State Appointed Monitor Vetoes Orange County IDA Incentives for $607-Million Amazon Project

The $607-million Amazon 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.

State Appointed Monitor Vetoes Orange County IDA Incentives for $607-Million Amazon Project
The 3.2 million-square-foot Amazon fulfillment center is proposed to be built on a site on McBride Road in Slate Hill that is currently operated as an active quarry.

SLATE HILL—The project to develop a 3.2-million-square-foot Amazon fulfillment center here is once again facing a significant roadblock. The state-appointed monitor of the Orange County Industrial Development Agency has vetoed an approximately $80-million incentive package and PILOT granted by the IDA for the $607-million project late last month.

Orange County IDA Monitor Brian Sanvidge issued a “Notice of Violation” on Tuesday (Nov. 25) in connection with the project proposed by Scannell Properties of Indianapolis, IN, on behalf of Amazon. The Notice of Violation, obtained by Real Estate In-Depth, states that “the October 23, 2025 Authorizing Resolution relating to the OCIDA approval of the Scannell Properties #600, LLC and Amazon.com Services LLC project is not legally binding or effective and may not be reconsidered by OCIDA for at least ten days or until the next board meeting.”

According to its calendar, the next Orange County IDA meeting is scheduled on Wednesday, Dec. 17. The IDA had authorized $31,008,750 in sales and use tax exemptions along with a 15-year PILOT agreement on Oct. 23. The total incentive package was estimated at approximately $80 million.

The state-appointed IDA monitor was appointed on March 1, 2024 by the New York State Inspector General. New York State Senator James Skoufis, a frequent critic of the Orange County IDA, was successful in having the monitor position created as part of budget negotiations at the time.

Sanvidge in his violation notice stated that he received a letter from Senator Skoufis on Oct. 24 stating that the authorization by OCIDA was “a clear, unequivocal violation of the Uniform Tax Exemption Policy (UTEP)” and that the “OCIDA failed to “assess . . . the quality and salary of jobs projected to be created, onsite childcare provided by the applicant to prospective employees, demonstrated public support for the project, the effect of the proposed project on the environment, and the need for additional municipal services.”

Senator Skoufis issued a statement on social media on the IDA Monitor’s ruling, stating that the IDA incentives are “not warranted or needed.” He said, “I am grateful to the state-appointed monitor, Brian Sanvidge, for his unbiased and thoughtful veto of this reckless giveaway. The monitor’s action protects Orange County's taxpayers and represents exactly why I successfully fought so hard to have a monitor installed: The IDA has lost all trust as they, without exception, continue to put corporate interests ahead of taxpayer interests.”
He added, “While this veto holds the Orange County IDA accountable for their rogue, reckless behavior, it also provides them an opportunity to hit a reset button and reconsider how to proceed in a manner that protects our community's hardworking taxpayers.”

Orange County IDA Chairman Jeff Crist responded to Sen. Skoufis’ statement, stating, “All we are trying to do is use our state-given tools to secure 750 new jobs, more than 2,000 local construction jobs and literally a 4,000% increase in property taxes for what is currently an active quarry. Other IDAs around New York have approved similar incentives for similar fulfillment centers because they too want to create a billion-dollar economic impact for their communities and for the state.”

Regarding the monitor’s “violation notice” Orange County IDA CEO Bill Fioravanti said, “Mr. Sanvidge has sat through every IDA meeting about this application, right through the final approvals, and he has never raised even a minor concern about this project or our process at any point. Only under intense political pressure to chase away Amazon did the monitor consider a veto, yet to this point he still hasn’t cited any specific objections. Instead, this is just a technical argument about whether or not his veto window already closed, which is in dispute.”

Fioravanti concluded: “The IDA is committed to full transparency through this entire process and that will continue as we work through this disagreement.”

Amazon spokesperson Steve Kelly said in reaction to the monitor’s ruling: “This decision from the IDA monitor is wrong procedurally and on the facts. We’re working with the Orange County IDA as we determine our next steps.”

The Amazon 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, if developed, would be the second-largest Amazon fulfillment center in New York State, surpassing those in New York City.

Editor’s Note: This is a developing story. Please check back for further updates.

Author
John Jordan

Editor, Real Estate In-Depth

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