Foster Supply Hospitality (FSH) plans to bring a new hotel, spa, event space and dining facility to the properties at 48, 54 and 62 Grand Street. These properties are the former Masonic Temple, YMCA and American Legion buildings. Two public hearings took place on November 4 and December 20, to allow the public to offer comments on the project.

In the first six years of a 12 year payment in lieu of taxes (PILOT) program, the percentage of exemption would be 90% of the amount assessed on the improvements to be made under the proposed project. This exemption decreases each year. In year 12, it ends at 16.67%, said Cher Vickers, Executive Director of the Industrial Development Agency, during the December 20 public hearing. “The proposed PILOT agreement would be for a term of up to 12 years with the company making the payments in each year of the PILOT in accordance with the schedule previously published by the agency” Vickers said. “The main concern for the PILOT is that it’s too generous,” Vickers emphasized to the public that the IDA acted accordingly and worked diligently through the course of this process.

In the FSH IDA PILOT application, the New York State Sales and Compensating Use Tax, Mortgage Recording Taxes, Real Property Tax Exemptions, and County Sales Tax came to $4.7 million. The Real Property Tax Exemptions number listed was approximately $3.6 million. In the amended FSH IDA PILOT application, the Real Property Tax Exemption was amended to $3.3 million bringing the total exemption requested to $4.4 million. In the amended application, the proposed PILOT program was requested to be over a 12 year period.

The FSH IDA PILOT application stated FSH intended to purchase these properties for $1.3 million, with total project costs at $24.4 million. A down payment of $250,000 had been given to the county. FSH looks to close on the properties in the next six months. Orange County Deputy County Executive Harry Porr said the closing agreement had been extended to February 2022. The county response is one of support for this project in Newburgh.

According to the FSH IDA PILOT application, the Boys and Girls Club are tenants of the American Legion building until the end of the year. The application stated the three properties are made up of 1.78 acres of land. The document projected 61 full-time jobs.

“We’re really excited about this project and being part of the City of Newburgh community,” co-founder of FSH Sims Foster said. “This project displaces nobody. Secondly, these buildings are not currently on the tax roll. If and when we do buy them, they will go on the tax record and will start paying taxes right away.” FSH operates out of the Catskill Mountain area and maintains restaurants and hotels, honoring the history of the space and adding some new charm, according to their site. Across the street from Senator James Skoufis’ office sits these three buildings that are part of this project. His hope is this project will bring growth and prosperity to the city but more importantly, he wants a fair deal for the city. Boys and Girls Club Executive Director Kevin White expressed excitement for the project and through smart development, he wants the best deal possible for the city.

Councilman Bob Sklarz had an opportunity to tour the three properties with Foster during the course of the summer and believes that this a great opportunity for development. Councilwoman Ramona Monteverde also toured the buildings with Foster and supported the project but addressed the need to revisit the finances involved. “I’m very interested in hearing the public comments,” Monteverde said.

Councilman At-Large Anthony Grice, who also visited the properties, is in full support of the project but also emphasized the review of the PILOT.

“We are not anti-PILOT and we are not anti-development. It just has to be in reason,” Grice said.