District seeks Kingstonian info
School district officials have scheduled a Sept. 2 discussion on the tax breaks sought for the Kingstonian project.
School district officials have scheduled a Sept. 2 discussion on the $30.64 million in tax breaks being sought for the $57.89 million Kingstonian project.
Requests by the developer for support of the mixed residential housing and commercial development project was noted Wednesday during a Board of Education meeting.
“I think we need more information before we are ready to discuss it,” board President James Shaughnessy said.
“I would like ... that we have a special committee of two board members and (Superintendent Paul Padalino) to get an explanation of their proposal and ... the projects behind their proposal,” he said. “We will then bring it to the board.”
The committee will consist of Shaughnessy and Trustee James Michael.
Under the plan, Kingstonian Development LLC and Herzog Supply Company will use the existing Herzog-owned property on the east side of Fair Street and the city owned vacant lot on the west side to construct a complex that has 129 market rate apartments, 14 affordable housing units, and 9,000 square feet of retail space.
Additionally, if the project is more profitable than expected, the owners would share 5 percent of the additional profit with the city, Ulster County, and the Kingston school district at a rate proportional to the current tax rate.
Developers have been seeking support from the taxing entities as part of an Ulster County Industrial Development Agency application seeking to have $28.84 million in property taxes waived over 25 years as being granted exemptions for another $1.8 million in mortgage, sales and use taxes.
Kingston Common Council members on Tuesday voted 8-0 in favor of the tax breaks, with Alderman Steven Schabot, D-Ward 8, abstaining because he is employed by Herzog Supply Company
Council members predicated their support on developers increasing firstyear taxes from $28,488 to $40,000 and increase the amount by 3 percent annual, guarantee that the 14 affordable housing units would be part of the complex after the tax deal expires, and the tenants of the affordable housing units would have a 50 percent reduction in their monthly parking fees.
The request for tax breaks comes as the city is dealing with a lose of revenues from sales taxes and school district officials are bracing for additional what they expect to be millions of dollars in additional costs related to COVID-19.