A proposed development known as the Kingstonian that would bring 143 apartments, 8,000 square feet of commercial space and a new 420-space parking garage to a section of the city of Kingston known as Upper Kingston has received a vote of support, albeit a peripheral one. Kingston”™s Common Council by a vote of 7 to 2 has approved closing the block-long Fair Street Extension so that it can be included in the construction plans for the 2.5-acre site where JM Development Group LLC, working with Herzog Supply Co., wants to build the $52 million project.
The vote came after the Common Council was ordered by a court to hold a second public hearing on the issue. The original virtual hearing had been beset with technical problems that led to members of the public having trouble listening to what was going on and also being unable to speak.
Principals in the JM Development Group are brothers Joseph and Michael Bonura, who also own the Bonura Hospitality Group. Also part of JM is Patrick Page of Page Properties based in Newburgh.
Herzog Supply Co. owns Herzog”™s Home Center in Kingston, Herzog Paint & Decorating, which has four stores and Kingston Plaza, a 310,0000-square-foot retail shopping center adjacent to the development site that has 34 stores.
After the Common Council vote, the developers posted on the project”™s Facebook page, “Thank you once again to the community and to the hundreds of supporters who have spoken out in favor of the Kingstonian project throughout this long process. Many Council members spoke with great clarity and thoughtfulness as they declared their favorable vote. We are thankful to the Common Council for all they have done to understand the complexities of this transformative project and the benefits it will deliver to our community. It is with great appreciation, as we advance the Kingstonian forward.”
The project would include rebuilding the original century-old Kingstonian Hotel to create a 32-room boutique hotel. The developers point out that a public plaza would create a gathering spot for visitors and residents that could be used for entertainment, meetings and relaxing. The development also would bring public restrooms to the area.
The new parking garage would have 250 spaces set side to replace a three-story city parking garage that was demolished because of structural issues. In 2008 the City of Kingston issued Requests for Qualifications (RFQ) from entities wanting to develop the then-vacant parking garage site. Additional RFQs were issued in 2013 and 2016. The 2016 RFQ required that any redevelopment include at least 200 public parking spaces.
The developers say the project would create about 200 construction jobs and an estimated 153 permanent jobs. They say new shoppers and visitors would be attracted to the city, and that the project would generate an estimated $333,000 in sales taxes each year.
The apartments in the project would include 10% in the affordable housing category.
The Ulster County Industrial Development Agency (IDA) approved a $1.4 million sales tax exemption for the project along with a $325,000 mortgage recording tax exemption. A 25-year PILOT (payment in lieu of taxes) property tax agreement was approved by the IDA.
The developers say private funding of the project will amount to more than $46 million, with Empire State Development Grant Funding of $2 million, Restore New York Funding of $1 million and Downtown Reinvestment Initiative I Funding of $3.8 million.
Additional votes on the project by the Kingston Common Council or Planning Board had not immediately been scheduled.
