The Kingston Schools Board approved a tax break for developers on the mixed-use Kingstonian project in Uptown Kingston.
After more than an hour of debate during Wednesday’s session and trying to delay the vote, the school board voted 6-3 against the PILOT (paying instead of tax).
What you need to know
- The school board voted 6-3 against a tax break of $ 25 million for developers of the Kingstonian
- Some board members sought a delay in order to negotiate more benefits for the district
- IDA officials have not guaranteed they will adhere to their own guidelines that require board approval for the tax break, but one director said he received assurances that IDA will adhere to the guidelines
Developers Joe Bonura Jr. and Brad Jordan had been lobbying for $ 25 million in property tax breaks for over 25 years.
During the November School Board meeting, Ulster County Development Agency officials confirmed that if the tax treaty were approved, the school district’s property tax would be cut by $ 16 million over the next 25 years.
The project would bring 143 apartments, a parking garage, a hotel, a promenade and retail space.
The IDA required the developers to approve the Kingston Common Council, Ulster County legislature, and the school board. The Joint Council approved an earlier version of the PILOT and the legislature approved the latest version.
Board member James Michael said a major reason for his no was that developers and district officials were lobbying board members and trying to sell the tax plan, but did not offer a much larger tax break.
“Everyone has lost their credibility,” said Michael of the developers, county executive and Kingston Mayor Steve Noble. “Everyone lost their trust because they didn’t deal with the application openly and honestly.”
The IDA hinted during their last meeting with the school board that they may be violating their guidelines, which require approvals from local authorities, and are giving developers the tax break regardless of the votes, as state law doesn’t directly require those approvals.
Board member Herbert Lamb said he had received assurances from the deputy district director that IDA would follow its guidelines.