Amazon warehouse plan faces new lawsuit as IDA tax break deals come under fire
The lawsuit challenges the Town of Wawayanda’s approval of the massive warehouse, claiming the planning board lacked the authority to move the project forward after the town’s Zoning Board of Appeals denied a key height variance.
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A new lawsuit is adding to the legal and political pressure surrounding Amazon’s proposed warehouse project in Orange County, as scrutiny intensifies over the county agency pushing to grant the project millions of dollars in tax breaks.
The lawsuit challenges the Town of Wawayanda’s approval of the massive warehouse, claiming the planning board lacked the authority to move the project forward after the town’s Zoning Board of Appeals denied a key height variance.
At the same time, state leaders are raising broader concerns about the Orange County Industrial Development Agency, the same agency backing tax incentives for the Amazon project.
At a news conference this week outside IDA offices, state Sen. James Skoufis accused the agency of failing to hold other companies accountable for job creation promises tied to tax breaks.
“Taxpayers deserve a lot better than what we’ve been seeing out of the office right behind us,” Skoufis said.
Skoufis pointed to a recent report from the state-appointed IDA monitor, which he says found that more than half of the IDA’s active Pay in Lieu of Taxes (PILOT) agreements are underperforming when it comes to job commitments.
“There are dozens or hundreds of jobs that are not being created and promises being broken,” Skoufis said.
One of the most significant examples cited involves Crystal Run Healthcare, now owned by Optum. According to Skoufis, the company’s Monroe location promised to create 452 jobs but fell short by 343. He also said the Crystal Run site in the Town of Newburgh missed 65 of its 137 promised jobs, referring to the company as a “repeat offender.”
Skoufis also accused the IDA of failing to properly track whether companies were meeting their job obligations, calling the lapse “shocking ” and one of the agency’s most basic responsibilities.
Lawmakers are now calling on the IDA to claw back tax breaks from projects that have not lived up to their commitments — something state law allows but does not require.
The IDA strongly disputes those claims.
IDA CEO Bill Fioravanti said the agency believes the state monitor’s veto of the Amazon tax breaks is invalid, arguing it was issued after the legally required 72-hour deadline and without explanation. He said the IDA has formally asked the state’s inspector general to remove the monitor.
Fioravanti said the monitor participated in the entire review process for the Amazon project and sat in on IDA meetings leading up to the approval of the incentives.
He also said the IDA has enforcement tools available and has strengthened its policies in recent years to protect taxpayers.
“We can either sever the benefits if they are ongoing, or we can ask for a clawback and ask for the company to repay them,” Fioravanti said. “We absolutely can and will recapture IDA benefits if necessary.”
Fioravanti defended the IDA’s handling of individual projects, saying some job numbers were misreported or affected by business transitions, economic changes and the COVID-19 pandemic.
“In most cases, these companies did meet their goals over time, but there’s fluctuation with those employment numbers,” he said.
Meanwhile, the newly filed lawsuit adds another layer of uncertainty for Amazon’s proposed warehouse, as both the project’s tax incentives and the town’s approval process remain under review.
News 12 reached out to Amazon, the Town of Wawayanda, the Orange County Legislature and Optum, the owner of Crystal Run Healthcare, for comment.
