Financing details
What made Diamond Mills feasible for the developer was the availability of a $8.8 million “Recovery Zone Facility” bond, offered through the Federal Stimulus bill, which is exempt from federal income taxes. Normally, such bonds are offered by the Ulster County Industrial Development Agency only to manufacturers and nonprofit organizations, but the federal legislation made it available to any new construction project, said Lance Matteson, president of the Ulster County Development Corporation and CEO of the Ulster County IDA.
“This is a success story,” he said. “Fairly low-interest debt capital was available to a developer, which helped make the project feasible. All the principal is private,” putting the full risk on the developer.
Diamond Mills also received a $780,000 grant from Empire State Development through its “Restore New York” program, designed for the development of old industrial sites. The project is also benefiting from a Payment In Lieu of Taxes (PILOT) in which it will pay no taxes on the new assessed value (but will pay the existing property taxes) for the first three years, after which tax payments will be phased in, up to 100 percent in the eleventh year.
Matteson said there’s definitely a need for such a project. “It’s kind of embarrassing that people in Ulster County have to go elsewhere if their event is going to be large,” he said. “It’s a tough environment for financing things like this and definitely an entrepreneurial leap. It’s a strong statement of faith in Ulster County and Saugerties.”
Front desk clerk Ann Yerick, who formerly worked for the school district and has lived in Saugerties all her life—her father was mayor for 12 years—said she’s also happy about the project. “It’s a really welcome addition to Saugerties.”
Walsh said she’s run ads for Diamond Mills in local and regional publications and in Amtrak’s Arrive magazine. She’s marketed the property to event and wedding planners and corporate business groups and is also working with Ulster Tourism. Currently the property is running a promotion in which the rate for two nights is $425 plus a free in-room champagne breakfast (continental breakfast is included in the normal rate). A weekend ski package, with discounted lift tickets and free champagne, is also being offered.
In the low season, room rates range from $275 to $325, which increase substantially in the peak summer season, starting at $412.50 a night, with a two-night minimum on weekends, and peaking at $577 for a suite.
Struzzieri said by and large the planning process went smoothly. Former town supervisor Greg Helsmoortel “was pro-business and pro-growth. He was a valuable ally,” he said. He said the environmental review process resulted in some compromises, such as adding a brick wall around the 220-space parking lot along the street side and creating a public access viewing area for the waterfall.
Struzzieri plans to power the complex with hydropower from the dam. The company has submitted an application to the Federal Energy Regulatory Commission for a license to construct a small power plant, complete with a net meter enabling Diamond Mills to sell power back to the grid. (The micro-hydro project was made possible by a new law passed by the New York Legislature, which allows for net metering for projects with a capacity of two MW or less.)
Struzzieri lives with his wife and three children in a house outside the village. He’s originally from Long Island. His connection to the area is through his wife, who grew up in Hyde Park. He said part of his motivation for the project is that “it’s home. My hope is that this community continues to become a better place to raise a family. There has to be some growth.”
The only small ihave in my mined first thing it look very nice’ with confort bed room then I espect it have good services customer care iwish you people all the best in your bussines and GOD bless the work of your arm have anice job.
The Tavern is a fantastic addition to the culinary world in the area. The staff goes “above and beyond” to make sure customers are happy. The food speaks for itself…THE BEST IN THE AREA! However, the food would only be secondary if it was not for the wonderful management who have out done themselves with the pressure of opening a new restaurant. This entire team, The Chef, his staff, management, servers etc deserve the credit for making Diamond Mills Tavern a success!!!! To find people in this area that are as devoted as the employees of Diamond Mills is rare. Tom, Chef, Lisa, Bridget, Bonnie & Sam definitely have what it takes to make this place a success.
Great article! The hotel and tavern are amazing! I am very grateful to have it in our village!
“Pro Business” is a good thing!
What do I think about Diamond Mills? Its absolutely amazing…..thanks to Kimberly R. Ryan, a Saugerties native, and an associate of the architectual firm. She was the brains and brawn behind the designing and building of this hotel. Way to go Kim…..your hard work, dedication and brilliance should not go unnoticed!
My wife and I were looking at real estate in the area and visiting some old haunts. We found ourselves at the end of the day in Hudson needing a place to stay the night. In searching the web we came across Diamond Mills Hotel and Tacern in Saugerties. It sounded good so we zipped down there and were amazed by how well appointed the newly built hotel was. After freshening up we headed to the tavern and continued to be pleasantly surprised by the upscale nature of the place. Tastefully designed and decorated the Tavern (as did the hotel room) overlooks a dramatically lit waterfall. A polite and professional staff proceeded to serve us a delicious meal. Our one regret was not leaving enough room for dessert. The prices were a bit high, but we knew that going in as we were looking for an evening quality, upscale dining and accommodations. You get what you pay for and Diamond Mills did not disappoint