Bethel, N.Y. – Bethel Woods Center for the Arts is seeking another property tax exemption for the next 10 years from the Sullivan County Industrial Development Agency (IDA), but the Monticello Central School District says the extension would result in a $5.1 million loss in school tax revenue.
The extension request follows Bethel Woods’ original payments in lieu of taxes (PILOT) deal that has already been in place for 20 years.
Monticello Central School District Superintendent Dr. Matthew Evans urged the Sullivan County IDA to reconsider the extension in a Feb. 5 letter to the Sullivan County IDA.
As part of its original PILOT agreement established in 2006, Bethel Woods agreed to pay $69,676.52 annually to the Sullivan County IDA from February 2007 to February 2026. In his letter to the Sullivan County IDA, Evans wrote that the Monticello Central School District receives $31,703 from the total sum the IDA receives from Bethel Woods each year.
However, Evans said that “if [Bethel Performing Arts Center] were to pay its full value of taxes on the parcels included in this PILOT exemption, it would owe the Monticello Central School District approximately $504,693 in the current fiscal year.”
Bethel Woods’ extension request to the Sullivan IDA says that the organization operates at a multi-million dollar annual operating deficit that is bridged through donations.
“As Bethel approaches its 20th anniversary, significant reinvestment is required across the campus, and continued stability through the PILOT enables responsible long-term capital planning while maintaining benefits provided to Sullivan County,” said Bethel Woods CEO Eric Frances in his extension request.
Opened in 2006, Bethel Woods has served as a multi-venue hub that has attracted global artists like Bob Dylan, Lady Gaga, and Cyndi Lauper for performances. The organization’s net income was more than $2.9 million in 2024, according to its 2024 990 Form.
PILOT extension draws concerns
Evans wrote in his letter that the proposed deviation would affect not only students and staff but also Sullivan County taxpayers.
“This loss in tax revenue ($472,990) represents 1.1% of our total tax levy for 2025-26. It represents programs that we are unable to offer our students. It represents loss in salaries and benefits potentially realized by our staff members. It represents a tax burden shifted to other taxpayers to foot the bill,” said Evans.
He added in his letter that Bethel Woods has served as a “terrific cultural and economic resource” for Sullivan County and that its importance to the community was not in question.
PILOT agreements are typically issued in the early years of an economic development project to incentivize new businesses or developers to develop new projects in an area by granting real property tax abatements or other tax exemptions. Sullivan County IDA’s own policy states “PILOT payment schedules will not extend beyond a twenty-year period.”
Both the Monticello Central School District and the Sullivan County IDA declined an interview, but Sullivan IDA Executive Director Jennifer Flad told Radio Catskill that “any negotiation on the PILOT amount will be between Bethel Woods and the taxing jurisdictions. IDA is involved to assist in delivering the PILOT, where without IDA there would be no delivery mechanism.”
UPDATE: Radio Catskill reached out to Bethel Woods Performing Arts Center for comment but originally did not hear back in time for publication. The organization responded with this statement after this article was published.
“For 20 years, Bethel Woods Center for the Arts has served as a catalyst for economic revitalization in Sullivan County, generating more than $1 billion in economic impact since inception. As part of that commitment, the organization voluntarily contributes a significant amount annually through a combination of PILOT payments, property and school taxes, and special assessments — even as a nonprofit performing arts center and Museum, proudly preserving the National Register-listed historic Woodstock site.
Our priority has always been the long-term strength and viability of the community. We are committed to ensuring that our impact — economic, educational, and cultural — endures well beyond the next 20 years. We look forward to our collaboration with the IDA and local taxing jurisdictions to continue a thoughtful, sustainable path forward that allows Bethel Woods to advance its nonprofit mission, preserve this globally significant historic landscape, and pursue national Landmark recognition as we approach the 60th anniversary of Woodstock in 2029.”
At their Jan. 21 meeting, the Sullivan County IDA Board discussed authorizing a PILOT extension for Bethel Woods for an additional ten years from 2026 to 2036. The new PILOT agreement would increase Bethel Woods’ annual payment to $113,035.72 to account for inflation and cost-of-living adjustments, increase its annual rent from $2,500 to $4,000, and waive any PILOT extension fees since Bethel Woods is a 501c3 nonprofit.
The Sullivan County IDA Board originally had planned to authorize the PILOT extension on its Feb. 9 meeting agenda, but removed the agenda item after they received Monticello Central School District’s letter.
During the IDA’s Feb. 9 meeting, Sullivan County IDA Agency Counsel Walter Garigliano said he had connected the school district’s and Bethel Woods’ legal counsels to have “an adult conversation.”
Garigliano, who was the IDA’s legal counsel back in 2005, shared the backstory behind the original PILOT agreement involving Alan Gerry, founder and chairman of Bethel Woods, and local and county officials.
“It was the then-assessor of the Town of Bethel’s belief that Bethel Woods was entitled to a full exemption from taxes. Alan Scott, who had previously been the supervisor for the Town of Bethel and representatives of the county, approached Mr. Gerry and asked him if he would continue to pay the taxes that were payable before Bethel Woods became Bethel Woods. That amount was $69,000 and some change,” said Garigliano.
“If the assessor was right 20 years ago and the property qualifies for an exemption, if they had applied for an exemption, the levies would be zero. The project agreed to pay $69,000 a year to implement that.”
Garigliano added that “whether or not the assessor or the school district or others feel [Bethel Woods is] entitled to be tax exempt, that’s not our job.”
After this article was published, Dr. Evans clarified that “our legal counsel is not in discussion with Bethel Performing Arts Center to reach an agreement.” He added that the “Monticello Central School District is not a party nor signatory to the Bethel Performing Arts Center’s (BPAC) application for a deviation from the Sullivan County uniform tax exemption policy (UTEP).”
Garigliano said at the Feb. 9 Sullivan IDA meeting that “Howard [Siegel] pulled it from the agenda to give the school time to work with Bethel Woods to try and figure that out.”
Disclosure: Bethel Woods Performing Arts Center is a financial supporter of Radio Catskill.
Update: This article was updated on Feb. 12 to include Bethel Woods Performing Arts Center’s response and Monticello Central School District’s response following publication. The headline was also updated to clarify the potential impact the tax exemption could have on school revenue.
Image: Entrance of Bethel Woods Performing Arts Center in Bethel, New York (Photo Credit: Kimberly Izar)
You should have led with “Bethel Woods is a 501(c)3 tax exempt organization, which has been making PILOT payments — payments in lieu of taxes — voluntarily.” Your Facebook post omitted this very relevant point entirely, and your headline is materially misleading. You are a great news source, but you fell down on the job with this report.
I agree. While I was reading the article, I kept wondering why Bethel Woods, as a not for profit, was paying any amounts – PILOT or otherwise.
A $3 Million dollar venture should pay taxes and not disguise itself as a “non-profit” organization. Just because there are no “stockholders” doesn’t mean there aren’t “stakeholders” who benefit from its existence: the CEO, executive staff, employees, and performers–yes they all pay income tax; but this organization is no different than any other entertainment business and it should be taxed at a reasonable rate.