IDA Resolutions On The Kingstonian.
“We have the best government that money can buy” – Mark Twain.
Background: The Kingstonian is a proposed $57 million development consisting of 143 apartments, boutique hotel, garage and retail space to be developed by Brad Jordan and Joseph Bonura and their unidentified investors, some of whom are said to be elected officials. The project is funded on the public dime to the tune of 60.15% through New York State grants and a property tax break that will deprive Kingston, Ulster County, and the Kingston School District of $27 million. Upon sale, the investors will pay no capital gains tax because the project is within an Opportunity Zone and they will pocket at least $100 million — not bad, considering that their investment is $6 million. Fueled by false narratives and grossly overblown economic projections, this vote is one more reason for Americans to lose faith in their institutions.
January 28, 2021
The Ulster County Industrial Development Agency (IDA) on Jan. 20 passed four resolutions that pertain to the Kingstonian development, including the actual vote to grant the $27 million tax break, a burden that will be borne by residents of Kingston and Ulster County in the form of lowered services or increased property and school tax. Three of those resolutions are discussed below. Please click on the buttons.
I am not a lawyer, and I don’t have access to LexisNexis to look through case law or an editor to help me organize the material. (Hear that, Universe?) But as I compared the developers’ application to the statute and to the little case law that I know, it became clear that the developers threw as much as they could against the wall. It also became clear that in the hands of a good lawyer, not everything was sure to stick.
An aspect that should not be overlooked is what this could mean throughout New York State. A spate of similar multi-use development projects boasting the same combo of Opportunity Zone, DRI grant and PILOT tax giveaways has ignited controversy in Plattsburgh, and similar projects are being planned for Albany and Ithaca, although the latter is for affordable housing.
If not blocked, a vote like the IDA’s could open the way for a gold rush by developers seeking tax breaks to build out every square inch of Ulster County on the public dime. The remedy is a lawsuit known as an Article 78. If this fight goes to the Court of Appeals, which is New York State’s highest court, a decision there could affect the state for decades to come. After all, the Kingstonian’s developers are pinning their hopes on an opinion of the New York State Comptroller issued back in 1985, as explained in the Commercial resolution article.
Please click on the buttons below to learn more about these resolutions.