MONTICELLO, NY — Meeting on April 20, members of the Sullivan County Industrial Development Agency (IDA) approved tax abatement assistance for the Amytra LLC resort project at the former Eldred Preserve, which is identified as The Homestead in an updated cost-benefit analysis prepared by Shepstone Management Co.

The unanimous decision came about five minutes into the meeting, without board discussion, following a brief recap of the project history by IDA attorney Walter Garigliano.

The $12 million project includes reconstruction and equipping of a new restaurant motel facility, to include approximately 3,064 square feet of event space, approximately 6,953 square-feet of office space and approximately 29,536 square-feet of accommodation spaces. Construction is to be completed this year, and the new facility, creating some 24 new jobs, will open in 2019.

Three limited liability corporations are involved in the project, all of them owned by Daniel and Joan Silna of Carlstadt, NJ.

All told, IDA assistance will provide some $2.5 million in state, county and local tax abatements on a schedule running through 2038. These include $600,000 in state and county sales taxes, $120,000 in mortgage tax abatements and $1,777,860 in real property tax abatements.

There will be a five-year 100% tax abatement against new improvements. However, Amytra will make payments in lieu of taxes (PILOT) on the assessed property value prior to demolition, which was $1.2 million. Following the first five years, its new value will be assessed on a pro-rated scale until the abatements expire in the 15th year of the agreement.

The application initially received some local criticism; as the level of property tax abatements was not initially disclosed, a complete exemption was widely assumed. Highland Councilman Jim Hanson spoke during IDA’s public comment period. Hanson was very disappointed with IDA’s handling of its announcement and the failure of any members to appear at the public hearing.

He said that while the Amytra proposal looked like a good project, he wondered about its impact, since Highland already has restaurants “hanging on by their fingernails.”

Speaking of the Eldred Central School District’s distressed financial situation, Hanson commented that “they’re letting Kindergarten teachers go while you’re stretching out these abatements for 15 years.”

Some IDA members said privately that in the past, its members did routinely visit affected towns to explain the process. They admitted that the local notification process could have been handled better.

Silna reportedly has a net worth exceeding $100 million. Asked whether IDA assistance was appropriate for applicants who apparently have independent means, IDA Member Ed Sykes Sr. said, “We want these projects to work. People who have demonstrated successful track records are the best candidates.”