The City of Newburgh Industrial Development Agency (IDA) hosted a public hearing Wednesday to gather input on the proposed mixed-use development at 104 Washington St. and the associated request for financial assistance. The hearing, held at the city’s Activity Center, brought residents, officials, and stakeholders together to discuss the project.

Cherisse Vickers, executive director of the IDA, outlined the plans for the five-story building, which would feature 14 residential units and 8,000 square feet of commercial and retail space on a 5,000-acre site at Washington and Liberty streets. Before the IDA can grant financial assistance exceeding $100,000, a public hearing is required, Vickers said.

The developer has requested a 30-year payment in lieu of taxes (PILOT) agreement valued at approximately $2.4 million, along with a $15,238 mortgage recording tax exemption and a $138,184 exemption on state sales and compensating use taxes. Vickers noted that the requested PILOT deviates from the IDA’s uniform tax exemption policy.

To assess the proposal, the IDA enlisted the MRB Group, an engineering, architecture, and municipal planning firm. Represented by Connor Hartnett, MRB Group conducted a cost-benefit analysis and evaluated the project’s economic impact.

Projected Economic Benefits


Vickers shared highlights from the MRB Group’s findings:
• Construction Phase: 41 direct and indirect jobs generating $2.1 million in wages.
• Permanent Jobs: 15 ongoing jobs with $939,940 in annual wages.
• Sales Tax Revenue: $13,886 from construction wages, $318,142 from new permanent jobs, and $511,795 from household spending.
• Property Tax Revenue: Over 32 years, an additional $324,574 for Orange County, the City of Newburgh, and the Newburgh Enlarged City School District.

To approve the 30-year PILOT, the IDA must adopt a resolution outlining the proposed tax exemption, its terms, and the rationale for the policy deviation. A letter justifying the deviation was approved on Dec. 16, 2024.

Public Reaction and Developer’s Vision

Philippe Pierre, the project developer, recounted the property’s history. The site previously housed a hotel that burned down in the 1980s and was later foreclosed and taken over by the city. It was transferred to the Newburgh Community Land Bank (NCLB), which awarded the redevelopment project to Pierre’s group in 2020. Demolition was completed in 2022, and the site became shovel-ready in 2023, but rising costs have complicated funding.

Hartnett presented detailed financial analyses, including the PILOT schedule, economic benefits, job creation, and revenue generation. The reports are available on the IDA’s website.

Public feedback reflected both support and skepticism.

• “A deviation of 30 years is no small thing,” said former IDA member Yaniyah Pearson. “We’ve approved deviations of 12 or 15 years before, but this is extraordinary.”
• “I’ve followed this project through many challenges. It’s a beautiful design with great potential, but I question the 30-year PILOT,” said Judy Thomas.
• “How did this project escalate to a 30-year request? What precedent does this set for the IDA?” asked Marlon Ramos, former IDA chair.
• “This project would add value to the city and offers a great opportunity,” said Jacob Chai.

Pierre emphasized the project’s community-oriented vision, which includes co-working spaces, retail opportunities, and affordable housing. He described the PILOT agreement as a crucial element of the funding strategy. “This is a project by Newburghers for Newburghers,” Pierre said.

The IDA’s decision on the PILOT request will be the final hurdle for the project to proceed.