Tax breaks could shift to brain facility's new owner

The move regarding the Northeast Center still requires approval by the Ulster County Legislature.

The Ulster County Industrial Development Agency board has given conditional approval to transferring the remaining 11 years of the payment-in-lieu-of-taxes agreement for the Northeast Center for Rehabilitation & Brain Injury if the town of Ulster facility is sold.

Board Chairman John Morrow on Monday said the county Legislature must approve the transfer of the deal from seller Hudson River Valley LLC to buyer 300 Grant Avenue LLC for it become final.

The other two governments that levy taxes on 300 Grant Ave. property, the town of Ulster and the Kingston school district, already have approved the transfer of the tax-relief agreement, known as a PILOT.

“We’re just waiting for the county to endorse it,” Morrow said.

Prospective buyer 300 Grant Ave LLC comprises Uri Koenig, with a 60 percent ownership state, and Efraim Steif, with 40 percent.

“Efraim has been managing [the Northeast Center] as part of a management company, and they’re buying it,” Morrow said.

The Northeast Center for Rehabilitation & Brain Injury is a 280-bed facility that treats patients with traumatic brain injuries. It opened in 1999 in a building formerly occupied by IBM.

The PILOT agreement allows the property owner to save $7.4 million in taxes through 2028. That’s a roughly 37 percent break from full taxation.

In 2012, Hudson River Valley LLC fell $166,000 behind in tax payments owed to the town, Ulster County and the Kingston school district. Ultimately, the company was allowed to pay the amount under a monthly schedule that waived some of the interests and penalties.

Jeffrey Leviti, attorney for 300 Grant Avenue LLC, said the new owners are planning to improve services at the center.

“The operator would like to expand its services and create better services,” he said. “The fact that they do not own all the property kind of restricted their ability to enhance their services. The purpose is not only to benefit them, but also benefit the area as well.”

The Northeast Center has 306 full-time employees and 24 part-time employees.