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.  

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…

VIDEO: “Kingstonian” Application Appears Before Kingston Planning Board.

By Rebecca Martin

At the recent City of Kingston’s Planning Board meeting, the proposed Kingstonian project gave its formal presentation and presented its application for the first time, starting what will be a very long process.

All of the documents and the presentation will be made available at the planning office.  Citizens are encouraged to schedule a time to review the materials by calling: (845) 334-3955. We’re asking that they be placed online, too, under the Planning Departments “Planning Project” page.  

Following the presentation, the board voted unanimously on the following;

  • The Kingstonian Project is a Type 1 Action in SEQR and a coordinated review must be taken. A full Environmental Assessment Form (EAF) will be required to determine any environmental impacts.
  • The City of Kingston Planning Board requests that it be Lead Agency of the project.  Their request will be circulated to all Involved agencies who will have 30 days to respond to either approve or deny their request.   (List of Involved agencies forthcoming).
  • In 30 days, the the Planning Board will ‘entertain’ the project at a regular board meeting and schedule a public hearing (more on this in the coming weeks). 

Please review video from last night’s planning board meeting. Brought to you by KingstonCitizens.org and filmed by The Kingston News.

 

Leo Schupp
Special Permit 106 W. Chestnut Street
4:20 – 6:15

Bernie Redman
Special Permit 106 W. Chestnut Street
6:26 – 6:52

Alex Panagiotopoulos
Kingstonian Application
6:54 – 8:14

Abigail Frank
Special Permit 106 W. Chestnut Street
8:20 – 10:25

David Gordan
Special Permit 106 W. Chestnut Street
10:36 – 16:30

Rashida Tyler
Kingstonian Application
16:52 – 18:15

Callie Jayne
Kingstonian Application
18:22 – 19:30

Linda Seekamp
Special Permit 106 W. Chestnut Street
19:36 – 20:44

Barbara Stedge
Special Permit 106 W. Chestnut Street
19:45 – 21:05

Owen Harvey
ICC Application
21:06 – 22:10

Juanita Velazquez-Amador
Kingstonian Application
22:20 – 24:26

Betsy Krat
Kingstonian Application
24:30 – 25:01

Tanya Garment
Comp Plan Zoning Task Force and Kingstonian application
25:08 – 28:55

Public Hearing (Tabled)

Item #3: #270 Fair Street SPECIAL PERMIT RENEWAL for a 12 room hotel with 978 business rental space. SBL# 48.331-4-20. SEQR Determination. Zone O-2, Stockade Overlay, HAC, MUOD. Ward 2. Hudson Valley Kingston Development/applicant; Charles Blaichman/owner.

Old Business – Kingstonian Project 

Item #4: #9-17 & 21 North Front Street and 51 Schwenk Drive and a portion of Fair Street Extension LOT LINE DELETION of the Lands of Herzog’s Supply Company and the City of Kingston. SBL 48.80-1-25, 26 & 24.120. SEQR Determination. Zone C-2, Mixed Use Overlay District, Stockade Historic District. Kingstonian Development, LLC/ applicant; Herzog’s Supply Co. Inc. & City of Kingston/owner.

Item #5: #9-17 & 21 North Front Street and 51 Schwenk Drive and a portion of Fair Street Extension SITE PLAN/SPECIAL PERMIT to construct a Mixed Use building with a 420 car garage, 129 apartments, 32 hotel rooms, and 8000sf of retail space. SBL 48.80-1-25, 26 & 24.120. SEQR Determination. Zone C-2, Mixed Use Overlay District, Stockade Historic District. Kingstonian Development, LLC/ applicant; Herzog’s Supply Co. Inc. & City of Kingston/owner.

Item #6: #106 West Chestnut Street SPECIAL PERMIT to operate a Boarding House. SBL 56.34-11-22. SEQR Determination. Zone R-1. Ward 9. Chestnut Hill NY Inc.; applicant/owner.

 

Brooklyn Real Estate Management Company Negatively Impacts Quality of Life in Ulster County.

 

Last evening, we attended the Sunset Gardens Tenant Association meeting at the Town of Ulster’s Senior Center.  One after another, tenants of apartment complexes in the Towns of Ulster and Esopus spoke of the shocking disrepair, unsafe conditions and treatment of those living at Sunset Gardens (ToU), Lakeshore Villas (ToE) and Black Creek Road (ToE).  Special thanks to Laura Hartmann and all of the citizens from Sunset Gardens who had the courage to organize.

The culprit – E & M Management – the real estate investment and management company based in Brooklyn, NY is mostly new to the area, gobbling up apartment complexes that include “68 apartments across from the Rondout Creek” in downtown Kingston and a vacant parcel near the Maritime Museum to build the “Kingston Waterfront Plaza”, a mixed-use project.  There is speculation that they are looking at Dutch Village, too – in uptown Kingston.

Although the planning process in Kingston is complete for their new build downtown – with a negative declaration in SEQR which is absolutely unbelievable – we are continuing our efforts to advocate for an improved development process for our planning department and planning board. We will keep a close eye on this company and work with our neighbors to assure that if E & M and all of their LLC partners want to come to our community, it is not on their terms.

Thanks to Clark Richters of The Kingston News for filming the event, brought to you by KingstonCitizens.org.