ELDRED — The Sullivan County Industrial Development Agency (IDA) held a public hearing last Monday morning on a proposal by Amytra Development LLC, the ownership entity behind The Eldred Preserve, to construct a $16 million full-service spa at the resort’s Route 55 property in Eldred.

The project would include massage treatments, facials, saunas, hot tubs and other wellness amenities designed primarily to support overnight hotel guests and expand year-round visitation to the property.

According to documents submitted to the IDA, the project is seeking approximately $700,000 in sales tax abatements, $250,000 in mortgage recording tax abatements and additional property tax relief through a long-term Payment In Lieu Of Taxes (PILOT) agreement.

Marc Baez, President and CEO of the Sullivan County Partnership for Economic Development, voiced support for the project during the hearing, calling the Eldred Preserve “an important anchor” for western Sullivan County and saying the spa would help strengthen year-round tourism activity.

The IDA approved the proposed spa yesterday and adopted a negative declaration under SEQRA, finding it would not have significant adverse environmental impacts. Counsel for the IDA Walter Garigliano said the agency conducted its own environmental review after not receiving SEQRA documents from the Town of Highland Planning Board, which had previously reviewed the project.

In an interview following the hearing, Eldred Preserve Chief Operating Officer Scott Samuelson said the spa is intended to help stabilize the resort during slower winter months and increase midweek business.

“We are open 365 days a year, seven days a week,” Samuelson said. “But the fluctuation in clientele is dramatic. Obviously in the summer we’re super busy, and then the colder seasons go down a level. And then the winter is very difficult to maintain.”

Samuelson said the resort currently relies on owner support to offset operating losses.

“Right now, Mr. Silna writes a check every year for what the shortfall is,” Samuelson said. “What we’re trying to do is get this property up to where it covers itself 100 percent.”

The Eldred Preserve is owned by Daniel and Joan Silna through Amytra Development LLC. Samuelson described the property as a “legacy” project and said the owners are focused on maintaining the resort long term.

“There is really no realistic way for them ever to recoup their investment,” Samuelson said. “What we’re looking for is if the property can maintain itself and that it can go on.”

Samuelson said the spa is not primarily intended to compete as a standalone public spa business, though it would be open to outside guests when available. Instead, he said the goal is to create additional reasons for overnight visitors to stay at the property.

“What we’re building the spa for is primarily to give our guests on our property an amenity to draw them here and keep them here in the times when we’re a little bit slower,” he said.

A cost-benefit analysis prepared for the IDA by Shepstone Management Company, Inc. estimates approximately $7.1 million in direct public-revenue benefits through property taxes, sales taxes and room taxes over the analysis period, compared with an estimated public cost of about $3 million.

The proposal also includes a projected 15 to 20 permanent jobs associated with the spa, along with approximately 25 construction jobs. Samuelson said entry-level wages at the property currently start around $21 per hour, with management-level spa positions expected to pay significantly more.