IDA Approves $31 Million in Incentives for Amazon Project

NEW WINDSOR—One day after the developer secured all approvals from the Town of Wawayanda Planning Board for its 3.2-million-square-foot Amazon fulfillment center in Slate Hill, the Orange County Industrial Development Agency approved by a 5-1 vote approximately $31 million in incentives for the project.

The IDA Board by a 5-1 vote approved up to $31,008,750 in sales and use tax exemptions and a property tax abatement. The Board approved a modified 15-year PILOT (Payment in Lieu of Taxes) agreement negotiated between developer Scannell Properties, Amazon and Wawayanda Town Supervisor Denise Quinn, who stated at an IDA public hearing this past summer that she was withholding her support of the project because she felt it needed to provide more benefits to the town.

The $607-million project is believed to be among the largest private industrial development investments and the largest in terms of scope in the history of Orange County. The facility is expected to be the second-largest Amazon fulfillment center in New York State, surpassing those in New York City.

The term of the PILOT is normally 20 years. IDA officials stated that the 15-year PILOT reduced the amount of tax incentives offered. In addition, the IDA also secured $1.5 million in cash payments for the Town of Wawayanda and up to $1 million to fund the construction of a new ambulance bay as part of the negotiations.

“The agreement is a testament to OCIDA’s commitment to projects that prioritize Orange County communities and reflects Amazon’s investment in the quality of life for residents of the town and the surrounding area,” the Orange County Industrial Development Agency stated in a press announcement.

The new five-story fulfillment center is also anticipated to generate a considerable amount of tax revenue for Minisink Schools, totaling more than $40 million during the 15-year PILOT term. The property currently generates around $165,000 in total property taxes annually. After the PILOT expires, the Town Assessor estimates local schools will continue to receive approximately $8.29 million in tax revenue annually. The new fulfillment center is projected to generate an average sales tax revenue of $238,378 each year.

The project will create 750 full-time jobs within three years of completion and up to 2,400 local construction jobs according to a third-party economic impact study. Under the OCIDA’s local labor policy, 85% of the construction jobs are required to be filled by men and women from the local eight-county region encompassing Orange, Ulster, Sullivan, Dutchess, Rockland, Putnam, Westchester, and Delaware counties. The project was supported by the powerful Hudson Valley Building and Construction Trades Council.

“This project is not only a massive job creator, it will also generate monumental tax revenues for Minisink Schools, the town and the county for years to come,” said Orange County IDA Chief Executive Officer Bill Fioravanti.

Wawayanda Town Supervisor Quinn in an Oct. 23rd letter to residents posted on the town’s website spoke of the merits of the project and noted that the site has been operated as an active quarry for the past 10 years which has generated “truck traffic, noise and environmental disruption.”

She touted the merits of the Amazon project and noted that the Planning Board was “bound by the law, not public opinion.” Quinn closed her letter stating: “Rejecting a project that revitalizes an existing industrial site and finally brings meaningful tax revenue to Wawayanda would be a mistake. This development is an opportunity to replace a low-value, high-impact mine with a facility that contributes to the community’s long-term growth and stability.”

Officials with Scannel Properties could not be reached for comment at press time.

Conor Eckert, chief executive officer of the Orange County Partnership said of the IDA’s actions: “The approved incentive package for Amazon marks a major milestone for likely the largest private investment in our county’s history. The final terms—now a 15-year PILOT, reduced from the original 20-year proposal—reflects a balanced and responsible approach that delivers long-term local value, incorporates community input, and ensures Orange County remains competitive for major employers. This project will generate substantial new tax revenue, create thousands of construction and permanent jobs, and provide meaningful community benefits through targeted investments in public safety, local infrastructure, workforce development and regional partnerships.”

Attorney and Democratic candidate for Orange County Executive Michael H. Sussman, Esq. announced on Oct. 14 that he had filed an Article 78 proceeding challenging the Wawayanda Planning Board’s negative declaration in June. The suit states that the Planning Board’s actions violated the New York State Environmental Quality Review Act. The litigation was filed on behalf of neighbor Diane O’Neill and the Save Wawayanda Inc. and Protect Orange County organizations. Mid Hudson News reports that Sussman expects to file additional litigation to block the Amazon project from breaking ground.