Kingstonian PILOT: “Serious deficiencies in the application currently pending before the IDA”

Last evening, 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.

Some of the highlights:

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. (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.

The Project will Result in a Loss of Public Parking Spaces

“Using a very conservative estimate, the minimum number of spaces needed to serve the Kingstonian is 313. The proposed parking garage with 420 parking spaces is not sufficient to replace the existing 144 public parking spaces and provide for the additional 313 parking spaces needed by the Project.1 The Project will therefore result in net loss of publicly available parking spaces.”

The Applicants’ Financial Analysis Is Insufficient

Even if the IDA had 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 not at all clear if these cost estimates are accurate. The data supporting the Applicant’s calculation has not been publicly posted. We request that the IDA release all data provided and engage an independent consultant to audit the Applicant’s estimated costs to determine their validity.

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.

An IDA Member May Have a Conflict of Interest

“However, even if this does not rise to the level of a formal conflict of interest under Article 4 of the New York State Public Officers Law, it at the very least creates the appearance of impropriety and weakens the public’s confidence in its government. Therefore, we request that this member of the IDA recuse himself from consideration of the present application.