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Palaia Winery Receives $400,000 Grant, Regional Economic Development Incentive

Senator James Skoufis (D-Orange County) and Assemblyman Chris Eachus (D-New Windsor) touted $400,000 in capital funding via the Regional Economic Development Council Initiative for Spirits Lab Distilling Co., a recent fixture in Newburgh’s beverage scene that is expanding its operations to include a production facility at the former Palaia Winery property in Highland Mills. This Route 32 staple had been a treasured favorite among local residents and visitors until its 2022 closure.

The Spirits Lab renovation of the 32-acre winery will allow the distillery to grow and harvest ingredients for their bespoke bottled and canned cocktails, keeping their products farm-to-glass, and ensuring this long-running agricultural property remains operational.

“I’ve been to many events and outings at Palaia over the years, and it’s such a special slice of Orange County’s small-batch beverage landscape,” said Senator Skoufis. “While Palaia’s closure was heartbreaking for many in our community, I was delighted to support Spirits Lab’s application for funding and am thrilled to see this relatively new craft cocktail business expanding its operations locally. Cheers!”

“Palaia Winery was a staple of the amazing products that locally crafted, home grown, Orange County businesses can make,” said Assemblymember Eachus. “Thanks to this funding, this cherished property is being handed over to a new generation of local entrepreneurs, continuing the growing legacy of Hudson Valley products. I am grateful to my friend and Senate counterpart Senator Skoufis for his continued support of our local businesses, and am looking forward to the great future in store for Spirits Lab!”

The funding was announced as part of the Governor’s Round XII REDC awards on Wednesday.

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