Making it Ulster’s Business - The Ulster County Industrial Development Agency pursues progress and economic development

by Zac Shaw for Ulster Strong

KINGSTON - People who run businesses know economic development is about pushing forward, even when faced with obstacles requiring significant financial resources to overcome.

Ulster County Industrial Development Agency (UCIDA) Executive Director Hillary Nichols calls these “but fors.”

 “A ‘but for’ is a project that wouldn’t happen ‘but for’ the assistance of the IDA,” she said. “This is a project that has got some legs to it, but there’s some missing capital there in order for them to move forward.”

Since becoming Executive Director in 2023, Nichols has been on a quest to attract meaningful investment, create local jobs, and shape the region’s future in a way that works for residents, businesses, and towns.

“The mission of the Ulster County IDA is to create jobs, help businesses grow or expand here, and to foster long-term economic sustainability for the county,” she said.

What’s the IDA?

One of the clearest ways to understand what the IDA does is to look at the kinds of projects it supports. Currently under construction is the New Paltz Way, a 28-room boutique hotel being built on the site of a long-abandoned box factory just off Route 299. The $12.6 M project was approved unanimously for $1.06 M in tax incentives in February 2025.

“It’s not just a Holiday Inn – not that there’s anything wrong with a Holiday Inn,” she said. “But it’s a boutique hotel, being developed by two relatively local guys. They’re doing some really cool things to make it sustainable and environmentally friendly.”

The IDA helped get the New Paltz Way project off the ground by offering what it refers to as “incentives” — specific tax abatements and other tools that can fill critical gaps in financing — the dreaded ‘but fors’ that would otherwise tank a promising project.

Other examples of IDA-supported development include helping to secure $23 M in tax-exempt bonds for Woodland Pond, a senior living community in New Paltz, and the Marlboro Resort Project, a nearly $90 million investment that drew overwhelming public support. “We had 15 to 20 people come out to the public hearing, all speaking in favor,” Nichols said. “It’s really exciting to see that.”

Macro challenges, micro solutions

In a county like Ulster, economic development doesn’t always mean giant tech campuses like iPark 87 or high-rise constructions like The Kingstonian. The region faces a more nuanced set of challenges—like housing shortages, underutilized land, and the ongoing need to attract businesses that can offer stable, good-paying jobs.

Nichols sees housing as especially urgent. “It’s one of the most difficult things right now. It’s so expensive to build these projects. If a developer is looking to build a project and housing is scarce everywhere, how do we attract those developers to come here to build housing here in Ulster County when they can easily go and build it somewhere else because it’s needed everywhere?”, she asked. To help, the IDA recently created a housing-specific Uniform Tax Exemption Policy (UTEP) and a matrix to assess proposed housing developments based on need, affordability, environmental design, and whether they create jobs.

“We don’t envision ourselves as a housing authority or entity,” Nichols said. “But we wanted to be able to offer that tool, to have that available to try to get the housing built.”

The IDA doesn’t provide cash or grants, and it’s not a bank. Instead, it offers different types of tax abatements: sales and use tax on construction materials, mortgage recording tax, and abatements for property tax (but only on the newly assessed value of a completed project.)

“You cannot abate any of the taxes you currently pay. If your tax bill is $20,000 a year before the project, we cannot abate that. Whether it’s an abandoned box factory or it’s an undeveloped piece of land, if you’re paying $20,000 a year in taxes, you will always pay that.” Nichols clarified. The IDA only helps to abate the newly assessed value once the project is complete.

The agency also facilitates tax-exempt bond financing, typically for larger projects. They don’t actually lend the money itself, but they can act as a “conduit” to help secure the funds.

Importantly, the IDA doesn’t take sides on whether a project should or shouldn’t happen—local planning boards and zoning officials handle those approvals. The IDA gets involved after that’s all done.

“We don’t accept applications until a project has gone through local planning, zoning, and environmental review,” Nichols said. “By the time something comes to us, it’s already cleared those hurdles.”

A transparent, public process

If any of this sounds like it happens behind closed doors, think again. Every application, matrix score, environmental review, and board discussion is posted on the IDA website. Meetings and public hearings are live-streamed. And every step of the process is open to public comment.

“The board isn’t meeting in a back room with developers,” Nichols said. “When we send materials to the board, they’re also made public. What the board is doing in real time, the public can follow that along in real time, whether it’s going to our website and reviewing the materials, or whether it’s coming to an IDA board meeting and hearing the discussion that takes place in a public hearing.”

That transparency is central to how the agency operates—and part of why Nichols wants developers and community members alike to understand how the incentives actually work. “People hear the phrase ‘tax break’ and assume something’s being taken away from the community,” she said. “But really, we’re helping to generate new taxes, not reducing existing ones.”

Working with the IDA?

Developers or business owners interested in working with the IDA can reach out anytime—by phone, email, or through the agency’s website. “We answer the phone,” Nichols said. “We’re here Monday through Friday.”

While developers can—and should—initiate early conversations, there’s one key cutoff: no shovels in the ground before the IDA is brought in. “That’s where the ‘but for’ comes in,” Nichols reiterated. “If you start building before we’re involved, then you’ve already demonstrated that the project can move forward without us. And at that point, we can’t help.”

Each project is evaluated using a public scoring matrix, and if approved, enters a “pilot” phase that gradually brings the property back onto the tax rolls over a number of years. The more jobs and public benefits a project offers, the greater the incentives it may qualify for.

“We want Ulster County to be a place where people can grow their business, put down roots, and invest in the future,” Nichols said. “If you’re interested in doing business here, there’s a team ready to support you.”

For more information like current projects, application forms, and meeting schedules, visit ulstercountyida.com.