ITHACA, N.Y. — The Tompkins County Industrial Development Agency (IDA) approved an estimated $85 million tax break for the SouthWorks development project, which aims to transform a 95-acre industrial site into a new neighborhood.
This initiative is part of broader efforts to revitalize the South Hill area, addressing housing shortages and enhancing local economic development. The mixed-use project, estimated to cost around $588 million, will include 915 housing units, with 20% designated as affordable, and approximately 600,000 square feet of commercial space.
Despite concerns about the accuracy of the tax break estimates, which critics labeled as misleading, the IDA’s board voted 6-1 in favor. IDA Board Chair Rich John noted that the project could not proceed without the agency’s support, highlighting its importance for the community.
The tax incentives are expected to abate about $85 million in taxes over 20 years, including significant savings for the Ithaca City School District. Critics have raised concerns about the projections, particularly regarding the timeline and structure of the tax agreements, as the project will be developed over 15 years rather than all at once. This raises questions about the long-term financial implications for local services and schools.
The approval of the SouthWorks project reflects ongoing discussions in Ithaca about balancing development needs with community impact and fiscal responsibility.
Source: The Ithaca Voice