The Kingston School Board has voted 6-3 to oppose a tax agreement worth $21 million over 25 years for The Kingstonian project.
The developers have said the project needs a tax break to be feasible. The Kingston Common Council and Ulster County Legislature have already approved the payment in lieu of taxes (Pilot) agreement; the school board was the third and last to weigh in. The agreement could still be approved by the county’s Industrial Development Agency (IDA), though its chair previously said approval for a Pilot would come only if the three affected taxing authorities signed off on it.
The Kingstonian is a mixed-use $60 million development project proposed for the site of a former parking garage off North Front Street in Uptown Kingston that includes a 143-apartment complex, 32-room boutique hotel, 8000 square feet of commercial/restaurant space, a pedestrian plaza, a footbridge to the Kingston Plaza, and a parking garage with 420 spaces (277 public).
The biggest megaphone?
The December 2 school board meeting kicked off with a public comment period, most of which were regarding The Kingstonian.
“As a member of the Kingston Common Council, I know it is hard to gauge where your constituents actually stand,” said alderman Don Tallermen, who supports the present Pilot proposal “The group with the biggest megaphone and community outreach are community activists. While this is one important voice, they are overwhelmed by numbers of both the business community and residential population.”
Tallermen said that he sees support within his ward for the project, but that residents “don’t take time to voice their support.” He also claimed that 500 letters were sent to the school board from the business community. Tallermen believed that voting yes on the tax break would “help the entire community.”
The Kingstonian developers also submitted a comment for the school board to consider.
“There seems to continue to be many misconceptions,” read the statement. “The discussion somehow continues to be about new tax revenue you are not getting because of the Pilot, and what is totally getting lost is the new tax revenue you will get because of the project.”
Trustees weigh in
Before the school board met last week, board of education president James Shaughnessey released a formal statement expressing opposition to the project. At the meeting, Shaughnessey restated most of his letter. He said such tax breaks have a negative impact on school district finances. He also compared the taxes that would be paid by the project to other comparable apartment complexes, which he said pay anywhere from $1,551 per unit (Fairview Gardens) to $2,431 per unit (163 Hurley Avenue) annually.
“If the owners of the entire [The Kingstonian] complex are paying only $24,000 per year in school taxes, the renters and hotel guests are not paying their fair share,” said Shaughnessey.
“I’m not against people making money. I prefer it not to be done at the expense of schoolchildren.”
At a November 18 meeting, the Kingston school board reviewed a revised Pilot agreement, presented by deputy county executive John Milgrim and Rose Woodworth, CEO of the IDA. It withheld a vote.
During the December 2 meeting, trustees considered postponing the vote yet again to see whether they could create a community benefit agreement. But the majority of the board didn’t want to withhold a vote any longer.
Board members Nora Scherer, Steven Spicer and Suzanne Jordan voted for the Pilot. “2020 has been quite a year,” said Scherer. “In the midst of it all, [there is] a request to vote on a deviated Pilot to fund a combined public-private project, that perhaps doesn’t deliver all the requested parking promise, that maybe doesn’t bring with it the number of jobs at living wage salaries that we’d hope – but it does bring a number of job opportunities to a community that is in need of opportunities.”
Jordan said while she was not “philosophically” in favor of a 25-year Pilot for “many reasons,” she looked at it through a wider lens, comparing it to the past discussions regarding the renovations of the Kingston High School, which she said she had not supported at first but have been a “miracle” once implemented.
Spicer asked, “Is this the time, the movement, the day, we take a stance against Pilots? Versus the hundreds of jobs we could bring?”
Board members Cathy Collins, Robin Jacobowitz, Herb Lamb, Priscilla Lowe, James Michael and Shaughnessy voted against it.
“I understand the appeal of building on an underused piece of property and I appreciate the benefits The Kingstonian may provide uptown Kingston,” said Collins. “I too want a vibrant city with diverse business and housing options. I can’t help thinking it may be time to reprioritize … Instead we should seek projects and project partners that are interested in maximizing the benefits for schools.”
Jacobowitz said that the exchange of parking spaces for education tax dollars is not a “justifiable, fair trade.”
While Lamb said that he was in favor of The Kingstonian being built he couldn’t vote yes for the tax break.
What’s next?
Despite the no vote from the school board, the IDA could still approve the plan, seek revisions in it as suggested in the modified plan supported by County Executive Pat Ryan, or some other course of action. .
“I have no idea what the plan will be, if anything,” said IDA executive Woodworth following the decision. “It’s an internal policy to get the approval from all three taxing jurisdictions before doing any Pilots or incentives for housing projects. But it’s not a New York State law. So, technically, yes, we could proceed anyway. As of right now, I’m not sure.”
“I believe that the Industrial Development Agency can act in a positive way on this and approve the Pilot even if the school district came back with a negative response,” Ulster County Legislature minority leader Ken Ronk had said following that body’s last meeting. “Two of the three taxing jurisdictions have overwhelmingly approved it.”
The IDA’s next meeting is on Wednesday, December 16.
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