Cost of tax relief process for Kingstonian about $19K

KINGSTON, N.Y. » The Ulster County Industrial Development Agency has accumulated about $19,400 in expenses related to the process of authorizing tax breaks for the proposed mix-used development known as The Kingstonian.

Agency CEO Rose Woodworth said Wednesday that the costs will be paid out of the nearly $55,000 the developers paid the IDA to carry out the process.

“The [agency] Audit Committee asked me to total the amount of money spent on administrative staff for The Kingstonian, and my best estimate to date is $19,400,” Woodworth said.

“This does not include the time spent during board meetings or on meeting documents that may have included The Kingstonian,” she added.

Fees charged by the agency’s attorneys also are not included but are to be paid by the developers when there is a closing that finalizes the tax relief.

The Kingstonian, proposed by Kingstonian Development LLC and Herzog Supply Co., is to comprise 143 residential units, including 14 that are considered affordable; 8,900 square feet of commercial space; a 32-room boutique hotel; and a 420-space parking garage, with 277 spaces available to the public.

The development, straddling Fair Street Extension between North Front Street and Schwenk Drive in Uptown Kingston, is expected to cost about $58 million to build if it wins final approval from the city of Kingston.

The Industrial Development Agency board voted 6-1 last month in favor of a payment-in-lieu-of-taxes, or PILOT, deal that would give the developers of The Kingstonian nearly $26.2 million in relief from property taxes over 25 years.

The developers also are to receive sales and use tax exemptions of $1.48 million, and $325,575 in waived mortgage recording taxes.