WINDHAM — A tax incentive package is on the table for a Windham hotel that was recently sold to a national chain.
The Greene County Industrial Development Agency last week held a public hearing to consider a tax deal for renovations to Wylder Windham, formerly known as The Thompson House.
The hotel opened 140 years ago by the Goettsche family of Windham and was sold June 10 to Wylder Hotels.
The 20-acre resort has eight buildings on the site and all are slated for renovations, along with the pool, landscaping and grounds, Wylder Hotels founder and CEO John Flannigan said in June.
At the public hearing, conducted on Zoom, IDA Executive Director Rene VanSchaack said the project is expected to create 20 new jobs and should generate additional sales tax revenue because the hotel is expected to transition from a summer-only operation to a year-round lodging.
Under the deal, the company would receive a mortgage recording tax and sales and use tax exemption, as well as a Payment in Lieu of Taxes, or PILOT, for the business’ property taxes.
“In addition, the Wylder Group will be required to make a one-time community benefit contribution of $65,682, which will be restricted for use in the redevelopment of the Greene County Tourism Center,” VanSchaack said.
The tourism center is located in the town of Catskill, near the entrance to the New York State Thruway.
One unique feature of the tax incentive package is that many of the renovations slated for Wylder Windham would not have an impact on the property’s assessment value, VanSchaack said.
“A large portion of this project is not items that would normally be subject to increasing your assessment,” VanSchaack said. “While there is a $20.9 million budget, a great majority of this money is going into siding, roofing, HVAC (heating, ventilation and air conditioning) and other systems that would not affect the assessment — they would be considered maintenance of a property or general improvements to a property.”
The sales tax exemption during the construction period is valued at $658,817, VanSchaack said.
Under the PILOT agreement, property taxes would be frozen for a five-year period, and would begin increasing in the sixth year, he added.
IDA representatives met with town officials to discuss the tax package prior to the public hearing.
Windham Town Supervisor Thomas Hoyt threw his support behind the plan.
“I, as supervisor, wholeheartedly support this project,” Hoyt said. “I believe it is a betterment for the town and I see it as an overwhelming positive for the county as well. I know it will succeed.”
VanSchaack said the IDA conducted a post-benefit analysis and determined the results would be positive.
“It is expected that this project would generate significant new sales tax both by virtue of the fact that the property is being upgraded to a much higher status — it will be getting much higher room rates — as well as the fact that they are converting this from a summer operation to a year-round operation.”
The IDA is expected to consider a resolution for the incentive package at its next meeting Thursday. The public comment period concluded Tuesday.