News12 New York
N12 Originals
Numbers & Links
Local
Crime
Weather
Politics
Taxing Long Island
Stony Brook Medicine
Vote 2026: Long Island primaries

Amazon warehouse plan faces new lawsuit as IDA tax break deals come under fire

The lawsuit challenges the Town of Wawayanda’s approval of the massive warehouse, claiming the planning board lacked the authority to move the project forward after the town’s Zoning Board of Appeals denied a key height variance.

Blaise Gomez

Dec 17, 2025, 5:19 PM

Updated

Share:

More Stories

A new lawsuit is adding to the legal and political pressure surrounding Amazon’s proposed warehouse project in Orange County, as scrutiny intensifies over the county agency pushing to grant the project millions of dollars in tax breaks.

The lawsuit challenges the Town of Wawayanda’s approval of the massive warehouse, claiming the planning board lacked the authority to move the project forward after the town’s Zoning Board of Appeals denied a key height variance.

At the same time, state leaders are raising broader concerns about the Orange County Industrial Development Agency, the same agency backing tax incentives for the Amazon project.

At a news conference this week outside IDA offices, state Sen. James Skoufis accused the agency of failing to hold other companies accountable for job creation promises tied to tax breaks.

“Taxpayers deserve a lot better than what we’ve been seeing out of the office right behind us,” Skoufis said.

Skoufis pointed to a recent report from the state-appointed IDA monitor, which he says found that more than half of the IDA’s active Pay in Lieu of Taxes (PILOT) agreements are underperforming when it comes to job commitments.

“There are dozens or hundreds of jobs that are not being created and promises being broken,” Skoufis said.

One of the most significant examples cited involves Crystal Run Healthcare, now owned by Optum. According to Skoufis, the company’s Monroe location promised to create 452 jobs but fell short by 343. He also said the Crystal Run site in the Town of Newburgh missed 65 of its 137 promised jobs, referring to the company as a “repeat offender.”

Skoufis also accused the IDA of failing to properly track whether companies were meeting their job obligations, calling the lapse “shocking” and one of the agency’s most basic responsibilities.

Lawmakers are now calling on the IDA to claw back tax breaks from projects that have not lived up to their commitments — something state law allows but does not require.

The IDA strongly disputes those claims.

IDA CEO Bill Fioravanti said the agency believes the state monitor’s veto of the Amazon tax breaks is invalid, arguing it was issued after the legally required 72-hour deadline and without explanation. He said the IDA has formally asked the state’s inspector general to remove the monitor.

Fioravanti said the monitor participated in the entire review process for the Amazon project and sat in on IDA meetings leading up to the approval of the incentives.

He also said the IDA has enforcement tools available and has strengthened its policies in recent years to protect taxpayers.

“We can either sever the benefits if they are ongoing, or we can ask for a clawback and ask for the company to repay them,” Fioravanti said. “We absolutely can and will recapture IDA benefits if necessary.”

Fioravanti defended the IDA’s handling of individual projects, saying some job numbers were misreported or affected by business transitions, economic changes and the COVID-19 pandemic.

“In most cases, these companies did meet their goals over time, but there’s fluctuation with those employment numbers,” he said.

Meanwhile, the newly filed lawsuit adds another layer of uncertainty for Amazon’s proposed warehouse, as both the project’s tax incentives and the town’s approval process remain under review.

News 12 reached out to Amazon, the Town of Wawayanda, the Orange County Legislature and Optum, the owner of Crystal Run Healthcare, for comment.

More Stories

Top Stories

00:29
motorcyclecrash

Motorcyclist ejected, seriously injured in South Huntington crash

02:10
TODAY li

Sunny Saturday, storms return Sunday on Long Island

00:23
PEDESTRIAN struck

Car strikes pedestrian on road in East Northport

CREDIT: AP Photo/Andre Penner

US opens its home World Cup with a dynamic 4-1 victory over Paraguay, sparked by Balogun’s 2 goals

01:51
LI10PMCentralIslipFireKK_2026-06-12-22-35-57

More than 40 different fire departments arrive to battle fire at strip of Central Islip businesses

00:28
Screenshot 2026-06-12 211019

Massive tree believed to be 100 years old splits apart, falls down in Long Beach

02:27
li5pmbologanguilty_2026-06-12-17-51-23

Underage driver says he was sold alcohol hours before crash that killed Nassau officer

00:22
GRAND LARCENY CHARGE Court GAVEL mon copy

Nevada man accused of thieving over $225K from dead wife's social security benefits

01:38
b153633f-1e51-4b9e-a3e9-dd6d5ca46ca2

Venus, Jupiter, Mercury and crescent moon visible in next week’s night sky

00:22
LI8pmDWIKK_2026-06-12-21-15-10

Hempstead man sentenced to 5–9 years for drunken wrong-way crash

01:36
5PMLIEbikeKevinKK_2026-06-12-17-38-31

Westbury teen seriously injured in latest Long Island e-bike crash

01:41
IMG 5363

Cleanup underway after severe thunderstorms across parts of Long Island

00:24
li5pmbolbethpagefatal_2026-06-12-18-05-16

Fatal crash temporarily closes Bethpage State Parkway in both directions

00:28
5PMWorldCupWatchKK_2026-06-12-17-57-53

Stony Brook University hosts World Cup watch party with Third Eye Blind performing

00:39
Vote 2026

Key House races, comptroller contest, and control of East Hampton on the line in June primaries

Dad Rocks Sponsored Adventureland 2024

Is your dad awesome? Long Island tell us why your dad rocks!

00:30
612northpatchoguecrash_2026-06-12-12-05-17

Man killed, two others hurt in North Patchogue crash

00:23
e-bike crash MONITOR copy

14-year-old seriously hurt while riding e-bike in Nassau County

01:48
612LIPRIDEJENN_2026-06-12-08-41-55

Thousands expected for Long Island Pride celebration in Huntington

01:15
Image (15)

Food Truck Friday: The Clamming Lemon

App StoreGoogle Play Store

info

Newsletter

Send Photos/Videos

Contact

About Us

News Team

News 12 New York

follow us

Twitter

Facebook

Instagram

more resources

Optimum Corporate

Optimum Service

Advertise on News 12

Careers

Content Removal Policy

© 2026 N12N, LLC

Privacy Policy

Terms of Service

Ad Choices