|
RCBJ-Audible (Listen For Free)
 |
Howard Phillips Will No Longer Be Able To Hold The Chair Factory Hostage Over PILOTs; Westhab Affordable Development Also Moving Ahead With Purchase & Groundbreaking
By Tina Traster
After a long and protracted battle over tax incentives, the developers of The Chair Factory have found a way to circumvent Howard Phillips’ refusal to agree to a PILOT program that was needed to build an affordable housing project on fallow land in the Village of Haverstraw.
Town of Haverstraw Supervisor Phillips has been standing in the way of the planned project for nearly three years, saying a PILOT program will be economically disadvantageous to the town, and that Haverstraw already has “its fair share of affordable housing.”
But the redevelopment of the village’s waterfront, coupled with the pressing need for affordable housing, has made The Chair Factory a state priority. To the rescue is the Empire State Development (ESD), an economic development arm of New York State, which will acquire the property from the Village and issue a ground lease to the development team. The ESD will also declare itself lead agency for SEQRA (the State Environmental Quality Review Act) on the project this week, according to sources. Under its umbrella, the site will initially become tax exempt, facilitating the developers’ ability to secure financing.
Later, the developers and the Rockland IDA will implement the PILOT (payment in lieu of taxes) programs that the village, county and North Rockland Central School District have agreed to – and offer the same to the Town of Haverstraw.
“The town can either opt out and get zero taxes, or participate in the PILOT,” said one insider.
The ESD will assume primary responsibility for coordinating and conducting the environmental review process under the SEQRA. This designation grants ESD significant authority, allowing it to streamline approvals and potentially bypass certain local land-use and zoning laws. The project, as designed, is zoning compliant.
ESD can issue bonds, grant loans, and offer tax exemptions and abatements to finance the project, acting as a “one-stop shop” for development and funding. ESD centralizes control over the project’s development and environmental compliance, giving it maximum flexibility and minimal local regulatory interference.
“The Chair Factory project is ready to move forward,” said Village of Haverstraw Mayor Michael Kohut. “The state is now the ‘owner’ and it can do what it wants. The Town of Haverstraw can no longer hold up the project.”
While the ESD will hold title to the property, the developer will pay the Village for the property. The ESD will issue a zero-dollar ground lease to the developers and give them control of the project, with the ESD overseeing compliance as the project advances. The acquisition is subject to public process, according to a spokesperson for the ESD.
The town could try to appeal or sue, but it would be an uphill climb because, according to many accounts, the project has Gov. Kathy Hochul’s support.
There is broad support in Rockland County for the The Chair Factory project, which would clean up fallow riverfront property, provide affordable housing, and stimulate economic vitality in the village. However, Phillips has been waging a vociferous campaign against approving PILOTs for both The Chair Factory, and the Westhab project, two affordable housing developments in the village.
MPact Collective LLC, of Huntington Station, Long Island, a co-developer with Penrose NY LLC, on the Chair Factory Project, plans to build a 450-unit mixed-income project (70 percent of units will be affordable including set asides for veterans, seniors and those below an income threshold) on the former Chair Factory site on the 9-acre peninsula jutting into the Hudson River in the Village of Haverstraw. The project includes commercial space and a bi-level structured parking garage for the town’s workforce, veterans, and seniors. The plan also calls for floodplain mitigation, and four acres of public parkland.
The village has earmarked $4.5 million from the 2021 DRI (Downtown Revitalization Initiative) grant for shoreline stabilization projects to stem erosion. Kohut said he’s expecting work to begin in spring 2026.
The Haverstraw Community Chair Factory LLC this week closed on the purchase of nine separate parcels needed for the project: 6 Allison Avenue from Ramon Cruz for $765,000; 8 Allison Avenue from Rockland County Rentals for $890,000; and 9 Allison Avenue from 9 Allison Avenue LLC for $1,280,000. Other parcels were acquired from the Village of Haverstraw, including 87, 89 and 91 Main Street, 30 Liberty Street, and two parcels both at 2 Allison Avenue for $1,276,813.
In January, the Rockland County Industrial Development Agency (IDA) authorized a raft of benefits for the $340 million project, including $1.65 million exemption from mortgage tax recording, an $18.5 million exemption from sales tax, and the approval to participate in a PILOT program.
PILOTs schedule payments to taxing jurisdictions over a long term. They provide certainty of revenue for the county, town, village, and school district, though the amounts are typically lower than assessments based on fair market value. The incentive is necessary to make a project financially feasible for project lenders, not to enhance the profitability to the developer.
The Chair Factory developers have maintained that the PILOT is an essential tool to fund and facilitate the project’s affordable housing initiatives. MPact Collective had said they would not purchase the property until the PILOT, and other state and private funding is in place. The developer plans to pay nearly $8 million for the nine-acre site. The IDA has shown the benefits of the project make sense. According to a study by the IDA, the local benefits, over $500 million, outweigh the cost 55:1.
Because Phillips remained unmoved – he falsely claimed PILOTs will bring certiorari lawsuits and said it would add a financial tax burden to property owners while sidestepping the economic benefits to new development, The Chair Factory needed to find another way to get the project built. Having the ESD step in essentially does an end-run Phillips ability to hold the project hostage.
Rockland County is in dire need of affordable housing. There is a deficit of 4,230 affordable units for those making under $60,000 annually, according to the Rockland County Housing Needs Assessment, prepared by Hudson Valley Pattern for Progress. The report says 57 percent of Rockland homes are single-family detached homes – unaffordable to the average resident. The single-family average sales price is $683,000. A median household income of nearly $100,000 can qualify for a $260,000 mortgage. And fewer than 2 percent of single-family homes sold are less than $300,000 according to the 2022 Multiple Listings Service.
In Feb. 2025, the county awarded $13.5 million in revolving HALO (Housing Actions Loan Opportunity) loans to four developers, three of which are in the Village of Haverstraw. Penrose received a $3 million loan. Westhab Inc., which plans to construct an 81-unit affordable and supportive housing development on a Village-owned municipal parking lot at 63 Maple Avenue, and had been held up by Phillips’ refusal to sign onto a PILOT agreement, is closing on the property this week. In February, it received a $3 million HALO loan.
And in March, New York State Homes and Community Renewal (HCR) issued $12.1 million in Low-Income Housing Tax Credits to Real Estate Westhab Inc. for the affordable rental project, which will be eligible for qualified low-income renters at 60 percent AMI (area median income) or below. The development includes 20 units with supportive services for homeless households.
The 79,000 square-foot development will be a mix of studios, one, two- and three-bedroom units with 143 parking spaces for residents and approximately 82 additional parking spaces for community use. The all-electric project will meet Passive House Standards for Sustainability.
