IDA extends Sharon Springs Inc's PILOT--with conditions


By Patsy Nicosia

The Schoharie County IDA has extended a PILOT for the Sharon Springs Inc. project through the end of the year—with conditions including, once and for all, financing.
Supervisors approved the two-year extension at their February meeting before forwarding it to the IDA.
The Village of Sharon Springs, Town of Sharon, and Sharon Springs Central School—all of which would be affected by the tax breaks—have also backed the extension.
Without the extension, SSI’s 2021 PILOT payments would have jumped from $7,680 in 2020 to $48,547 in 2021.
But ground hasn’t even been broken on the Main Street Korean-style spa project and COVID has created roadblocks to securing the necessary financing, according to consultant Sandy MacKay.
According to Mr. MacKay, “Our goal is to have financing in place by late spring of 2021, followed by a one-year construction schedule, and opening of the Baths in the spring of 2022, hopefully by early June.”
IDA Board members are skeptical of the timeline—especially since developers are still working on a to-do list for a possible lender; the “drop dead” extension is contingent on having the loan closed and money in hand by December 31.
As important to Sharon Springs is the list of conditions attached to the PILOT extension.
There are security and safety concerns at all of the former spa hotels now owned by SSI’s Kyu Sung Cho, both from vandals and kids playing inside the buildings and from the weather and the weight of snow on their deteriorating roofs.
Village Code Enforcement Officer Cliff Dorrough has issued orders to remedy violations at both the Adler and Columbia Hotels.
At the Adler, SSI has agreed to re-access the roof in the spring as well as the affected interior ceilings monthly and take whatever steps are needed to assure leaks don’t lead to a building collapse.
Deadline for any roof repairs is July 1.
By May 15, any “potential illicit entry points within eight feet of the ground” will be covered with plywood.
Also, a better system of motion sensors and alerts will be installed inside the building by May 1.
At the Columbia, the roof and security are also concerns and need to be addressed, according to Mr. Dorrough.
While the main and original Columbia Hotel is solid, at least four additions are in need of repair or removal, Mr. Dorrough said; a small structure at the northeast corner of the structure has partially collapsed and should be removed.
Interior review indicates that the original building is structurally sound, Mr. MacKay said in his report; Clemens McGiver is architect for the project.
Needed work identified at the Columbia includes, by May 1, any needed roof repairs to make the building weather-tight; ongoing assessment of the roof with ongoing, monthly inspections and necessary repairs; a detailed inspection of illicit points of entry by May 10 with reinforcement by May 31.
Motion sensor alarms will be installed inside by May 1 and a professional architectural inspection with a written report will be completed by October 1.
Finally, within 60 days of financing approval for the Baths, any portions of the building with a collapsed roof will be demolished and the debris removed.