Ulster Agency Awards $3M Tax Breaks to Twin Lakes Developer

Key Details of the Tax Break Approval

The Ulster County Industrial Development Agency has approved a significant tax break package worth $2.94 million for Arizona Hudson Valley LLC, contingent upon the developer clearing a debt of $102,938.82 in unpaid property taxes at the former Twin Lakes hotel site. This decision was made during a board meeting on Wednesday, July 16.

Jordan Bem, the managing partner of Arizona Hudson Valley, explained that the tax debt stemmed from various challenges at the town level. He highlighted that the project had initially been expected to begin development within one to two years but ended up taking seven years instead, leading to financial strain.

The unpaid taxes cover the period from 2023 to 2025 and include $30,280.40 in charges from Hurley and $121.65 from Rosendale, along with $72,536.77 owed to the Kingston school district. These figures reflect ongoing issues related to changes in Hurley’s budget, particularly concerning the equalization rate.

Understanding Equalization Rates and Their Impact

Hurley’s 2025 budget included a $2.4 million tax levy, representing a 2.19% increase of $51,418. This followed a 2024 levy of $2.35 million with no increase over 2023. The equalization rate, determined by the state Office of Real Property Tax Services, ensures that properties within the same taxing district are assessed fairly. This is especially important when different municipalities update their assessments at varying intervals.

Bem mentioned that discussions with Hurley have involved agreements to lower the value of specific parcels. The proposed resort includes two parcels in Hurley totaling 49.3 acres, a 0.34-acre detached parcel on Lucas Avenue, and a 17.3-acre parcel in Rosendale near the main site. He noted that recent talks with the town focused on reassessing the land, with the board agreeing to adjust the value of the primary parcel.

Conditions for Receiving Tax Breaks

Once the tax issues are resolved, Arizona Hudson Valley will benefit from several incentives. These include $751,334 in property tax breaks over 15 years through a payment-in-lieu-of-taxes agreement, $2 million in sales tax exemptions, and a waiver of $187,500 for mortgage tax.

Michael Ham, chairman of the Industrial Development Agency board, emphasized that the developer must address the outstanding debt before finalizing the tax breaks. “We do not move ahead with a project if there’s any outstanding back taxes,” he stated.

Project Overview and Development Plans

The application for the project was submitted in 2019 by developer Arizona Investissements, aiming to replace the former 14-room Twin Lakes Lodge with 42 luxury camping sites, also known as "glamping." The plans also include two fixed cabins, the renovation of eight existing cabins, six motel rooms, a catering hall, and recreational facilities such as a pool and basketball court.

In the application, developers outlined plans to renovate the main building to include a reception lounge, restaurant, and multipurpose event spaces. Additional features would include a pavilion for 240 people, a 150-person deck with a retractable roof, a 50-person meeting room with a private entrance, and the conversion of six rooms into a spa, pool, geodome, and tennis court.

This comprehensive plan reflects a vision for a high-end resort that aims to revitalize the former Twin Lakes site while contributing to local economic growth.