IDA claws back benefits from 3 projects after monitor’s report
The Orange County Industrial Development Agency has moved to terminate or seek repayment of tax incentives from three economic development projects following a report last fall that found widespread job creation shortfalls among businesses receiving public subsidies.
The actions stem from a November 2025 report by the OCIDA’s independent monitor identifying 17 projects that had failed to meet employment goals tied to their Payment in Lieu of Taxes agreements. The report drew calls from elected officials, including state Sen. James Skoufis, for the agency to recover the tax savings those businesses had received.
After requesting updated job figures from the companies involved, the OCIDA determined that only three projects — CRH Realty III, CRH Realty VIII and Glen Arden — were eligible for benefit recapture under agency policy.
The PILOT for CRH Realty III, a building owned by Crystal Run Healthcare in Monroe, was terminated Jan. 21. OCIDA Chief Executive Officer Bill Fioravanti said the agency’s committee is not recommending any further financial recapture from that project, citing broad recruiting difficulties in the healthcare sector.
The PILOTs for CRH Realty VIII, another Crystal Run Healthcare property, and Glen Arden both expired at the end of 2025. Fioravanti said the agency lacks legal grounds to pursue repayment from CRH Realty VIII because the original agreements did not include recapture provisions beyond the incentive period.
Glen Arden presents a more complex situation. The facility had already been under IDA scrutiny before the monitor’s report, and Fioravanti said the agency intends to seek repayment to the extent permitted by law. However, that effort is complicated by a pending sale to a new operator that involves refinancing of bonds used to fund the project and a plan to repay taxing jurisdictions that have not received PILOT payments in recent years.
Several additional projects were found to be below their employment targets, but none fell short by more than 10% of the required total. Under OCIDA policy last updated in February 2025, benefit recapture is only triggered when a project fails to maintain at least 85% of its employment requirements. None of those projects crossed that threshold.
Beyond the job number deficiencies, the monitor’s report raised concerns about the agency’s oversight practices. All three projects subject to action had been reporting low employment figures for years before the monitor flagged the data, and several other projects had submitted inaccurate numbers for extended periods without agency intervention.
Fioravanti said the OCIDA has been working with the monitor to build a tracking system designed to catch such problems earlier, describing it as a tool that provides an at-a-glance view of employment reporting trends over time.
The agency’s relationship with the independent monitor remains strained. The OCIDA is engaged in ongoing litigation seeking to invalidate the monitor’s veto of a tax incentive package for an Amazon warehouse in the town of Wawayanda and previously allocated $100,000 for lobbying against renewal of the monitor’s position.