CALLICOON – The sale of Villa Roma Resort and Conference Center in Callicoon to Fay Hospitality Catskills LLC is expected to go to closing today for a purchase price of $17.15 million, according to Sullivan County Industrial Development Agency (IDA) documents and sources close to the deal.

The IDA unanimously approved the proposed benefits package at a special meeting on Wednesday.

The Villa Roma was purchased in 1970 by Marty Passante from Erenesto Vindigni  and was transformed into one of the premier resorts in the Catskills.

The Villa Roma is located on approximately 434 acres of land at 356 Villa Roma Road in Callicoon – with its exact location more commonly referred to as the Beechwoods.

Today, owner Marty Passante and General Manager Paul Carlucci have been with the Italian-themed resort for 54 and 52 years, respectively. 

The pending sale has been in negotiations for the past four years, sources said.

The IDA-approved assistance package includes a mortgage recording tax exemption of as high as $110,000, a limited real estate tax abatement at a predetermined value and a sales and use tax exemption of $390,000. 

The IDA waived application fees for submission of the application, but the standard $5,000 escrow deposit was required to cover IDA expenses. 

Fay Hospitality Catskills is a Delaware corporation formed in 2021 and is an affiliate of UK-based Fay Investment and Asset Management. 

Fay was founded by Sandeep Wadhwa, who heads the organization which has teams located in New York and London, according to their website. 

The project that Fay Hospitality proposed includes the since completed purchase of the Villa Roma property, the immediate improvements to the hotel - including its 139 hotel rooms, the public spaces, the meeting spaces, the club forum and indoor pool, the club house, the recreation and fitness center, the Club House catering center, the spa and ski chalet and improvement to the Golf Course Irrigation System. 

The total anticipated capital investment for the project is approximately $24.9 million, according to the IDA. Fay also plans to invest an additional $3.92 million to undertake immediate property facility improvements and upgrades to the golf course irrigation system, according to their application.

The $3.2 million for the Performance Improvement Plan (PIP) improvements to the project are set to commence within 6 to 12 months after closing, while the continued $677,000 upgrade of the golf course irrigation system will begin immediately upon closing of the sale. 

The project proposal by Fay also expects to retain the existing workforce of the Villa Roma, which is made up of nearly 250 full-time employees and 70 seasonal employees. There are also expected to be about 30 temporary construction jobs created during the renovation of the facility, at an average salary of $65,000 for the period. 

According to the application, the project is fully permitted within the existing Planned Unit Development (PUD) zoning district in the Town of Delaware and will occur fully within the property boundaries. 

Villa Roma Resort and Conference Center Inc. (VRRCC Inc.) is listed as the current owner of the site on the application, while Callicoon Development Corp. (CD Corp) and Passante Realty Corp each owned some of the parcels as well. 

Town of Delaware Clerk Tess McBeath was the lone member of the public to comment at the Fay Hospitality Catskills LLC Public Hearing held by the IDA on Tuesday, September 3. McBeath noted that she was in full support of the project. 

“The Villa Roma is not only our largest employer but also our largest taxpayer in the Town of Delaware,” said McBeath. “It definitely matters to have the Villa Roma continue operation.”

Fay Hospitality previously submitted an application to the IDA seeking financial assistance for the proposed purchase and renovation of the Villa Roma on July 7, 2023. 

The IDA approved that application last August, but the approved resolution expired on February 29, so Fay was instructed to submit a new application. That enabled them to submit an updated cost-benefit analysis before confirming their continued desire to undertake the project. 

Shepstone Management Company located in Honesdale, PA, was requested by the IDA to provide the analysis. The conclusion of their analysis stated a total cost of $1,007,793 and a total of $12,046,800 in cost benefits consisting of real property taxes  ($1,106,606), construction payroll gains ($1,950,000), multiplier effects ($833,235), sales taxes from those payroll gains ($111,329), sales taxes from operations ($6,097,900) and room taxes ($1,947,699). 

That yields a positive benefit/cost ratio of 11.95% and 9.19% after netting constriction payroll gains out.