By Tina Traster

After a long and protracted battle over tax incentives, the developers of The Chair Factory have found a way to circumvent Howard Phillips’ refusal to agree to a PILOT program that was needed to build an affordable housing project on fallow land in the Village of Haverstraw.

Town of Haverstraw Supervisor Phillips has been standing in the way of the planned project for nearly three years, saying a PILOT program will be economically disadvantageous to the town, and that Haverstraw already has “its fair share of affordable housing.”

But the redevelopment of the village’s waterfront, coupled with the pressing need for affordable housing, has made The Chair Factory a state priority. To the rescue is the Empire State Development (ESD), an economic development arm of New York State, which will acquire the property from the Village and issue a ground lease to the development team. The ESD will also declare itself lead agency for SEQRA (the State Environmental Quality Review Act) on the project this week, according to sources. Under its umbrella, the site will initially become tax exempt, facilitating the developers’ ability to secure financing.

Later, the developers and the Rockland IDA will implement the PILOT (payment in lieu of taxes) programs that the village, county and North Rockland Central School District have agreed to – and offer the same to the Town of Haverstraw.

“The town can either opt out and get zero taxes, or participate in the PILOT,” said one insider.

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