Hudson IDA okays tax break for new hotel
Oct 20, 2020 3:15 pm
Aliya Schneider is reporting for Columbia-Greene Media the Hudson Industrial Development Agency has approved a 10-year tax break for a proposed new hotel located at Union and 7th streets in Hudson. The developer, David Kessler, of Sandstone Partners, must now finalize financing before officially pursuing the Payment in Lieu of Taxes, or PILOT, before the end of 2020, Columbia Economic Development Corporation President and CEO F. Michael Tucker said. Under the PILOT agreement, Sandstone Partners would save more than $750,000 in state and regional taxes. The hotel, tentatively called Hudson House, is expected to be completed by early 2022, Kessler said. “When you’re looking at this, it’s a really strong return for the city,” Tucker said of the agreement. The PILOT agreement provides a construction period of up to three years. The payment structure would start following completion of construction; the payment structure was based on a property assessment of $3,150,000 over the 10 years of the PILOT. The hotel will pay 50 percent of the full tax rate for the first three years, 60 percent for the next two years, 70 percent for the next two years, 80 percent for the next two years and 90 percent for the last year. The building was constructed in 1835, and served as a private home and boarding house for Robert and Sally McKinstry, Kessler said. It was later purchased operated as a Home for the Aged into the 21st century; the building has been vacant since 2014. Read the full story at HudsonValley360 [dot] com.