Peekskill IDA and PFDC Joint Meeting - October 28, 2025

The Peekskill Industrial Development Agency (IDA) and Peekskill Facilities Development Corporation (PFDC) held a joint meeting on Tuesday, October 28, 2025, at 7:15 PM in the Common Council Chamber. The meeting covered financial reports, budget approvals, updates on the kitchen incubator project, insurance renewals, a PILOT application for 901 Main Street, and a new proposal for a museum at 47-49 South Water Street. The meeting was adjourned at 8:10 PM.

Consent Calendar

• Approved minutes of the September 30, 2025 IDA and PFDC meetings unanimously.
• Approved the FY26 budgets for both the IDA and PFDC as presented by Abby, with the note that the LDC (Local Development Corporation) budget (all zeros) was also approved by voice vote.

Discussion Items

• Monthly Financial Report: Abby presented the IDA financial summary as of October 24, 2025. Revenues included $49,000 in application/administrative fees (partly from Treadway bond modification), $17,700 in interest, and $40,000 appropriated from fund balance for the kitchen incubator. Expenditures included $53,000 in professional fees, $33,129 spent on the kitchen incubator to date (with $7,000 remaining of the $40,000 appropriation). The board noted that the $30,000 Treadway fee is restricted and should be clearly marked as such to avoid implying a false surplus. PFDC financials showed $1,147 in interest and $4,271 in professional fees.
• Draft FY26 Budget Review: Abby presented the draft FY26 budgets. IDA budget projects $55,000 in application fees, $24,000 interest, $645,000 appropriated fund balance (remaining from the $850,000 for the incubator), and $36,300 in rental income. Expenses include $13,000 for Matthew's stipend, $65,000 for professional services (reduced from $70,000), $1,500 for QuickBooks, $2,500 for memberships, $295 for conferences, $3,500 for audit, $30,000 for insurance (significant increase from $11,000), and $645,000 for the kitchen incubator. PFDC budget projects $10,000 in interest, $35,000 appropriated for workforce development, and anticipates receipt of $2.3 million from federal EDA grant, $995,000 from state grant, and a $1.4 million loan from the city. Both budgets were approved.
• Old Business - PFKI (Kitchen Incubator) Update: Chair Matthew reported that the rebid for Contract 1 (general construction) opened October 7, 2025, with a bid of $4.7 million. Combined with Contracts 2 and 3, the total exceeded available funds. Iron Sword, the lowest bidder (also an SDVOB), proposed deducts to reduce costs by nearly 8%, bringing the total within funding. Deducts include deferring construction of a dry storage extension and deferring purchase of separate walk-in freezers/coolers for food trucks. Temporary dry storage will use the truck bay; food trucks will use existing walk-ins in the North Garage. The project sponsor clarified that the deferred items can be accommodated with initial operations. The board agreed to authorize submission of the bid package to the EDA for permission to award, pending city council concurrence on converting the $1.4 million float to a permanent construction loan. A memo will be prepared for the November 10 city council meeting. The board also requested an updated operating pro forma for the next meeting.
• Old Business - 901 Main Street PILOT Application Update: Matthew reported that Treadway (the developer) has proposed zero PILOT payments for a housing conversion project at 901 Main Street (formerly Courtyard Housing). Multiple meetings have occurred with city assessor, city manager, corporation counsel, and the developer's attorneys. The city and IDA are negotiating for some PILOT payments and potentially contract-based payments for services (e.g., transportation, food) that could count as material commitments. A response letter summarizing deal points is being prepared. The board expressed a need to be kept informed and requested to see the draft correspondence before it is sent. The chair noted that a public hearing may be needed in late November or early December if a deal is reached.
• Old Business - Draft PILOT Policy and UTEP Update: Matthew reported that the city manager has asked for a revised draft PILOT policy, incorporating lessons from the 901 Main and other projects. Categories (e.g., housing tax credits, industrial, target neighborhoods) and deviation procedures are being defined. The policy discussion is ongoing and expected to involve joint IDA/council discussions.
• Old Business - Liability Insurance Renewals: The IDA and PFDC received a quote for $30,000 for property and liability insurance (up from $11,000 the previous year). Justin, legal counsel, explained the increase is due to previously inadequate coverage, including new policies for PFDC and affirmative coverage for properties like RESCO and the marina. The board directed staff to solicit additional quotes before binding, but noted that binding is needed immediately. A discussion ensued about potentially being reimbursed by the city or RESCO for insurance costs related to those properties.
• New Business - 47-49 South Water Street (formerly Peekskill Brewery): Matthew reported a new proposal from film producer Bill Diamond to relocate a horror genre museum (Famous Monsters of Filmland) from Plainfield, CT to the former brewery building. The museum is a permitted waterfront use. The proponents have not yet provided a pro forma or business plan. They seek potential tax exemptions and grant funding. The board agreed to continue vetting and may invite a presentation at a future meeting if progress is made.

Key Outcomes

• Approved minutes of September 30, 2025 IDA and PFDC meetings.
• Approved FY26 budgets for IDA, PFDC, and LDC (the LDC budget as all zeros).
• Directed submission of the kitchen incubator bid package to the EDA for permission to award, contingent on city council approval of loan conversion.
• Requested an updated operating pro forma for the kitchen incubator by the next meeting.
• Directed staff to solicit additional insurance quotes before binding the $30,000 policy.
• Authorized preparing a response letter to Treadway for the 901 Main PILOT negotiation, with the draft shared with the board.
• Noted that the PILOT policy update will be discussed jointly with the city council.
• Agreed to continue exploring the museum proposal at 47-49 South Water Street.
• No executive session was held.