Peekskill Industrial Development Agency and Facilities Development Corporation Joint Meeting – August 26, 2025

The joint meeting of the Peekskill Industrial Development Agency (IDA) and the Peekskill Facilities Development Corporation (PFDC) convened on August 26, 2025, at 7:06 PM in the Common Council Chamber. The board discussed the proposed Broad Howard affordable housing project, adopted a revised procurement policy, reviewed financial reports, and updated the IDA's financial assistance application fee structure.

Consent Calendar

• Minutes: The minutes from the July 22, 2025, IDA and PFDC meetings were approved unanimously.

Discussion Items

• Broad Howard Affordable Housing Project (Old Business): Developers Chuck Lesnick and Niv Rotem presented their 57-unit rental project at the corner of Broad and Howard Streets. The project, with a total development cost of approximately $50 million, includes 6 units at 30% AMI, 18 at 50% AMI, and 32 at 70% AMI. The developers requested a PILOT (payment in lieu of taxes) of about $44,000 per year (less than 5% of projected rent roll), far lower than the roughly $1,500–$2,000 per unit (about 10% of rent) seen in comparable projects like 645 Main and Loft on Main. Board members, especially Deborah Post, expressed that the $775-per-unit proposal was unlikely to be acceptable, citing the need for consistency with other projects. The developers noted higher construction costs, increased interest rates, and the building's inefficient design as justifications. The board recommended that the developers submit revised numbers to city staff for review before a September city council meeting.
• Monthly Financial Report: Abby presented the IDA and PFDC financial summaries. IDA revenues included $11,500 in interest and a $40,000 transfer from savings to cover kitchen incubator expenses. The PFDC report showed $35,000 paid for the youth culinary workforce development program. Concern was raised about high Con Edison electric bills (approximately $700–$800 per month) for the vacant kitchen incubator building; staff agreed to inspect and turn off unnecessary power.
• Revised Procurement Policy: Abby outlined proposed updates to align with state regulations. The competitive bidding threshold for purchase contracts is raised from $10,000 to $20,000, and for public works/service contracts from $20,000 to $35,000. Executive director approval authority increases to $4,999 for purchases and $10,000 for services. The policy was adopted unanimously.
• PFKI (Firehouse Kitchen Incubator) Update: Contract #1 (construction) was rebid on August 26, with bids due September 26. A walkthrough for bidders is scheduled for September 9. Contract #2 (kitchen equipment) and #3 (freezer/cooler) had apparent low bidders who extended their bid dates; clarifications are ongoing. The board agreed that if a qualified low bid is received, it can proceed directly to the U.S. EDA for approval without waiting for the next regular meeting.
• Application for Financial Assistance – Fee Structure: Justin Miller and Abby presented an updated fee schedule and application form. The new fee structure includes a non-refundable application fee of $2,500 plus a $500 processing fee, with a $10,000 deposit (of which $9,500 is credited toward closing fees). The deposit may be replenished if depleted. The board adopted the fee schedule and authorized staff to finalize the application form, with minor edits including clarifying the public art map (which incorrectly said “visitors” in one question) and adding sections on sustainability commitments and detailed material commitments (jobs, internships). The application will be posted online for immediate use.
• 901 Main Street Update: Justin reported that the owner of Courtyard Housing is seeking a buyer, who may request IDA approval to assign the existing PILOT and potentially extend it. The city is involved due to the adjacent parking garage and security concerns. No action was taken, but an application is expected in fall 2025.
• Public Art QR Code Project: Matthew introduced a new QR code–based public art map developed with DRI funding and the Peekskill Arts Council. The map provides curated tour notes from Hudson Valley MoCA. Signs are being tested downtown and on the waterfront.

Key Outcomes

• Minutes of July 22, 2025, approved (both IDA and PFDC).
• Revised Procurement Policy adopted (competitive bidding thresholds increased).
• Fee schedule for financial assistance adopted (non-refundable $2,500 + $500 processing fee, $10,000 deposit credited at closing; replenishment required).
• Staff authorized to finalize the application form with minor edits (clarify public art map question, add sustainability and material commitment sections) and post online.
• PFKI rebid issued; staff may proceed to EDA if a qualified low bid is received.
• Broad Howard project: No formal decision; developers to submit revised financials to city staff for review ahead of the September 2 committee meeting and September 8 city council meeting.
• No new business or executive session.

The IDA and PFDC meetings adjourned simultaneously at approximately 8:45 PM.