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Developer describes multi‑million dollar guarantees as Rhinebeck board confirms escrow and permit conditions
Summary
An applicant described construction completion, tax‑credit delivery and a five‑year operating deficit guarantee backed by personal guarantees in excess of $20 million as planning staff confirmed DOT, Health and village comments have been addressed; the board discussed inspection escrow and enforcement conditions.
At the Nov. 17 Planning Board meeting in Rhinebeck, an applicant presenting a larger mixed‑financing project described financial guarantees intended to ensure construction completion and early operating stability, while staff confirmed that DOT comments have been addressed and plans are with the health department for signature.
A project representative described the financing chain and guarantees: "TD Bank worked at the Raymond James, buys the tax credits... My son and I are the guarantors... We give a construction completion guarantee. We guarantee that the project will be built according to the plans. We give a tax credit delivery guarantee... We also give an operating deficit guarantee for 5 years," said Unidentified Speaker 10 (project representative).
Board members discussed technical conditions tied to the resolution under consideration, including access easements across village‑owned parcels and a stormwater easement. Staff noted they had received a letter from the village confirming its engineered comments were satisfied and that title documents and a letter from the village are on file for verification before final signatures.
Escrow and inspection: the board discussed increasing inspection escrow amounts for large projects. The board referenced Local Law 2 of 2006 (the escrow law) and noted that the draft increases escrow from a prior $10,000 reference to a $20,000 figure to cover extensive post‑construction inspection needs.
Next steps: The board adopted the draft resolution on the condition that outstanding ministerial items be verified (title documents, stormwater agreement). Staff will confirm documentation before the chair signs final plans and the project proceeds to required agency permitting and building‑department review.
