The much-heralded project calls for the construction of an approximately 300,000-square-foot quantum facility for the development, integration, testing and delivery of quantum computing systems. Plans also include the construction of an approximately 12,000-square-foot cryogenic plant and generator building; the installation of associated site, civil, utility, power, water and cooling infrastructure to support the quantum facility; the installation of specialized fixed equipment and proprietary hardware; and the renovation of approximately 44,000 square feet of an existing building (Building 416). All of the work will be located on approximately 308.67 acres of land at 2455 South Road, 477-708 Innovation Way, 29-31 Sand Dock Road, Sand Dock Road and 98 Cliff House Lane in the Town of Poughkeepsie, NY.

An IBM official at the IDA meeting said that groundbreaking on the project could take place soon. IBM currently employs approximately 2,300 people at the site, including full-time and part-time employees and interns. In addition to retaining the jobs at the site, IBM has stated that the project would create approximately 200 new full-time-equivalent positions.

According to an analysis of the project recently released by the IDA, construction costs are expected to total approximately $900 million.

Some preliminary work at the site has begun. CIC member Shawn’s Lawns Inc. of Stamford, CT, has secured the site work package, including concrete foundations and groundwork for the project.

1. Todd Diorio, president of the Hudson Valley Building & Construction Trades Council, said the Quantum project will be an all-union project. However, no Project Labor Agreement (PLA) was reached on the project.

Mr. Diorio said Select Demo of New Hampshire has conducted some asbestos abatement work and is set to begin demolition. New York City-based Structure Tone is the general contractor on the IBM Quantum project. He expects the project to employ more than 1,000 construction workers at peak construction.

Amazon Project Set for Key Vote

Although an agenda has not yet been released, the Orange County Industrial Development Agency is expected to discuss and vote on a revised incentive package for the $607-million Amazon fulfillment center project in Slate Hill, NY, at a meeting on Oct. 28.

Developer Scannell Properties and Amazon recently amended their application before the Orange County Industrial Development Agency for a 3.2-million-square-foot fulfillment center in Wawayanda. They are now seeking approval of a 10-year PILOT (Payment in Lieu of Taxes) agreement that would provide approximately $69.6 million in incentives, compared with the previously proposed 15-year PILOT, which was rejected and estimated to provide approximately $80 million in financial assistance for the project. The IDA has since revised the value of the 10-year PILOT to $69,598,263.

Mr. Diorio said the building trades are in talks with Amazon on a Project Labor Agreement, but no deal had been signed at press time. The general contractor on the project is Layton Construction Co. of Sandy, UT. A public hearing on the revised incentive package for Amazon was held by the Orange County IDA on Sept. 10 at Minisink Middle School in Slate Hill, NY.

The IDA may also debate a proposal to prohibit PILOT property tax breaks for future warehouse projects at its Oct. 28 Board meeting. Supported by New York State Senator James Skoufis and Brian Sanvidge, the state-appointed monitor overseeing IDA decisions, the measure is the subject of an IDA public hearing scheduled for Oct. 21, beginning at noon, at the agency’s offices in New Windsor, NY.

Under the proposed policy, PILOT agreements for warehouse projects would be limited to a property tax abatement schedule equivalent to the exemption available under New York State Real Property Tax Law §485-b.

The proposed change reflects the evolution and maturation of Orange County’s warehouse and distribution market. Over the past decade, the county has attracted significant investment in this sector and today has a substantial inventory of modern warehouse space, including existing vacancies. The Orange County IDA stated this in its announcement of the public hearing. The agency believes its incentive policies should evolve with changing market conditions and that its most significant incentive tools should be focused on projects and sectors where they can have the greatest impact.

The change would still allow qualifying warehouse projects to receive property tax relief while allowing the OCIDA to prioritize projects in areas such as advanced manufacturing, tourism and destination development, housing, brownfield redevelopment and other investments that advance the county’s long-term economic and community development goals, the IDA stated.

Walmart Project in Town of Wallkill Progresses

While still winding its way through the approval process, the $1.6-billion Walmart project planned for the Town of Wallkill, at the junction of Route 17K and Stone Schoolhouse Road, is progressing.

Kevin Thompson, group director of state and local government relations, told an audience of 500 business officials at a meeting of the Orange County Partnership on Oct. 6 that the company had signed a Project Labor Agreement with the local building trades and hopes to break ground in 2027.

“We have a signed Project Labor Agreement on Walmart,” Mr. Diorio said. The PLA is between the building trades and the general contractor on the Walmart project, JA Fielden of Knoxville, TN.

“2027 could be a huge year for the building trades here,” Mr. Diorio said. “You are going to have three major projects going, I believe, at the same time … I think 2027 could turn out to be one of the busiest years in the building trades’ history if all these things fall into place.”