The City of Newburgh Industrial Development Agency is a public benefit corporation of the State of New York. Our mission is to support and promote economic development and employment opportunities specifically for the City of Newburgh by attracting new companies and industries, as well as assisting existing businesses to grow and expand.

The NIDA is funded by transaction fees paid by the companies receiving assistance and through leases of property owned by the Agency. NOT through taxpayer dollars.

Day to day operations are run by NIDA staff that are overseen by a board of 7 volunteers who are City of Newburgh residents.

We work with various industries that create employment opportunities within the City of Newburgh. Projects need to involve costs of $500,000 or more for sales tax benefits and $2 million or more for a PILOT to make it cost beneficial for the company who will incur associated fees.

An industrial development agency may not, under any circumstances, award grants or make loans of its own monies. The New York State Attorney General has opined (Formal Opinion No. 2014-F1) that an IDA does not have the statutory power to provide grants or loans from its own funds to public or private interests. For more information click here.

Payments-In-Lieu-Of-Taxes is a program designed to provide tax incentives to encourage economic development, particularly in areas where it might not otherwise occur. Instead of paying standard property taxes based on the assessed value of the property, the property owner agrees to make payments based on a negotiated agreement. This agreement is only for property taxes made on improvements of the property. Base taxes do not change.

The NIDA uses a Straight-Lease agreement to provide financial assistance to a developer. In essence, the developer will lease the real property to the NIDA and the NIDA will lease the real property back to the developer. New York State law requires that the NIDA have an interest in the project for the developer to obtain financial benefits. This agreement ends once the PILOT is completed.

The PILOT is reviewed by NIDA staff and by attorneys with a specialty in economic development and public finance. The NIDA enlists independent, third-party specialists to calculate the economic impact of each proposed PILOT to make sure that a company is not unduly enriched. The NIDA presents these findings to the public on its website and at a public hearing.

The company receiving the benefit of a PILOT makes a contracted agreement to create and / or maintain the number of jobs projected in their application. If in any year the company does not meet these job commitments, the NIDA has the option of terminating the agreement and recapturing past benefits. Any recaptured benefits are then remitted to the local taxing jurisdictions, the NIDA is NOT permitted to retain these recaptured benefits.

The New York State Industrial Development Agency Act defines eligible projects as: manufacturing, warehousing, research, commercial or industrial facilities, industrial pollution control, recreation, educational, cultural, horse racing and transportation facilities. In addition, certain health care, college dormitory and housing facilities can be assisted. The legislature has placed prohibitions on assistance to commercial retail facilities, allowing exceptions for tourist destination facilities, projects that otherwise will move out of state, or projects in highly distressed areas.

Please see the NIDA fee schedule here.