R.J. Smith and David Hawkins broke ground on a new office in Goshen late last year, with plans to erect a 13,500-square-foot building at the intersection of Matthews and West Main streets, creating an eye-catching treat for passing motorists on the Route 17-future I-86 corridor and rateables for the village.
Like many businesses, Real Estate Solutions L.L.C. applied to Orange County”™s Industrial Development Agency for some incentives to help ease construction costs and taxes.
The new building would not only be home for the Realtors, but would offer space for tenants and, as the equation goes, create new jobs.
However, plans are stalled in the IDA due to written complaints from village Mayor Robert Weinberger.
Calls to the mayor seeking comment for this story were unreturned as of press time.
New IDA chairman James Petro said Real Estate Solutions made an application for an enhanced PILOT (payment in lieu of taxes) program, as well as relief from mortgage tax and taxes on construction materials. What is a typical request from a new business, Petro says, is being misconstrued as giving away the store.
On the contrary, says Petro, “Real Estate Solutions will continue to pay full taxes on the land. The enhanced PILOT program they applied for would raise taxes gradually ”“ 10 percent each year ”“ for a 10-year period, until they are up to full assessed value on the improvements, which is the $2.2 million building they want to construct. Real Estate Solutions would still be required to pay taxes on any improvements in the village, such as toward a new library. The PILOT program does not exempt businesses in the IDA program from those types of projects.”
All prospective projects must pass muster in order to get tax breaks from the IDA. Already approved, Crystal Run Healthcare”™s enhanced PILOT program for its new 127,000- square-foot building in the town of Wallkill, will break ground in 2009.
For Petro, dealing with the public on thorny issues is nothing new. Before he accepted the chairmanship of the IDA, he sat as chairman of the town of New Windsor Planning Board for 15 years. Now, as IDA chairman, it”™s a new forum; only this chairmanship is a no-pay job. “At least I made $3 a day as Planning Board chairman for New Windsor,” said Petro.
Petro hopes a public hearing on March 5 at the Village of Goshen Town Hall, beginning at 10 a.m., will help assuage both Weinberger”™s and residents”™ fears that the village will be losing money on the deal. The public hearing, said Petro, is being held in response to Weinberger”™s letter opposing the project. “We want people to be able to ask us questions, and for us to give them straight answers,” said Petro.
“This project represents rateables for the village of Goshen and falls within the guidelines of the IDA requirements,” said Maureen Halahan, president of the Orange County Partnership. “The village is not losing money. It is gaining a beautiful stand-alone office building that will bring in revenue to the community and create jobs.”
Petro says the IDA will make its final decision on Real Estate Solutions”™ applications when it next meets at the Orange County legislative offices in Goshen”™s Government Center on Wednesday, March 19 at 3 p.m. The meeting is open to the public.
Before that, the IDA will hold a public hearing on Real Estate Solutions”™ plans at Goshen Town Hal1, March 5 at 10 a.m.
