Sullivan’s Resuscitation

“This is the most optimistic I’ve been about Sullivan County in a long time,” Sullivan County Manager Joshua A. Potosek told the crowd gathered at the The Kartrite Resort & Indoor Waterpark for what was dubbed as Part Two of the Sullivan County Partnership for Economic Development Summit.

And reasons for optimism are abundant and sorely welcome in a county that has yet to fully recover from the devastating decline of the Catskill resort industry, an engine that fueled Sullivan’s economy for generations. From the 1920s through the 1970s the county teemed with visitors from New York City and beyond, but by the 1990s the resort industry was a husk of its former glory. Some hotels clung to life a bit longer, but long-tarnished jewels — the Concord, Grossingers — are empty, deteriorating, and still dot the landscape.

Now, though, a renewed energy seems to be in the air. Tourists have returned, and though they no longer seek the sprawling resorts of the Borscht Belt heyday, they fill boutique hotels and Airbnbs and westbound Route 17 is again congested on Friday nights.

Developers, too, have rediscovered the region, lured by Sullivan’s enviable combination of open space, welcoming communities and advantageous location.

There are plenty of sites — both large and small — offering opportunities to feed the continued demand for warehouse and distribution facilities, with several projects already approved. This means jobs and residents, he said, and even more opportunity.

“Retail (development) follows population,” Lavelle said.

In fact, Sullivan County enjoyed the highest job creation rate year-over-year, the NYS Labor Department reported. With a job growth rate of 3.6 percent (March 2022 - March 2023) Sullivan edged out Ulster County (3.4 percent) and the Orange/Rockland/Westchester Metro Area (1.8 percent.) Meanwhile, the Dutchess/ Putnam region lost 2 percent of its jobs.

Eon Nichols, a Partner at the law firm of Cuddy and Feder whose specialties include real estate financing, commercial lending transactions and public finance, noted that the County of Sullivan Industrial Development Agency can be a particularly useful mechanism to entice developers. IDAs work to attract industrial and economic development and are legally empowered to provide tax exempt financing for approved projects

“IDA can be a bad word,” Nichols said, but it shouldn’t be. And while a developer may enjoy some tax breaks, those breaks help level the playing field when a project is considering a site elsewhere in the United States, where taxes and fees are already significantly lower.

“The South is very welcoming,” Nichols noted, adding, “The ability to reduce taxes until a facility is up and running really means a lot. If you don’t give (tax savings) to them they’re going to go somewhere else. What you get in return is a robust community.”

What’s Happening in Sullivan County

Here’s a sampling of Sullivan County projects:

Route 17: Up to $1 billion was included in the 2023 state budget for an environmental review of the Route 17 expansion, including an additional lane and other upgrades. Gov. Hochul said the funding would be used to “accelerate the conversion of the Route 17 corridor in Orange and Sullivan counties to Interstate 86, fueling transformative levels of economic growth in the region and improving quality of life by alleviating congestion.”

Bethel Town Hall: This approved project includes the construction of a $26 million, 5,300 square foot carbon neutral town hall and the demolition of the existing building.

Avon Commercial Park: A 560,000 square foot warehouse in Rock Hill, near Glen Wild Road and just off Route 17.

SUNY Sullivan Aquatic Center: A $30 million aquatic and recreation facility at SUNY Sullivan, including a 25-meter long, 8-lane pool. A 200- meter track oval will be the centerpiece of the indoor arena.

Liberty Business Park: A 1 million square foot smart warehouse facility on a 109 acre parcel near Route 17 exit 101.

A new terminal at Sullivan County International Airport: A 12,000-square-foot, two-story facility at the White Lake airfield, featuring a mezzanine, outdoor deck and office space to replace the aging current terminal.

Children’s Specialty Hospital: Also in Rock Hill, an 18-bed specialty hospital for children with complex conditions, including autism. Breaking ground in July 2021, the hospital is expected to create 400 new healthcare jobs and 150 construction jobs.