County, city want what they say Steve Aaron owes them

Sottile, who reached out to IDA officials to ask them to hold off on the default notice, said it was inappropriate for the agency to take enforcement action while the assessment issue remained before the courts.

“In fairness, he deserves a definite answer from the courts instead of just saying, ‘We’re going to revoke your PILOT,” said Sottile. “(The IDA’s) energy could have been put to better use.”

In January, meanwhile, Birchwood Village will become eligible for foreclosure by the City of Kingston for nonpayment of taxes. Mayor-elect Gallo conceded that it would be a drastic step, but one that he would not hesitate to take if the developer remained delinquent on the PILOT payments.

“If the default continues, the city will do everything necessary to protect taxpayer’s interests including but not limited to foreclosing on the property,” said Gallo. “I hope it doesn’t come to that but we have a fiduciary responsibility to the taxpayers.”

Another project?

The dispute with the IDA comes as Aaron, who has developed senior and low-income housing in Kingston, the Town of Ulster, Saugerties and Port Ewen, prepares to move ahead with his latest project. The Cooperage, a proposed 72-unit $16 million senior housing complex at the end of Bruyn Avenue, won approval from the city planning board last month. The impasse over the back taxes is unlikely to impact construction of new complex, unless Aaron moves to apply for a PILOT or some sort of financial benefit from the city. Gallo said that he would not consider any kind of city-held benefits for the developer while he remained in default.

“If he wants to do business in the City of Kingston, he’s going to have to resolve the issue of the default and the tax issue,” said Gallo.

Aaron did not return phone calls seeking comment for this story.