MONTICELLO -- At a recent meeting of the County of Sullivan Industrial Development Agency (IDA), the decision of whether to extend the Sales Tax Abatement Period for the Veria Lifestyle Inc project, more commonly known as YO1, from October 1 through March 31, 2021, was on the table. Their extension was approved, on the condition they handle two unresolved items.

IDA Counsel Walter Garigliano said that the IDA has an outstanding, previously approved amendment to the project's Payment In Lieu of Taxes [PILOT] that's never been resolved on YO1's side. This involves a resolution the IDA board adopted on April 13, authorizing the suspension of the project's full-time employment goal for the periods 10/1/19 to 9/30/20 and 10/1/20 to 9/30/21. They are asking the project to execute the PILOT amendment as described in the resolution.

There is also a previously approved issue with YO1's original application, which did not include the name of the entity that ultimately purchased the wastewater treatment plant. The project filed an application saying they were going to purchase those 21 parcels and when it came time to close, according to Garigliano, they got advice from someone to put the wastewater treatment plant in a separate entity. Therefore, the project needs to add Sullivan Infra West Inc. [the counterparty of the wastewater treatment plant] to the PILOT.

“Both of them are to their benefit,” said Garigliano. “We just haven't been able to get anybody to focus on it.”

YO1 has had a recent change in management, and the IDA plans to meet with the new general manager.

The project has remained current with their PILOT escrows, as well as their sales tax reports and fees.

COVID-19 regulations

Garigliano said the board needed to make a policy decision on how to handle changes to a project occasioned by the new regulations issued by the Department of Health related to COVID-19.

“In some cases like the casino, it was built with equipment that's compliant, so there's nothing they need to do to upgrade their ventilation systems,” Garigliano said. “That's not the case at YO1. They have those 60-odd interior no window spa treatment rooms. They need to purchase and install an upgraded ventilation system for the salon and for those spa treatment rooms in order to reopen. What is going to be our policy on those types of improvements for a project that is still open? In other words, they're still in the construction phase of this project.”

District 7 Legislator and IDA Board Member Joe Perrello said that if YO1 had to make those improvements to comply with today's environment, he felt the board should extend their benefits so they can do business and employ people. “That's what it's all about,” he said.

Garigliano said YO1 would then need to amend their project, which could be done through a letter application.

“Because when we approved their project, we didn't approve COVID-19 compliant ventilation systems,” said Garigliano. “So we're going to have to get them to ask us that question. And we're going to have to then respond to their, let's call it a method application, to include those improvements.”

He later added, “If they want to take a sales tax abatement on the new ventilation equipment that was not part of their approved project, but is required for them to reopen, echoing Joe's words, that's what we're here for, to help them get open.”

Those COVID-19 related changes will be discussed at a later date, but in the short term, the extension of YO1's sales tax abatements were approved, so long as they remedy the two previously mentioned items in regard to their PILOT.

Earlier this month, the Democrat reported that YO1 has announced plans to reopen in October.