Peekskill staff outline $10M Momentum award terms and exclusive negotiations for three waterfront lots

City planning and finance staff told the council the city has received a Mid‑Hudson Momentum award letter for $10,000,000 in reimbursement funding to support up to $20,000,000 in infrastructure improvements intended to enable housing and downtown investment.

"Tonight, we're presenting, the Mid Hudson Momentum Incentive Proposal, which we received, starting last year, $10,000,000 grant to support $20,000,000 in infrastructure improvements," Planning Department staff said, outlining that the grant is reimbursement‑based, requires a minimum 10% equity contribution from the city, and requires projects to commence within two years and complete within six years. Staff said the city must sign the agreement by 06/02/2025, that reimbursement will be paid after eligible expenditures, and that the timing and scale of developer and county contributions remain subject to negotiation.

Carol described staff recommendations to enter exclusive negotiations (nine‑month windows, extendable by council) with selected developers for three city‑owned waterfront commuter lots: Ginsburg Development Corporation (305 Railroad Ave), M Squared (22‑24 South Water Street), and Thoroughbred Exact Capital (28 South Water Street). Finance staff modeled a conservative, worst‑case debt schedule if reimbursements are delayed and recommended staged borrowing through bond anticipation notes to limit short‑term debt exposure.

Council members asked staff for a more detailed debt schedule and scenario analysis showing the effect if Momentum reimbursements were not received on schedule; staff agreed to return with a debt schedule and updated projections.