Joint venture formed to develop property. . in Poughkeepsie

Real Estate Weekly, Jan 8, 2003

Plans to transform a portion of the former Hudson River Psychiatric Center (HRPC) in Poughkeepsie into a mixeduse development took a major step forward today with the announcement that Hudson Heritage LLC and CPC Resources, Inc., a subsidiary of The Community Preservation Corporation (CPC), have agreed to form a joint venture to develop the property.

Concurrently, Hudson Heritage and Empire State Development Corporation announced agreement on a redefined Purchase and Sale Agreement that will facilitate redevelopment of the property.

The Hudson Heritage CPCR Joint Venture is acquiring the western portion of HRPC, approximately 150 acres along Route 9. This parcel includes most of the buildings on the site including the national landmark Main Building. The purchase price is $2.0 million.

Charles A. Gargano, chairman of Empire State Development Corporation, said, "Our agreement rightfully allows the local community to determine how to develop this property. The property has tremendous potential, and we are confident that the developers working with the local community will best decide its future uses. The State thanks Hudson Heritage and CPC Resources for investing in this project."

Arnold Moss, president of Hudson Heritage, stated, "This agreement with the state will allow us to more effectively move forward with our development of this landmark property. We hope to close in a six-month to one-year period."

Moss added, "We are delighted to have CPC Resources as our partners in this important and challenging project. They have proven themselves time and time again as a major force in quality development that addresses the needs of the communities in which they operate. We believe this project is of critical importance for the Poughkeepsie community and the Hudson Valley region. It will generate tax revenue for a property that has never been on the tax rolls and will create hundreds of jobs for the region. We plan to work closely with the Town and County in the restoration and reuse of this landmark site."

HRPC transferred its operations in 2001 to the Ross Pavilion on property to the east of Route 9-G. The state is retaining the 160-acre parcel that runs east to Route 9-G. The State is also retaining the waterfront property to the west of Route 9. The Catholic chapel will remain on land that the state is retaining.

Potential development on the property may include residential, hospitality and retail/commercial uses. The joint venture seeks to adaptively reuse the Main Building, a National Landmark building designed by Frederick Withers and completed in 1871, with a mix of market rate and affordable rental apartments. The development will also be sensitive to the landscape planned by Frederick Law Olmstead and Calvert Vaux, designers of New York City's Central Park.

Michael Lappin, president and CEO of CPC, said, "The project has goals that mirror our mission as an organization. When completed, it may be CPC's largest development outside New York City. We are excited to be part of preserving this National Landmark and restoring this property to the community's tax base. It underscores our commitment to the Hudson Valley region."