The Agreement Sought by HudsonDots

Today at 6:00 p.m., the Common Council holds a special meeting to consider the Section 581-A regulatory agreement sought by HudsonDots for seven of its properties: 341 State Street, 14 and 16 Jenkins Parkway, 526 and 528 Prospect Street, 308 Columbia Street, and 520 Columbia Street. 

Since the Common Council meeting last Tuesday, the terms of the agreement have changed. The new resolution now specifies that 50 percent of the units in multifamily buildings (341 State Street and 308 Columbia Street are two-family houses) and 75 percent of units in single family buildings "will be rented for an amount not to exceed 30 percent of the area medium [sic] income for Columbia County." In the original resolution, the agreement applied to 50 percent of the units in all the properties. The new resolution also reduces the term of the agreement from five years to three years.

This map shows the locations of all properties currently owned by HudsonDots. The ones in red are those that are part of the proposed agreement.

According to calculations provided by Sara Black, former coordinator for Hudson Community Development and Planning Agency (HCDPA) who now works for HudsonDots, the agreement would save HudsonDots about $9,000 in city property taxes for the seven houses. There would be proportional savings in county and school taxes. All told, according to Gossips' estimate, the annual savings may amount to about $36,000. 

It is interesting to note that HudsonDots is described in the resolution as a QOZB LLC and, according to county tax records, each of the seven properties involved in the proposed agreement is owned by a different QOZB LLC. "QOZB" stands for Qualified Opportunity Zone Business. The IRS defines a Qualified Opportunity Zone as "an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment." One of the tax benefits provided by the Qualified Opportunity Zone statute, Gossips has learned, is that a QOZB can avoid 100 percent of the capital gains taxes on the sale of properties held for a minimum of ten years.

In contrast to Hudson's classification as a Qualified Opportunity Zone, in other words, "an economically distressed community," Hudson was recently identified as one of "7 Best Places to Live in Upstate New York in 2024" in WorldAtlas.com. The description there of our city begins: "Hudson, the heart of the Hudson Valley in Columbia County and its county seat, is an affluent town of just over 5,500. Boasting a median household income of $73,065, its median age is 40.1 years." Of course, WorldAtlas.com may not be the most reliable source. It also claims Hudson is "like a well-oiled machine, with the glue that holds it all together--its flourishing community spirit."

Today's special meeting of the Common Council, which begins at 6:00 p.m., is a hybrid, taking place in person at the Central Fire Station, 77 North Seventh Street, and on Microsoft Teams. Click here to find the link to join the meeting remotely.

For those interested in reviewing the discussion of the proposed agreement that took place on Tuesday, February 20, the video of the meeting can be found here. The presentation and discussion begins at 40:00.

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