Hudson Valley Taxpayers On Hook For $9.5M At Former IBM Campus

The redevelopment of the former IBM campus in Ulster County is in serious financial trouble.

Officials say Ulster County taxpayers are currently on the hook for nearly $9.5 million in unpaid obligations.

Former IBM Campus Redevelopment In Trouble

The Ulster County Comptroller’s Office tells Hudson Valley Post that the redevelopment of the former IBM campus in the Town of Ulster is in serious financial trouble, and Ulster County taxpayers are on the hook for nearly $9.5 million in unpaid obligations.

The Ulster County Comptroller's Office released a report showing that the developer behind iPark, two single-purpose LLCs operated by Connecticut-based National Resources, owes $6.56 million in unpaid mortgage payments and nearly $2.93 million in delinquent property taxes.

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"This property is absolutely vital to the economy of Ulster County. Not only did the former IBM Campus once provide thousands of jobs for our residents, but the property has been one of the top ten taxpayers in Ulster County for years,” Ulster County Comptroller March Gallagher stated.

Foreclosure proceedings are already underway on portions of the property.

Developer Owes Ulster County $9.5 Million

The campus was sold off in two pieces. The East Campus transferred to National Resources in June 2022 for $12 million, which included a $4.9 million mortgage from the Ulster County Economic Development Alliance and a $7 million environmental remediation credit.

The West Campus followed in April 2023 for $6.8 million, with a $6.7 million mortgage also held by the UCEDA. Since the 2022 closing, iPark has made exactly one mortgage payment of $1.17 million on the East Campus.

On the West Campus mortgage, they have made no payments at all, officials tell Hudson Valley Post.

The UCEDA board voted in February to foreclose on two West Campus parcels, with legal proceedings filed in March.

Adding another layer of complexity, iPark 87 president Joe Cotter died in October 2024. National Resources is now managing the disposition of his estate, which includes ownership of the iPark entities, further complicating any negotiations between the county and the company.

"iPark has filed two tax certiorari cases seeking to reduce the total assessed value of the property from $31.48 million to $6.43 million," Ulster County Comptroller's Office states.

Ulster County Comptroller March Gallagher's report warns that while the high tax burden does make redevelopment harder, any reduction in assessed value would simply shift that tax burden onto other property owners in Ulster County, the Town of Ulster, and the Kingston City School District.

"This property is absolutely vital to the economy of Ulster County," Gallagher said. "We cannot shy away from the facts. Ulster County must aggressively protect taxpayer interests and be realistic about the true value of the property."

The former IBM campus once employed thousands of Ulster County residents and has long been one of the top ten taxpayers in the county. What happens next with the foreclosure proceedings and ongoing negotiations will have significant implications for the region.