The UCIDA AND PILOTs: Accountability to Taxpayers and Citizens.

VIEW our Event Page for the UCIDA’s Wednesday Meeting

VIEW our Petition “UCIDA and PILOTs:  Accountability to Taxpayers and Citizens.


Citizens have voiced concern about a PILOT (Payment in Lieu of Tax)
agreement and other tax incentives currently on the table for the ‘Hudson Valley Kingston Development (HVKD) LLC’ proposal in Uptown, Kingston.

According to their application, they propose to  “build four boutique hotels in historic Uptown Kingston. There will be 43 hotel rooms in total, with a restaurant at the 301 Wall Street location. This will create a welcome space for community events and gatherings, and stimulate much-needed tourism and revenue for surrounding businesses.”
REVIEW  HVKD’s application

Last week, the Ulster County Industrial Development Agency (UCIDA) held a public hearing on the HVKD’s application. Very few members of the public were in attendance.

In our opinion, that’s probably because UCIDA’s process can be difficult to follow, especially for something like a PILOT agreement or tax abatements. Often, meetings are insufficiently publicized leaving many citizens in the dark.

Incentives are important tools in attracting and supporting business. Allocations of tax dollars in this context are governed by state law and to that end, there are real checks and balances here.

However if the public is not properly made aware of the opportunities that they have throughout the process, then only a handful of appointed officials are in a position to make decisions that will certainly extend beyond their tenure. For that reason alone, it is in everyone’s best interest for a transparent process to be a priority, one that will allow citizens a better understanding and to enter into a more robust discussion.

The next meeting on the proposal is to occur on Wednesday, October 11th at 8:00 am (in the Karen Binder Library on the 6th Floor of the County Office Building, 244 Fair Street, Kingston, NY).  To help the public proceed in an organized manner, we offer the following information and a recommendation for the public to make to the UCIDA board for their consideration.   

VIEW  our Event Page for more information on Wednesday’s meeting.

Background on Industrial Development Agencies (IDA) From the NYS Comptroller.

First, appointments to the Ulster County Industrial Development Agency are made via resolution by the membership of the Ulster County Legislature.  Members serve at the pleasure of the Legislature.  

The Ulster County IDA must follow State law, based on background provided by the NYS Comptroller Thomas P. DiNapoli, the role of IDA’s in New York State are charged with the following:

“Industrial Development Agencies (IDAs) are authorized to provide financial assistance for certain types of projects. Financial assistance includes the issuance of bonds by the IDA to finance construction of a project and straight-lease transactions. Because IDAs’ property and activities are tax exempt, the IDA may pass the benefits of certain tax exemptions (e.g., real property, sales and mortgage recording taxes) to the private entities that undertake the projects. The loss of revenue associated with these tax exemptions can be offset with an agreement for payments in lieu of taxes (PILOTs), under which the private entity agrees to pay all or a portion of the taxes that would otherwise have been imposed had the project not been an IDA project. The IDA’s role is not just to act as the conduit for financial assistance, but also to monitor the success, progress, and cost-benefit of projects, including whether projects are honoring their commitments and agreements.”

In addition to making these decisions, the IDA must also provide follow-up on the projects where they have provided support.

“The IDA’s role is not just to act as the conduit for financial assistance, but also to monitor the success, progress, and cost-benefit of projects, including whether projects are honoring their commitments and agreements.”

The 2016 New York State IDA Law

In 2016, laws were put into place to increase the accountability and efficiency of IDAs.

“In June 2016, new legislation became effective to increase the accountability and improve the efficiency and transparency of IDA operations. For new projects, the law requires standard application forms for requests for financial assistance, uniform criteria for the evaluation and selection for each category of projects for which financial assistance is provided, uniform project agreements, annual assessments on project progress including job creation and retention, as well as policies to recapture, discontinue or modify financial assistance or tax exemptions.”


Next Steps in the process for the Hudson Valley Kingston Development LLC PILOT agreement and tax incentives.

On Wednesday, October 11th at 8:00 am, the Hudson Valley Kingston Development LLC is listed in the (Draft) AGENDA #12: Projects “Hudson Valley Kingston Development (Public Hearing held on October 4, 2017)”.  There isn’t information listed as to whether or not the board will be making a decision regarding PILOTS or other available tax incentives for this proposal.  Therefore, it’s important to make your voice heard now – and you can do so by

SIGNING OUR PETITION:  UCIDA and PILOTs – Accountability to Taxpayers and Citizens.   VIEW 

The County must carry on its important business for the residents of Ulster County. We also support and appreciate new business opportunities in our area.  However, given the concerns of the public, we request that any approvals of tax incentives for the Hudson Valley Kingston Development LLC be delayed by the board to allow the following:

  1. Provide additional public educational opportunities on the UCIDA’s process in assigning PILOTS and tax incentives to proposed projects, including, but not limited to:

    * The necessary documentation that is required as evidence that an applicant demonstrates a need for a PILOT or other tax incentives as well as to show that the applicant has exhausted all other available options based on NYSEDC recommendations.

    * Explain UCIDA’s Uniform Tax POLICY that, based on the MATRIX determines the Full-Time Equivalent (FTE) hourly rates assessed as per the number of jobs it will create.

  2. How the UCIDA applies recommendations to this, and all project considerations, provided by the Ulster County Comptroller from his 2014 report “A Study of the Impact and Best Practices for Industrial Development Agencies”, specifically:* Support only Projects which likely will not proceed but for IDA assistance;* Require market analyses for “retail” (and services) Projects;* Calculate costs and benefits specifically attributable to IDA assistance;* Give PILOT points only for jobs attributable to IDA assistance;

    * Interpret the cost-benefit analysis with care;

    * Require proof of pre-assistance employment levels;

    * Maximize public access to information;

    * Consider a scoring category for local support.

  3. The UCIDA’s follow-up procedures after-tax incentives are awarded.

  4. Additional public hearings to be scheduled and publicized for more public input.


Leave a Comment