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Psychiatric Center Deal Finally Closes
Source : Poughkeepsie Journal
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Source: Michael Valkys - Poughkeepsie Journal
Date: 03.16.2005
Development Planned at Site
Five years after a contract to purchase much of the massive Hudson River Psychiatric Center was signed, the state and a developer formally closed the deal Tuesday -- a crucial step that could lead to a hotel and conference center and hundreds of apartments on the property.
Arnold Moss, a principal with developer Hudson Heritage CPCR Ventures, said the closing with state officials was completed Tuesday afternoon. Hudson Heritage paid the state $2.75 million for the sprawling, 156-acre property off Route 9 in the Town of Poughkeepsie, including the historic 19th-century administration building and other buildings on the center's former campus.
The developer is expected to spend between $150 million and $200 million to renovate buildings and prepare the property for its new use.
"We are the proud owners of that property," Moss said. "It was much more complicated than we expected, but we got it done."
Approval Process Begins
Hudson Heritage can now begin what is expected to be a lengthy approval process with town officials. If the developer's vision for the property comes to pass, it would dramatically change the town's northern Route 9 corridor and could potentially add hundreds of students to the nearby Hyde Park school district.
A City of Poughkeepsie resident said she is concerned about traffic in the area, but would welcome the development if many of the historic aspects of the campus are preserved.
"You want the area to stay nice," Linda Johnson said.
Moss said no formal plan has been submitted to town officials and that any construction would take place over five to 10 years.
"We plan to sit down with the town and go through a conceptual plan," Moss said.
Supervisor Joseph Davis said the plan will go through a rigorous review. But he was ecstatic about the site returning to the tax rolls for the first time since the Civil War era.
"We're very happy about that," Davis said.
Residents of the Fairview Fire District, believed to be the highest-taxed fire district in the state, could benefit from the property's addition to the tax rolls. The district is home to two tax-exempt institutions, Marist College and St. Francis Hospital.
"Putting it back on the tax rolls will certainly help in the 4th Ward," town resident Bob Gephard, who lives near the site, said.
The psychiatric center remains open in new quarters off Route 9G. The developers plan to refurbish the sprawling old campus off Route 9 into a mix of residential and commercial uses, perhaps with a hotel and conference center. The deal includes more than one million square feet of existing buildings on the former campus, which was once a community unto itself with a fire department, churches, a bowling alley and more.
The property became available after the state closed or downsized its psychiatric centers in the 1990s. At its peak operation in the 1950s, the center housed more than 6,000 patients.
The development is expected to spark divergent reactions from residents. Supporters say it will bring construction jobs and customers for local businesses while providing needed housing in Dutchess County's most populous municipality.
Heavier Traffic is a Concern
But some are concerned about traffic along the already heavily traveled Route 9. The property is near Marist College, which is building new student townhouses on the east side of the highway. Hundreds of students cross Route 9 each day to get to and from Marist's main campus, and two students were injured last year after being struck by a car.
An average of 22,459 cars use Route 9 each weekday between Fulton Street across from Marist to St. Andrews Road to the north in Hyde Park, according to the state Department of Transportation.
Poughkeepsie's northern Route 9 corridor is not the only stretch of the highway that could have dramatic changes in the coming years.
Another proposal farther south on Route 9 from Hawthorne-based Ginsburg Development calls for hundreds of homes at the Casperkill Country Club site, not far from IBM Corp. A separate proposal in that area calls for two five-story office buildings, a hotel and conference center, restaurant and retail just north of Spackenkill Road.
Both plans need approval from the town planning board, as would the psychiatric center proposal.
The proposed developments have prompted some residents to call for a building moratorium in the town, a move they say is needed to preserve open space while town officials put the finishing touches on a long-awaited revised master plan.
The town board has proposed a residential subdivision moratorium and plans to hold a public hearing on the issue next month.
But some residents claim that does not go far enough and would like to see the ban extended to commercial development as well.
The Hudson River site's main administration building was completed in 1871 and is designated as a national landmark. Moss said Hudson Heritage plans to redevelop the site with an eye toward preserving its historic aspects.
Moss has been working on the deal since 1998 when Hudson Heritage was formed to purchase the property, and now, to write the next chapter in the site's long history.
"We're very pleased to have the opportunity," Moss said.
Davis said he hopes that chapter takes less time than the five years it took for the closing.
"Hopefully it will be done faster," Davis said.
Site Developers
Hudson Heritage CPCR Ventures is a joint venture of Hudson Heritage LLC and CPC Resources Inc., an affiliate of The Community Preservation Corp.
Hudson Heritage LLC was founded by developer Arnold Moss in 1998 to purchase a portion of the Hudson River Psychiatric Center in the Town of Poughkeepsie.
The Community Preservation Corp. is a non-profit mortgage lender that finances residential developments throughout New York and New Jersey. According to officials, CPC has invested more than $4 billion in 110,000 housing units over the past 30 years. CPC has been active in Poughkeepsie as well, with $29 million of investments for more than 900 housing units.
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