County Executive O’Neil questions Comptroller on Heritage Park audit

POUGHKEEPSIE — Dutchess County Executive William F. X. O’Neil has taken issue with a recent follow-up audit on the Dutchess Stadium that showed sharply rising operational costs.

The audit issued by Comptroller Robin Lois this month reports the subsidy more than doubling from $134,008 in 2017 to $320,325 in 2022 and estimated to be  $422,594 in 2023. 

The Comptroller notes that the Stadium ownership, lease agreements, and naming rights have all changed since the 2020 review. The Stadium name has been sold to Heritage Financial Credit Union in March of 2023 and the Stadium is now called Heritage Financial Park.

The Hudson Valley Renegades, owned previously by the Goldklang Group, were sold to their current owner, DBH Hudson Valley, LLC in December 2021. The lease arrangement between the Renegades and the County has been updated three times between June 2021 and September 2023.

In a prior audit, the Comptroller’s office recommended that the administration negotiate a more equitable lease arrangement in order to protect taxpayer dollars, but noted in the recent audit that this renegotiation did not result in a more favorable outcome for the county. The most recent lease amendment executed in September 2023 for the full year beginning January 2023 and expiring Dec. 31, 2046, still does not ensure revenues cover current operating expenses, including the cost of debt service for Stadium improvements.

“There is no requirement for the stadium to show a profit, or even break-even,” O’Neil responded in a letter to Comptroller Lois, adding that the Legislature approved the new lease terms with bipartisan support and a super-majority vote.  

The Stadium is not managed by the County as a public park. Because it is operated by a for-profit corporation, Comptroller Lois said it “should therefore be held to a different and higher standard for its tolerance of taxpayer funding. Our audit continues to recommend that the administration, as stewards of taxpayer funds, renegotiate a more equitable lease arrangement with the tenant to ensure taxpayers are not subsidizing a for-profit entity.”

Beginning in 2018, the County has committed over $30 million in capital improvements to the Stadium. Current construction of a new home team Clubhouse with a conference/event space and additional premium seating is underway with completion scheduled for use beginning in the 2024 season. This project was funded with a $25 million last minute amendment to the 2023 operating budget by the county Legislature.

In his letter to the Comptroller, O’Neil responded that the community has been “clear that they support the Hudson  Valley Renegades and keeping them in Dutchess County is important.” 

He also noted that the Stadium is home to high school and college football, recreational leagues and youth summer camps along with graduation ceremonies. 

O’Neil said he suspects the timing of the audit opinion, which came in the midst of an election season and pointed to the Stadium’s significant contribution to the local economy through sales tax revenue and employment opportunities. 

“Yet you have chosen to leave them [these facts] out in favor of publishing a politically charged opinion,” he wrote. 

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