Mayor Randy Casale

City of Beacon
One Municipal Plaza
Beacon, New York 12508
845-838-5010 - Office
845-838-5012 - Fax

February 2, 2017

The Honorable Andrew M. Cuomo

Governor of New York Stat~
State Capital Building
Albany, NY 12224

Re: Empire State Development Corporation/ Beacon Correctional Facility RFP

Governor Cuomo:

On November 12, 2014, Empire State Development Corporation (ESDC) released a Request for
Proposals (RFP) in an effort to dispose of the Beacon Correctional Facility, which closed in 2013 .
Prior to its release, ESDC held a number of informational meetings with the undersigned,
heretofore referred to as the "Committee," to provide guidance through the process.
First and foremost, the Committee, and particularly the City of Beacon, are very pleased with the
state's collaboration to convey a portion of the parcel for municipal use. The Committee also
appreciates ESDC's compliance with the Committee's request to discourage or not consider
exclusively residential use.

Unfortunately, and as we understand it, ESDC only received one "qualified" proposal, from a not-
for-profit sponsor, "The DOE Fund." The City of Beacon was initially open to the proposal if
terms of a PILOT were negotiated and a School Program was created. The PILOT and the School
Program were never developed. In addition, the Committee members had questions about terms
and conditions that were not satisfactorily addressed. These open issues led the committee, as a
whole, to consider the proposed use of the property, as set forth in this single proposal, neither to
be the highest and best use of the site, nor to be consistent with ESDC's statement of commitment
to attracting job-generating uses to the site.

Furthermore, it is our understanding that the state will not receive any money from the sale of this
site to the single respondent. In addition, the $6 million from the State and Municipal Facilities
Program earmarked to minimize the impact of the closure on the community and to redevelop the
site will go to the respondent for their project. This represents an incentive of more than $60,000
per job based on the actual number of full time jobs the respondent has proposed. Additionally,
the respondent may be eligible for other state incentive programs for their project and from our
understanding has applied for Federal Funding.

Although the ESDC has not yet rejected the proposal, we ask that the ESDC do so and work with
the Committee to attract the highest and best use of the site. The Committee has made this request
of the ESDC more than once.
The Committee and the ESDC agree that the Beacon Correctional site has several weaknesses.
However, the Committee believes an opportunity exists to correct one of the major weaknesses.
Storm water nmoff from the state's adjacent Fishkill Corrcctionnl Facility, Downstate Conectional
Facility and New York State Thruway (I-84) cause several wet areas on the site. The City
previously received the NYS Department of Corrections and Community Supervisions (DOCCS)
"Inflow & Infiltration Reports" for the Fishkill, Beacon, and Downstate c01Tectional facilities, as
prepared for the NYS Office of General Services by Woodard & Cumin Engineering and dated
August 2012. That report identified approximately $525,000 in nccessmy repair and rehabilitation
costs to the pipes at Beacon Correctional Facility, $5,571,000 for necessary repairs and
rehabilitation costs to the Fishkill Correctional Facility and $1,085,000 for the repairs at Downstate
Ccmectional Facility. To the City's knowledge, this work has not been performed to date.

With the installation of effective stonnwatcr management on the site, the corrunittee believes the
ESDC would have received more responses with far greater investment and greater job creating
opportunities. There are additional benefits lo this remedy. The City's wastewater infraslrudure
is overwhelmed by nmoff during large stonns. Any improvement to existing conditions would
improve this problem. The Committee suggests that ESDC coordinate with the other state agencies
to develop a solution to this problem to effect greater economic opportunities and redevelopment
in the City of Beacon.

The ESDC' acknowledged the stormwater concerns in its RFP, but ignored the Committee's
requests to coordinate a resolution to the problem, or utilize any of the $6 million in grant funding
to fix the problem.

An additional desire and goal of the RFP was that the proposed redevelopment would return the
property to the tax rolls. The current proposal would not do that, and the respondent has not agreed
lo the City's requested PILOT amount, nor has a school program been discussed with the School
District.

Local government planning goals, which include economic development, are to see this site
developed in the context of the redevelopment of the 1-84/NYS Route 9D interchange. The current
sole proposal would limit the redevelopment opportunities of the area and would be inconsistent
with the site's mixed-use, recreational and destination development potential.
While the Committee admires, and respects the work of the respondent, the Committee does not
support the redevelopment proposal for this site, and feels the state is forcing this proposal on our
community.

We respectfully request ESDC exercise its right to reject the only response to the RFP, and work
with the Committee to develop the site for its highest and best use.

Senator Serino

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/\.ssemblyman Lalor County Executive Molinaro Supervisor LaColla