Poughkeepsie IDA approves incentives for Rip Van Winkle redevelopment; board member recuses

The Poughkeepsie Industrial Development Agency voted April 9 to authorize financial incentives for the Rip Van Winkle redevelopment, including a PILOT (payment-in-lieu-of-taxes) arrangement and sales and mortgage tax relief; Board member Matt Diggins recused himself from the vote citing a conflict of interest.

The resolution authorizes the IDA to offer tax and mortgage relief to the Rip Van Winkle project, a large affordable-housing rehabilitation the developer said would include an estimated $90,000,000 in reinvestment to preserve 179 units across roughly 221,000 square feet. ‘‘I will not be voting on this. I have a conflict with this,’’ said Matt Diggins before leaving the room and returning after the vote.

The developer representative, identified in the meeting as Nick of Relayered Affordable, told the board and public that tenants temporarily relocated during renovations will be returned to their same units and that affordability restrictions and clawbacks will remain in any legal agreements. ‘‘We specifically spelled out ... tenants that are in this building are put back into the same unit when they’re temporarily relocated,’’ Nick said, adding that the project team has committed to MWBE targets and a living-wage standard for construction workers.

Nut graf: The agency’s authorization moves a large, long-discussed renovation forward by allowing the IDA to provide incentives the developer says are necessary to make the financing work. Board members and the developer framed the action as a public-private partnership to preserve affordable housing on the city waterfront; members of the public sought assurances about tenant protections, relocation logistics and ongoing accountability.

In discussion, board members emphasized housing stability and community benefit. One board member said the project is ‘‘a long time coming’’ and described it as ‘‘a good plan ... to rehab this building for the tenant that’s in there.’’ The developer provided specifics on tenant relocation: temporary hotel housing with kitchens, coordinated transportation, individualized assessments beginning about 90 days before scheduled moves, two staged temporary moves (one brief abatement move and a longer up-to-60-day unit renovation move), on-site storage and optional full-service packing and moving assistance.

The developer described the scope of the renovations to include central cooling, new kitchens and bathrooms, individual hot-water heaters, upgraded stairwell reinforcement, new triple-pane windows, a new three-inch EIFS facade and a rooftop or parking-lot solar array the team said would make the building net carbon neutral when finished. The team also discussed an internal MWBE target (they said over 25% of contracted workers would meet an MWBE profile) and a living-wage commitment (the developer said the standard would be about $25 per hour).

Public commenters pressed the IDA and developer on several points. A tenant asked whether there is a guarantee of return to the same apartment; a tenant described the project documents as lengthy and asked how the agency would ensure long-term accountability. The developer and agency chair pointed to documented commitments, clawback provisions in agreements and ongoing tenant engagement. The developer said staff and the mayor’s office had been involved in several meetings and that a public hearing had been held in March.

Votes at a glance - Authorizing resolution for Rip Van Winkle (authorizing IDA financing, PILOT, sales and mortgage tax relief): approved; Matt Diggins recused (recusal recorded; specific vote tally not specified in the transcript). - Amendment to IDA annual fees (new annual fee structure to align with surrounding IDAs: $2,500 for projects with total project cost up to and including $25,000,000; $5,000 for projects over $25,000,000): approved. - Resolution to approve PARIS, investment and procurement reports and authorize filing by the CFO (file deadline noted as 03/31/2025): approved. - Resolution to approve the annual independent audit and post it to the IDA website: approved. - Resolution to pay listed invoices described in the treasurer’s report (reimbursements for postal and software expenses, as listed in minutes): approved.

The board’s materials and the developers’ cost-benefit analysis were described in the meeting as posted to the IDA website for public review. Agency staff said the developer’s commitments and the agreements’ enforcement provisions will be part of the legal documents recorded when incentives are finalized.

Ending: The IDA’s action clears the way for the developer to proceed toward financing and construction steps; the agency and developer said tenant outreach and coordination would continue in the weeks and months before any move-outs. The meeting also approved routine administrative items including audit filings and fee amendments earlier on the agenda and then adjourned.