Kingston sent out a press release today, one day before the Kingston Common Council’s Finance and Audit Committee is set to review the Kingstonian PILOT request of 25 years at 100% tax exempt in exchange for an air conditioned / heated parking garage that will primarily serve luxury housing tenants and boutique hotel guests.  This is certainly not the first attempt by the Mayor to try to influence the legislative branch in their decision-making at a time when they should have autonomy.  

Below is a breakdown of the Mayor’s communication, paragraph by paragraph, that includes some of what was omitted, misleading or missing from his statement.  

“The Kingstonian project is of great importance to our City – not only will it bring desperately needed housing stock to our community, along with much-needed parking, the hotel and retail spaces will bring visitors and tax revenue. The developers have committed to paying a living wage for all new jobs created to operate the apartments, hotel and garage complex, and the public plaza will be a welcomed addition to Uptown. A PILOT for this project will have no negative tax implications, only positive!”
–  Mayor Noble

The Kingstonian luxury housing project offers apartments where the rents would be market rate (+) and unattainable to most of the Kingston community.  In the PILOT application, the Kingstonian applicant is only asked to provide a living wage for a single adult. They state that 84% of their jobs would pay $20.73 per hour, which is not nearly enough for that single person if they were raising a child in the community.   Such a worker will not earn enough to live in the Kingstonian luxury apartments and will most certainly have a hard time finding an apartment at an affordable monthly rent with a $20.73 per hour wage. It may end up being a second job for that single person who might end up living outside of the Kingston community due to the lack of affordable rentals in a county that has nearly a 0% vacancy rate.  

Read more…

KingstonCitizens.org Letter to Kingston Common Council Finance and Audit Committee and the Kingstonian PILOT

By Rebecca Martin and the KingstonCitizens.org Advisory Board

Dear Members of the Kingston Common Council Finance and Audit Committee,

On Tuesday of next week, the Kingstonian development team will submit an incomplete deviated Payment In Lieu Of Taxes (PILOT) agreement to you for discussion. Council committee members will be in a position to either pass it out of committee for a full council vote in August or table the matter. We urge the Council to table the proposal thereby allowing time for the Finance and Audit committee to workshop the incomplete agreement. 

By requesting a special Finance and Audit committee meeting outside of the regular monthly scheduled time, it suggests that the Mayor wants the Council to make a swift and ill considered decision. As the direct representatives of Kingston taxpayers, we expect that his request will not pressure you. Council members must thoughtfully and carefully review the proposal so that the sacrifices being requested of the public are clear before approving the deviated pilot. 

If the PILOT is approved unchanged, the loss of potential tax revenues to our city and school budgets for mostly luxury and boutique hotel parking could simply devastate our already fiscally strained community.  We implore you to be keenly aware of your responsibility in assessing the value of the PILOT especially during a time of pandemic induced budget cuts because once approved there will be no going back. 

1. THE INDUSTRIAL DEVELOPMENT AGENCY (IDA) MAY NOT BE AUTHORIZED TO GRANT THE KINGSTONIAN PILOT APPLICATION.  In a letter submitted to the IDA on July 17, 2020,  Victoria L. Polidoro, a lawyer who represents several property owners in Uptown, Kingston, points out that the IDA is not authorized to grant the application.  “As a threshold matter the IDA does not have authority to consider or grant the Application for the Project which includes residential housing units. The IDA’s Housing Projects Policy, which was reaffirmed on January 8, 2020, only allows IDA financing in limited circumstances. It provides that:   A. The Agency will only consider the granting of any “financial assistance” (as defined under the Act) for following projects that provide housing:  (1)  a project that satisfies the definition of a continuing care retirement community project under Section 859-b of the Act; or (2)  a project by an industrial, manufacturing, warehousing, commercial, research and recreation facility (as defined in the Act) that provides workforce housing for its employees.“ By approving the PILOT agreement now, the Council may be taking action prior to being certain that the IDA can legally authorize the PILOT request. 

2. THE IDA SHOULD NOT CONSIDER THE APPLICATION UNTIL THE PENDING ARTICLE 78 IS RESOLVED.  Included in Polidoro’s letter, she states that, “The IDA should refrain from acting on the application until the pending SEQRA litigation is resolved, as any decision it makes may thereafter be invalidated.“  

3. THE CENTERPIECE OF THE DEVELOPER’S LUXURY APARTMENT PROJECT PILOT IS A PARKING GARAGE. According to the Kingston zoning code, the minimum number of spaces needed to serve the Kingstonian project (for luxury housing, a boutique hotel and retail space) is 313 parking spaces. The proposed parking garage with 420 parking spaces is insufficient to replace the existing 144 public parking spaces stated while providing for an additional 313 parking spaces needed by the Project.  The Project will therefore result in a net loss of publicly available parking spaces. In addition, the Kingstonian will set the parking rates. Is the Kingston community, which may not be able to afford the air conditioned parking rates or find an available less costly, metered  spot, expected to otherwise park in the Kingston Plaza parking lot? 

4. AT A TIME OF FINANCIAL CRISIS WHEN THE CORONAVIRUS PANDEMIC HAS LED TO CUTS IN CITY SERVICES AND JOBS, LOSS OF TAX REVENUE COULD BE SIMPLY DEVASTATING.  While the intricacies of the IDA, real estate investment, and PILOTs are complex, what should be clear is that the proposed Kingstonian PILOT deal could potentially harm the least well off in the city as well as hardworking taxpayers who already struggle to pay school and property taxes. For Council members who have advocated for social justice in housing, services for the poor, and children in need, the PILOT should be particularly worrisome. While not all PILOTs are exploitive, they must be balanced against the potential gains an investor or industry may bring to the area. The cost of the PILOT may be offset by community gains that have not yet been realized and won’t come to fruition until after the investment. Those gains may be larger than the PILOT subsidy. For example, if you averaged each Kingstonian luxury apartment to cost $1,800 per month x 129 without including the affordable housing, that’s $2.8 million dollars per year gross revenue just for apartments. Over 25 years, that’s $69.6 million dollars plus the additional grants and tax incentives. The PILOTs that cause concern, which is true in this case, are those structured to eliminate the investor’s financial risk while displacing that risk on to taxpayers. While every investor would like to eliminate risk, ordinary citizens aren’t able to shape the political landscape to achieve their preferred financial ends. Furthermore, new residents and businesses will be adding costs to the City’s budget for things like police, fire and sewer maintenance. These costs are normally covered by property taxes. For all of these reasons, their proposed $30.6 million dollar subsidy deserves increased scrutiny for the actual benefits to the city. 

5. AFFORDABLE HOUSING UNITS IN THE KINGSTONIAN PROJECT ARE NOT BOUND BY NYS RULES.  The 14 affordable housing units that developers inserted into the Kingstonian project after much outcry were not a concession. The developer added another floor to include the additional units, now making more money: the project became even bigger without the developer sacrificing anything in terms of profit. Additionally, the developer, as a private investor, will create these units without state tax credits and will therefore not be bound by state rules. Without a binding agreement (that outlines the units’ starting rent, their size and annual escalator rate), there is nothing to prevent the affordable units from escalating in value. The Kingstonian’s “affordable housing” could become luxury apartments at any time. The PILOT agreement can and must stipulate their affordable housing criteria. 

6. KINGSTON RESIDENTS PAY SCHOOL TAX IRRESPECTIVE OF WHETHER THEY HAVE CHILDREN WHO ATTEND PUBLIC SCHOOL BECAUSE EVERYONE BENEFITS FROM AN EDUCATED POPULACE.  The Kingstonian development team says that it anticipates minimal impact on the Kingston City School District as a similar project of theirs in Poughkeepsie has produced no school-aged residents. Following this logic, anyone without children in the public school system should not be required to pay school taxes. 

7. THE KINGSTON COMMON COUNCIL DECISION IS BEING MADE WITHOUT FULL TRANSPARENCY EVEN THOUGH THE OUTCOME WILL AFFECT THE LONG-TERM FINANCIAL HEALTH OF THE CITY.   As pointed out in Polidoro’s letter to the IDA, even if the IDA has authority to approve the application and the Applicant could demonstrate that additional parking spaces would be created, the Application lacks sufficient information on the Project’s finances. The Applicant alleges that the costs of constructing the parking garage total approximately $16.8 million which, after financing, would purportedly result in annual costs of $1,067,000 over 25 years. However, it is unclear if these cost estimates are accurate. The data supporting the Applicant’s calculation has not been publicly posted. The Council should request that the IDA release all data provided and engage an independent consultant to audit the Applicant’s estimated costs to determine their validity. If the agreement truly benefits the community, the data will prove it. 

8. NYS DOWNTOWN REVITALIZATION INITIATIVE (DRI)  The applicant has said that if the PILOT is not approved, then the project will not go forward and the grant funds awarded to the Kingstonian project (or the entire amount, it isn’t clear) through NYS’s Downtown Revitalization Initiative (DRI) grant will be revoked.  Has the city confirmed with the State that this is true? Could the grant funding for example, if not used for the Kingstonian project, be transferred to one of the unfunded grant projects proposed in the DRI application? 

RESCOURCES

READ: The Kingstonian PILOT – There is more at stake than just parking