The Newburgh City Council voted Monday to approve a payment in lieu of taxes agreement with developer Pennrose to facilitate the purchase and renovation of the Bourne and Kenney apartment complexes. The resolution passed 7-0, with Councilmember Ronald Zorilla abstaining.

The vote marked the third time the proposal had come before the council. Pennrose first presented its renovation plans and proposed PILOT agreement in September, though the council did not vote on the proposal at that time.

In early January, residents of the Kenney apartments contacted Ward 3 Councilmember Tamika Stewart about a persistent lack of heat and hot water in several units. Pennrose returned to the council in late January, but members sought additional language in the agreement before approving it.

The PILOT approved Monday includes provisions tying tax incentives to the buildings’ ability to pass inspection and obtain a rental license — a first for the city. Multiple council members spoke in support of the provision, which would allow the city to revoke tax incentives if conditions in the buildings deteriorated.

“This PILOT will be instrumental in making sure the tenants who currently live in these apartments get fully renovated apartments,” Councilmember Giselle Martinez said. “This opportunity was very rare, because you don’t usually have an offer from a developer to come in and do full renovations.”

Zorilla, despite abstaining from the vote, voiced support for the accountability measures included in the agreement.

“We can no longer have people getting a discount for Newburgh and doing our people wrong,” he said.

Stewart credited Kenney residents for pushing the council to secure stronger protections in the agreement.

“We pushed for stronger language in this PILOT, which is protection for the residents. That, to me, for all of you, is a big victory,” Stewart said. “Today is proof that just because we don’t do it like that, doesn’t mean it can’t be done.”