TOWN OF NEWBURGH – The company that wanted to build a separate Cadillac dealership at the Newburgh Auto Park on Route 17K in the Town of Newburgh, has decided not to move forward with its plans.
Ronald Barton, the principal in Webb Properties, who also owns Barton Birks Chevrolet-Cadillac at the same location, informed the Orange County Industrial Agency that it will not be building the new facility.
The IDA had approved tax incentives for Webb Properties to construct the new building, but County Executive Steven Neuhaus rejected the deal saying the project did not meet the qualifications for IDA financial benefits.
As a result of the cancellation, the company said the county will lose some 100 construction jobs, 12 permanent jobs following construction and no increase in the tax base.
The IDA said at the end of the payment-in-lieu-of-taxes period, there would have been at least $8 million in additional taxable assessed value. The economy will also suffer the loss of sales tax revenue from the new dealership.
The IDA said it moved forward with its financial benefits package with the understanding that that Neuhaus would confirm it. His rejection “came as a surprise to the agency and its staff,” a statement said.
At present, Barton-Burk’s Chevrolet and Cadillac brands are both sold from the same building, but Cadillac wanted its brand sold separately.
“My administration stands with our towns and cities who have called for tax fairness and require local support first, including the Newburgh Town Board that twice unanimously rejected the proposed PILOT,” said Neuhaus. “The absence of local support is a deal-breaker when dozens of other job creators are willing to work with their host communities in order to pay their fair share of property taxes.”
Barton did not return a call for comment on Tuesday.
