Industrial Development Agency Meeting - September 30, 2025

The Peek Skill Industrial Development Agency (IDA) held a regular meeting on Tuesday, September 30, 2025, at 7:11 PM in the Common Council Chamber. The meeting covered acceptance of minutes, financial reports, updates on the Firehouse Kitchen Incubator (PFKI), a significant presentation from Treadway regarding the 901 Main Street PILOT application, and discussions on a draft PILOT policy, business database, and destination marketing. The related Facilities Development Corporation (PFDC) meeting was also conducted concurrently.

Consent Calendar

• Correspondence: None.
• Acceptance of Minutes: Motion carried to accept the minutes of the August 26, 2025 IDA and PFDC meetings (unanimous).
• Monthly Financial Report: Abby presented the PIDA financial summary. Total revenue as of September 19: approximately $110,000. Total expenditures: $53,000 (professional fees, legal counsel, Rooke LLC, $10,000 to the city). Bank account balances total about $1 million across four accounts. A $139,000 Drum Hill PILOT payment was received and will be distributed to tax jurisdictions shortly. The Firehouse Kitchen Incubator expenses total $29,426 to date, with notable Con Ed savings of approximately $250/month after investigation. The cumulative project spend is $201,000; no state/federal reimbursements have been received yet.

Discussion Items

• PFKI (Firehouse Kitchen Incubator) Update: Bids for contract #1 rebid were extended to October 7, 2025, after a September 9 pre-bid walkthrough attracted nine general contractors. The bid opening will occur on October 7. Contracts #2 and #3 require minor change orders but low bidders have agreed to hold prices. Next steps include city loan clarification and potential award authorization after bid evaluation.
• 901 Main Street – Treadway PILOT Application: The board heard a presentation from Treadway (Will Pelajan, Adam Sussey, Bill Blodgett) regarding the acquisition and rehabilitation of the 168-unit affordable senior housing building (Courtyard Housing). Key points:
  • Treadway intends to purchase the property but cannot obtain low-income housing tax credits or tax-exempt bonds due to state policy changes. The project is 100% privately financed.
  • Planned improvements: critical structural work (facade, scaffolding), parking lot contribution, full-time property manager, $150,000/year social services (resident services coordinator, food distribution, health care, security), $100,000/year security upgrades. Total project budget: $5.5 million.
  • They are requesting a 40-year PILOT extension (20 years beyond the current PILOT ending in 2045) and a reduction of payments to zero, arguing that the services they provide will offset lost tax revenue. Currently, the property pays about $200,000/year under a 6% shelter rent PILOT; the full taxable value would be $600,000/year. The current PILOT saves the owner approximately $400,000/year.
  • Board members expressed significant concerns: the proposed subsidy over 40 years would total an estimated $24 million in tax benefits for a $5.5 million project. The $5,000/unit interior renovation budget was questioned. The request includes mortgage recording and sales tax exemptions.
  • The board decided to work with city staff (Assessor Robert Moran, City Manager Matt Alexander) to produce a summary report for the City Council, conduct a cost-benefit analysis, and negotiate terms. No decisions were made; the board emphasized the need for a more balanced arrangement.
• Broad Howard (Lesnik) PILOT Update: Letters from the city manager and assessor were reviewed, articulating a new policy direction: starting point for PILOT negotiations should be 50% of full taxes. The letters emphasized that past subsidies were too generous relative to community benefits. This aligns with a revised PILOT policy discussion.
• Draft PILOT Policy Discussion: The board reviewed a proposed qualitative PILOT policy intended to guide future decisions, particularly for transit-oriented development sites. The policy is seen as a complement to the Uniform Tax Exemption Policy (UTEP). Further discussion with the council is planned.
• Business Sponsored Destination Marketing Entity & Business Database Update: The city manager initiated a destination marketing concept ("Destination Peek Skill") but shifted to building a verified business database first. Abby and interns verified approximately 900 businesses from an original list of 1,000. The database includes business types and location data. A survey will be sent to these businesses to update information, gauge interest in destination marketing sponsorship, and help form a business council. Board members provided feedback on survey design, including tailoring questions and sharing results. The board agreed to have Abby present the database at the next meeting.
• Logo Survey: A recent logo survey received 400 responses but lacked a strong positive consensus. Consultants will produce more options. The board urged sharing survey results publicly to encourage future participation.
• GDC Fort Hill Apartments Refi: The applicant decided not to pursue a mortgage tax exemption for their refinancing due to minimal benefit.

Key Outcomes

• Approved minutes for IDA and PFDC (August 26, 2025).
• Accepted the monthly financial report.
• Directed staff (Matthew, Justin, Abby) to prepare a summary of the Treadway PILOT application, including board questions and concerns, for City Council review and further negotiation.
• Extended the PFKI bid deadline to October 7, 2025, with board authorization to award bids pending budget and city loan confirmation.
• Agreed to schedule a presentation on the business database at the next IDA meeting.
• Took under advisement the draft PILOT policy; further discussion with the council will occur in context of the Treadway application.
• Directed staff to share logo survey results publicly and engage local artists in the redesign process.
• The PFDC meeting was adjourned at 8:36 PM; the IDA meeting was adjourned at 8:48 PM.