George Duke helped Fay Hospitality Catskills to overcome financing delays associated with post-COVID market conditions, interest rate increases, and the 2023 banking crisis to get their $15.7 million acquisition of the Villa Roma Resort in Sullivan County, New York, on track to close in the third quarter of 2023.
The Sullivan County Industrial Development Agency (SCID)—which approved the sale of the resort in mid-August—will be affording financing incentives to the project, including a $153,000 mortgage tax exemption, a $384,000 sales tax exemption, and a 15-year PILOT (payment in lieu of taxes) agreement on the improvements the buyer plans to make to the facility that qualifies as real property improvements. The PILOT agreement affords the improvements a 100% abatement for five years.
Founded 60 years ago and currently comprising 435 acres, Villa Roma is the Town of Delaware’s largest employer and one of several hotels in the Catskills undergoing transformation.
The application that Connell Foley secured approval for describes plans to spend $5 million to renovate the property and $2.4 million for structural and facility repairs. The July 14 application says renovations and improvements will begin six months after the closing. It estimates the project will create 65 construction jobs and retain 269 of the resort’s full-time employees and 100 seasonal workers.
The buyer, Fay Hospitalities, an affiliate of UK-based Fay Investment and Asset Management, is also considering building 100 townhomes on the site, which currently has multiple revenue streams, including timeshares, a golf course, skiing, and restaurants.
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