Peekskill Industrial Development Agency and Facilities Development Corporation Joint Meeting – April 28, 2026

The Peekskill Industrial Development Agency (IDA) and Peekskill Facilities Development Corporation (PFDC) met jointly on Tuesday, April 28, 2026, at 7:00 p.m. in the Common Council Chamber. The board welcomed new member Jeff Grimshaw, approved prior minutes, received monthly financial reports, heard public testimony and board discussion on the Downtown/Waterfront Shuttle funding request, and reviewed updates on 901 Main Street, 41 North Division, and the kitchen incubator (PFKI). No shuttle funding decision was made; the board requested a fuller plan and scheduled a possible special meeting in mid-May.

Consent Calendar

• IDA unanimously approved minutes from the March 24, 2026 Annual Meeting, Finance and Audit Committee, and Governance Committee.
• PFDC unanimously approved the same set of March 24, 2026 minutes.

Monthly Financial Reports

• PIDA reported $221,000 in application and administration fees, including $20,000 from the Children's Village project at 41 North Division and $211,000 from the Treadway pilot closing; $10,000 of the latter was transferred to PFDC for workforce development. Interest earnings totaled $5,092. Year-to-date expenditures were $34,077, including $22,000 in professional fees and $7,657 for the kitchen incubator. Total cash in four bank accounts was $1.1 million, with restrictions (including $629,000 for the incubator) leaving about $454,000 unrestricted. PILOT payments collected and remitted totaled $2.2 million, plus $550,000 from the Pixel Plaza sale.
• PFDC reported $363 in interest and $10,000 transferred from the Treadway closing, for total revenue of $10,363. Expenditures were $4,650. Bank balances totaled $79,898, with $45,000 restricted for Work First workforce development, leaving about $34,000 unrestricted.

Public Comments & Testimony

• Laura Adam, owner of RMS Cruises, and Captain Frank Adam, co-owner, spoke in strong support of the shuttle, describing it as essential for connecting waterfront visitors to downtown Peekskill. They reported more than 7,000 cruise passengers last year, 42 charters already booked for 2026, and international marketing through GetYourGuide. They proposed businesses paying to put logos on shuttle buses as a way to help fund the service and cited examples of visitors spending at downtown businesses such as Tormina.
• They also described partnerships with MTA at Grand Central, West Point, senior groups, and local businesses, and said the shuttle was 'a huge part' of their ability to bring tourists into the city.

Discussion Items

Waterfront Shuttle Funding Request (Correspondence / New Business)

• The BID Director's letter requested support for the Downtown/Waterfront Shuttle; if approved, funds would go from the PFDC to the BID.
• Board member Matthew outlined city marketing efforts tied to the shuttle, including the Destination Peekskill website launch, a FIFA World Cup watch-party promotion with 20 scheduled events, 250th anniversary programming, and West Point promotions. He noted last year's shuttle carried between 900 and 1,000 riders, but the city lacked metrics on rider behavior.
• Board members generally supported the shuttle concept but said they could not commit $12,500 without a more detailed business plan, route map, bus-stop signage, and a budget showing how the service would be sustainable.
• Board member Deborah said she was not in favor of the IDA/PFDC funding the full $12,500, pointing to the financial demands of the kitchen incubator and the PFDC's roughly $34,000 unrestricted balance. She asked for shared funding from the BID or other sources.
• Board member Ellen emphasized that it was May and tourist season was beginning, but also criticized the lack of planning. Another board member said a business seeking $12,500 with only the information provided would likely be turned away.
• During the discussion, it was noted that the BID's budget has not increased in 45 years and that the BID spends about $125,000 annually on farmer's market and flea market activities.

901 Main Street Update

• The 901 Main Street closing was completed successfully, and funds have been forwarded. City staff met with new management and tenants. Future rehabilitation construction will include sales tax exemption work, and the city plans to use its funding to rehab the garage.
• As part of the closing, the IDA/PFDC will receive $10,000 per year for workforce development. The board agreed to form a working subcommittee to recommend how to use these funds.

41 North Division Update

• The Children's Village project at 41 North Division is progressing. The city and Children's Village have reached an impact fee agreement to support services. A cost-benefit analysis is being prepared for the IDA's public hearing, currently targeted for May 26, 2026.
• The project is expected to use historic tax credits, requiring a private owner and a six-year PILOT; after that it returns to nonprofit status, with the impact fee continuing and escalator provisions for city revenue.

Kitchen Incubator (PFKI) Update

• The PFKI team described a revised strategy to keep the project moving within available EDA and state funding. Value engineering identified about $610,000 in potential reductions, split between $485,000 in general construction and $125,000 in equipment.
• Rather than awarding all contracts, the project would be split into EDA 'investment award components': award the general construction contract first and defer equipment purchases. The available funding is approximately $4.1 million, including EDA and NYS grants and required matches.
• The quarterly progress report, semi-annual financial report, and local-share certification (C-451) were submitted to EDA. The next step is obtaining EDA approval for the first component, negotiating a revised general contractor price, and pursuing additional equipment funding from EDA disaster relief, USDA, and other sources.
• The board discussed compensating consultant Lynn Knight for completed and future grant work; a proposal and invoice will be brought back.

Key Outcomes

• No vote was taken on shuttle funding. The board directed that a detailed plan, budget, route map, and signage plan be prepared, and agreed to schedule a special meeting in mid-May for possible approval.
• The 41 North Division public hearing is on track for May 26, 2026, with the cost-benefit analysis to be finalized and notices published in advance.
• A working subcommittee will be formed to develop workforce development spending recommendations from PFDC funds.
• The board will consider compensating Lynn Knight for grant work once her proposal and invoice are received.
• The meeting adjourned at 8:26 p.m.