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Mid Hudson Times, Wednesday, September 27, 2017
Mid-Broadway project meets another hurdle
By SHANTAL RILEY
[email protected]
The beleaguered Mid-Broadway project
has encountered yet another roadblock:
a property-deed restriction that requires
action by the Newburgh Housing
Authority to be removed.
“One of the largest city-owned parcels
of the Mid-Broadway development has
a clause in the deed that if it is not used
for municipal purposes, it reverts back to
the Housing Authority,” explained Mill
Street Partners attorney David Cooper to
the Newburgh City Council at City Hall
last Thursday.
Mill Street has proposed to build 91
affordable-housing units and two retail
spaces, including a 12,000-square-foot
grocery store, on city-owned land on
Broadway between Johnston and Lander
streets.
The developer has applied for state
tax credits to fund the majority of
the $31-million project. But, a 30-year
payment in lieu of taxes (PILOT) has
drawn ongoing, intense criticism from
city residents who claim the project
Orange County Farmers Market took place on the proposed Mid-Broadway project site
recently. The project’s future may be in jeopardy due to a property deed restriction.
provides too large a tax break.
Mill Street met with the Housing
Authority in July to discuss the deed
restriction, said Cooper. “The chairman
has indicated the board cannot act on this
request unless and until they hear from
the city that you support our request for
them to release this clause,” Cooper said,
addressing council members.
Passing a resolution “stating that we
support the release of the deed covenant”
would be the “easiest most effective way
of communicating the position of the
body,” city Corporation Counsel Michelle
Kelson told the council.
She underscored potential issues
posed by the restriction beyond the Mid-
Broadway project. “If at any time, the
city wants to do anything (else) with that
parcel, besides having it sit there, this
deed restriction would be a hurdle to
any kind of real estate transaction,” said
Kelson.
Recently, the city council was split
on passing a resolution of support
encouraging the Housing Authority to
release the deed restriction in connection
with redevelopment at the site. Council
members Cindy Holmes, Hillary Rayford
and Regina Angelo voted in support of
the resolution; Genie Abrams, Torrance
Harvey and Mayor Judy Kennedy voted
against it. Councilwoman Karen Mejia
abstained. The split vote effectively killed
the resolution. “It’s like a nightmare
that never ends,” remarked Harvey on
Thursday.
Continued on page 5
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