THE ASSEMBLY

STATE OF NEW YORK

CHAIR
Subcommittee on
Catastrophic Natural Disasters

ALBANY
JAMES SKOUFIS
Member of Assembly
th
99 District

COMMITTEES
Agriculture
Insurance
Labor
Local Governments
Transportation
Veterans Affairs

December 27, 2016

Mr. Robert T. Armistead
Chairman
Orange County Industrial Development Agency
4 Crotty Lane, Suite 100
New Windsor, NY 12553

Dear Chairman Armistead:

I write to you regarding the payment-in-lieu-of-taxes (PILOT) agreement the Orange County
Industrial Development Agency (IDA) approved for the Competitive Power Ventures (CPV)
power plant in the Town of Wawayanda.
As you know, a former senior vice president at CPV and a former high-ranking state
government official have been indicted on charges that allege a conspiracy to defraud the
residents of New York State through acts of corruption. These charges are alarming in both
their scope and detail. One such charge alleges the CPV official gave bribesto influence
regulatory approvals and funding related to the development of a power plant in Orange
County
I continue to believe that every, single state permit received by CPV ought to be investigated
for impropriety in light of the U.S. Attorneys charges; I have requested New Yorks Attorney
General open an investigation to this end.
Additionally, I write to you today requesting the IDA Board prepare to revoke the PILOT if and
when a court finds the relevant defendants guilty.
Tax incentives are offered to projects with a common-sense understanding that the proposed
work will proceed honestly and in accordance with the law. The allegations raised by the U.S.
Attorney casts the integrity of the CPV power plant in severe doubt. Furthermore, the
Millennium Pipeline, which seeks to deliver natural gas to the power plant, has not secured a
number of time-sensitive permits that are needed for the power plant to become operational.
Continued delay will result in a violation of the CPV projects timeline as proposed in the PILOT
agreement.

ALBANY OFFICE: Room 821, Legislative Office Building, Albany, New York 12248 518-455-5441 FAX: 518-455-5884
DISTRICT OFFICE: 11 Main Street, Chester, New York 10918 845-469-6929 FAX: 845-469-0914
EMAIL: skoufisj@assembly.state.ny.us

There is ample precedent for revoking a PILOT. In fact, the Town of Hempstead IDA will be
holding a public hearing in early 2017 to consider revoking a PILOT from a company that,
unlike CPV, is not embroiled in any criminal wrongdoing. Legal action by CPV, which ought to
be expected if the PILOT is revoked, should not be considered a deterrent.
You and your colleagues at the IDA spent a number of years dutifully studying and negotiating
the PILOT with CPV. Your work deserves to be respected by the applicant.
More importantly, the law-abiding taxpayers who subsidize this PILOT deserve to be respected.
Thank you for considering my request.
Sincerely,

James Skoufis
Member of Assembly

ALBANY OFFICE: Room 821, Legislative Office Building, Albany, New York 12248 518-455-5441 FAX: 518-455-5884
DISTRICT OFFICE: 11 Main Street, Chester, New York 10918 845-469-6929 FAX: 845-469-0914
EMAIL: skoufisj@assembly.state.ny.us