THOMPSON — Rumors have been swirling online recently that YO1 Wellness Resort and Spa Catskills will soon be shutting its doors and hanging up their yoga mats after an internal memo surfaced that they were reducing their hours.

According to YO1 General Manager David Hayes, those rumors are false and unfounded. “We are not closing; that's the bottom line,” he told the Democrat.

Hayes did confirm that YO1 is reducing their winter hours for all of the buildings.

He indicated that the move was to make the hours they are open more efficient for the business through the winter months.

The 68,000-square-foot retreat center that opened in 2018 features 131 guest rooms, 36 multi-use therapy rooms, an indoor theater, fitness center, juice bar, indoor pool area, and nature trails.

Reducing hours during the winter is not an uncommon practice in the Sullivan Catskills as many restaurants and businesses close for the winter.

Hayes said that YO1 is not for sale. However, as reported in the Democrat in June 2019, the Essel Group is looking for a buyer. The Essel Group is a Subhash Chandra and Family company that owns YO1 Wellness Center through the Veria Lifestyle company.

When asked about the Essel Group sale, Hayes said “I can't speak about the Essel Group. I work for YO1.”

According to an Indian daily newspaper, The Economic Times, the Essel Group needs to raise money to pay off their debts.

Dr. Subhash Chandra, Chairman of the India-based Essel Group, is also known locally in India as the “The Father of Indian Television.”

On Essel Group's website, Veria Lifestyle is listed as a “leading media brand devoted to showcasing the healthy lifestyle and wellness programming.”

IDA

Last year, YO1 had hoped to revitalized and reopen the famous Kutsher's golf course but withdrew their application to the County of Sullivan Industrial Agency (IDA), citing “our focus in entirety is on YO1 Wellness Center.”

The Democrat asked the Chairman for the IDA, Ira Steingart, about the rumors, and he said he had not heard anything about them closing, only about the reduced hours.

The wellness center is an IDA project, and in 2013, Veria applied and was approved for sales tax abatements to rebuild the parcel of land where the wellness center now stands.

In 2017, phase two of the project consisted of building the center, and Veria applied and was approved for sales tax abatement.

In 2019, Veria paid $52,500 in agency fees to the IDA and was expected to do the same for 2020.

Currently, Veria is on year four of their Payment in lieu of Taxes (PILOT) payment schedule and required to pay $2.5 million each year until 2025.

After that, the PILOT payments are calculated by the assessed value of the time and the equalization rate as well as other factors and ends in 2033.