Kingston, NY – The Ulster County Industrial Development Agency (“UCIDA” or “Agency”) successfully defended a dispute over sales and mortgage tax benefits applied for by project applicant 2-4 Kieffer Lane, LLC (“Kieffer”). The Appellate Division, Third Department, released its decision on the lawsuit commenced by Kieffer against the Agency; the project applicant sued after the Agency, by resolution, decided not to provide any financial assistance in connection with its crane operations destined for the Town of Ulster.
The Court’s decision completely upheld the Agency’s determination not to grant any benefits to Kieffer. The Court’s finding held that any granting of benefits is discretionary, regardless of whether the proposed project qualifies for IDA benefits. Randall Leverette, Chair of the Agency, was pleased with the Court’s findings, and commented that “The Agency is delighted with multiple Court findings and was confident from the outset that it had acted in the best interest of Ulster County residents. It’s simply not enough for a proposed project to apply and qualify for exemptions and IDA benefits; inducements are discretionary and a project must actually benefit residents of Ulster County as outlined in the IDA statute.”
Not only did the Appellate Division support the determination by the Agency not to grant any IDA benefits to Kieffer, the Court also ordered it to pay the Agency’s attorney fees. Said Leverette, “It is unusual for a Court to award attorney fees in these type of cases and the Court’s decision reflects the strong language contained in the documents protecting the Agency’s position.” The Agency is represented by Hodgson Russ LLP, its local/bond counsel.