Board rejects tax breaks for Tompkins Terrace
The board of the Dutchess County Industrial Development Agency on Tuesday (May 23) approved Mirbeau Inn & Spa’s request for a 15-year payment-in-lieu-of-taxes, or PILOT, agreement at the Tioronda Estate in Beacon, where the company plans to open a luxury spa and hotel.
Mirbeau’s PILOT means it will pay 50 percent of the taxes on the property’s increase in value for the first five years of the agreement. The percentage it pays will increase starting in the sixth year and continue rising before the property becomes fully taxable beginning with Year 16. Mirbeau will also receive breaks on mortgage and sales taxes.
At the same time, the IDA board rejected a preliminary agreement that would have saved Related Companies $472,000 in sales taxes on the acquisition and interior and exterior costs totaling $44 million at Tompkins Terrace, the 193-unit affordable housing complex in Beacon.
Dutchess County’s Local Development Corp., which has the same board members as the IDA, tabled a separate resolution to issue $25 million in bonds for the Tompkins Terrace project, whose renovations will total $14.5 million.
