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Peekskill IDA adopts higher application fees, escrow language to cover legal costs
Summary
The IDA voted to update its application and fee structure to require larger deposits (including a legal escrow), clarify nonrefundable portions, and allow replenishment if legal or consultant fees exceed the initial deposit; the board approved the fee schedule Aug. 26 subject to minor edits to the application form.
Justin and Abby walked the board through a proposed update to the IDA's application form and administrative fee structure at the Aug. 26 meeting, calling the current application "probably 10 to 15 years old" and saying it needed modernization to reflect changes in the municipal law and the IDA's administrative needs.
Justin explained the reasoning for a larger non‑refundable deposit to ensure the agency can cover legal and consultant costs when an applicant pursues complex PILOT negotiations or bond financings. In one exchange a board member asked whether the IDA could request additional funds if legal fees exceeded the escrow; staff and counsel confirmed that the IDA can require replenishment and that the board can tailor deposit amounts by project size.
Board members parsed specifics of the proposed fee structure (including a $10,000 deposit example for tax‑exempt bond applications with a $7,000 legal escrow component), how much of a deposit would be credited toward closing fees if a deal completed, and the need to clearly label non‑refundable versus escrowed amounts in the application form. The board voted to adopt the updated fee schedule and directed staff to finalize the fillable application form and post it publicly.
Justin also flagged an imminent potential submission by the 901 Main Street owner/buyer and recommended the updated application be available online for September submissions.
