Highland Mills. Skoufis, Eachus laud $400K for reimagining of former Palaia Winery

Senator James Skoufis (D-Orange County) and Assemblyman Chris Eachus (D-New Windsor) this week 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,” Skoufis said in the press release announcing the award. “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,” Eachus added. “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.”

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