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| 9/15/2004 3:25:00 PM | Email this article • Print this article | A Resurrection of the Harlem Valley Psychiatric Center in Dover, New York?
By Matt Palumbo
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| Kathleen Schibanoff in front of the newly Renovated Director's House. |
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DOVER, New York -- For a decade, people have been passing the shuttered Harlem Valley Psychiatric Center on Route 22 across the New York border, wondering what was happening with it. Answers finally seem to be on the way, and it appears that we may have a unique rural/suburban development phenomenon in our midst. The long range objective is to transform the psychiatric center into a commercial and residential complex that will transform Dover into a model economic entity in New York's Dutchess County.
But the plans are ambitious and the challenges are enormous. And, as we shall see, the size and scope of the project are exceptionally complicated. As development projects go, this endeavor faces significant hurdles before it even starts to meet its objectives.
Dover Knolls Development Co., LLC acquired 850 acres of the site, with 83 buildings, on October 27, 2003. The complicated, $3.95 million sale was originally announced on June 8, 1999. All business plans for the site are on hold while it voluntarily undergoes a four-season New York State (NYS) environmental impact study; which is phase one in a longer, public environmental study. The official term for this environmental study is State Environmental Quality Review, or SEQR (pronounced “seeker”).
Just over 9 miles from Kent’s Civil War Memorial, Harlem Valley Psychiatric Center has long been part of the area.
“My older brother worked there, and so did the woman next door – they weren’t the only ones, either,” a retired Kent native recalled. “I played baseball at their stadium, under the lights.” According to 93-year-old Art Seabury, an ageless source of history about Kent, another 10-12 Kent families got their paychecks from nearby Wassaic Developmental Center – in the days before residency requirements limited jobs to New York State residents.
So there’s little doubt the rebirth of these resources could reverberate into Connecticut.
One development that is not on the drawing board is a casino. The current owners say that their development plans do not include any gambling operation and that they have not been approached by any representatives of the Schaghticoke Indians -- the tribe in nearby Kent, Connecticut that earlier this year received recognition by the federal government, a prerequisite to the establishment of a gambling casino.
History
The Harlem Valley Psychiatric Center opened in the early 1920s, and was a 961-acre, self-contained city. It had its own train station for access to Manhattan, a reservoir and dam, water treatment and sewage treatment plants; a power plant, and a hospital. It also had a farm for food and meat complete with its own slaughterhouse, a furniture shop, cemeteries, a chapel, kitchens, a greenhouse, a bowling alley, swimming pool, baseball stadium, track, auditorium, gym, and more.
For years, the psychiatric center housed more than 5,000 patients -- and the state provided a paycheck to over 5,000 employees. When New York State closed the facility in February 1994, along with the severe reductions at the nearby Wassaic Developmental Center facility in Amenia, the region lost $75 million in annual payroll revenue. In addition, New York was still paying down $18 million in bonds on the abandoned complex.
Some areas remained in use: the “temporary” Youth Detention Facility only closed in March 2004, after 20 years in operation -- though dormitories for corrections officers remain open until October 31, 2005; the Harlem Valley Golf Club paid $50,0000 per year rent to New York to use and maintain the 9-hole golf course, but is now paying rent instead to Dover Knolls; Haven House – a 24-patient residence for the mentally ill at the northern end of the complex – remained open; and Mass is regularly celebrated at Our Lady of Solace Chapel by members of Dover's St. Charles parish (the chapel is hidden from Route 22, but within the complex, it stands out like a beacon among the overgrown lawns and neglected buildings of the rest of the facility).
And, of course, the public continues to use the Harlem Valley / Wingdale Metro North station – which is in the midst of the complex. There is also a New York State Electric & Gas substation on-site.
Otherwise the huge campus, and the generations of development that went into it, were left to rot. Heat and other utilities, along with maintenance, were cut off. The stately buildings suffered broken pipes and water damage. Moss and mold took possession of the much of the building interiors.
Many of the buildings are connected by underground tunnels. These allowed people to cross Route 22 safely, and come and go among buildings regardless of weather or darkness. This is a unique architectural detail. However, since the facility closed, it also means that hooligans who smash windows and break into one building can pass invisibly through the campus without detection. Vandalism has complicated the rebuilding process. People on ATVs have also damaged sensitive wilderness areas.
The Harlem Valley Partnership
To find something productive to do with the Wassaic and Harlem Valley sites, concerned citizens formed the Harlem Valley Partnership. It is a non-profit, economic development group. Mike Hagerty, the HVP’s Executive Director, says the group is pursuing economic and infrastructure development for these neighboring towns: Pawling, Dover, Amenia, North East, Millerton, and Pine Plains. All these communities, except Pine Plains, border Connecticut. On the Connecticut side, the territory represented by the HVP runs roughly from Squantz Pond, in the New Fairfield / Sherman area, up to the Massachusetts line.
“We played a major role in finding grants to do development re-use and feasibility studies for Harlem Valley,” Hagerty said. After two use studies and a series of public hearings, a “mixed-use” plan of both private and public use was approved. The town of Dover changed its zoning regulations to accommodate the plans. Meanwhile, the HVP was also spearheading the search for buyers.
“The properties were certainly not doing anyone any good just sitting there and decaying” Hagerty remembered. “The idea was to get the Wassaic and Harlem Valley properties onto the tax rolls, and providing jobs to the area.”
This was an easier task for the sold portion of the Wassaic site. New York initially at least, decided to keep the developed section. The undeveloped section was smaller, and suffered few of the huge roadblocks facing the Harlem Valley site. Allan Shope bought 430 acres at the Amenia site for $800,000 in 2000; and has been operating Listening Rock Farms there since then.
However, there has been some uncertainty about the remaining complex, now called the Taconic Developmental Disabilities Services Office, which overlooks the Tenmile River train station. Shope got the impression it would be sold; but the state has now apparently changed its mind. Its ultimate disposition remains unclear.
Convoluted though the resolution of the Wassaic site might be, it’s nothing compared to what has already happened at the Harlem Valley campus. The state wanted the eventual buyer to assume all responsibility for cleaning up the asbestos and lead paint in the existing buildings (even in buildings that will be razed), indemnify NYS against any liability regarding the closed landfills, and more. Of course, there was also the fact the state couldn’t sell the property -- it was collateral in $18 million of outstanding bonds.
In 1997, HVP did find an interested buyer that had deep enough pockets to not only buy the site, but also to indemnify the state against landfill liability and accomplish the lead paint and asbestos abatement projects. Negotiations began with the partnership of Tully Construction Co. from Queens, NY and Manhattan’s Pearson Partners (TP Enterprises). When the state finally did get a legal opinion that it could sell the site in spite of the outstanding bond debt, a sale of 885 of the 961 acres to TP Enterprises was announced on June 8, 1999. But while the deal was announced, it would take another 5 years to close.
The property for sale was limited to 850 acres. About 100 acres were given to the New York Department of Environmental Conservation (DEC) as easements and a buffer between the campus and the Appalachian Trail. Another five acres at the northern end of the campus was carved out for Haven House, which belongs to the New York Office of Mental Health. One state agency after another had to sign off on the deal. For example, the state Department of Transportation had to approve the sale since the campus has underground tunnels beneath Route 22 to connect buildings. The state Dormitory Authority also had its say, and added a stipulation to maintain dormitory housing for 300 employees of the state Department of Correctional Services (DOCS) through Oct. 31, 2005. And the New York Office of Children and Family Services was involved with the extended stay of the Youth Detention Facility after the sale. Another state agency, the Empire State Development Corporation, was created specifically to sell excess state property; it was that organization actually sold the property to Dover Knolls Development Co.
The site also went through the state review process for designation as an historic landmark in the early 1990s. It was considered “historic,” but not unique.
Additionally, HVP also helped pushed through changes in state regulations regarding state tax incentives. Dutchess County has been granted two square miles to use as an “Empire Zone” – designated areas throughout the State that offer special incentives to encourage economic development, job creation, and business expansion. Zone-based businesses that create new jobs are rewarded with an essentially “tax-free” business environment. Companies in the Zones retain benefits for up to 10 years, with additional savings available on a declining basis in years 11 through 15.
Originally, the two square miles of Empire Zone had to be contiguous. However, after lobbying by HVP and others, Dutchess County was able to split up the area into separate parcels. The footprints of approximately six buildings, totaling 10.14 acres, at the Harlem Valley site now have Empire Zone status; as well as 3.88 acres of Listening Rock Farms. These 10-15 year tax incentives did not begin at the moment of sale. Rather, the developers and local governments jointly decide when to recommend to the state when the businesses are ready to take advantage of the benefits.
As the Harlem Valley sale snaked its way through the New York state bureaucracy, the September 11, 2001 attacks also changed the equation. Tully Construction Co. became increasingly involved with cleaning up downtown Manhattan; and was replaced in the deal by Long Island’s Benjamin Development Company. The buying partnership changed from TP Enterprises to Dover Knolls Development Co. This actually may have helped matters, as Benjamin Development has already redeveloped two shuttered NYS psychiatric facilities on Long Island – in Melville and Central Islip. Because Benjamin Development has expertise in residential development, while Pearson Partners specializes in commercial development, the various state agencies actually felt more comfortable with the new partnership, according to local business officials.
Current Challenges
Ultimately, the red tape ran out, and the sale was closed on October 27, 2003. Dover Knolls is the new owner of the campus, and embraces the mixed-use plan.
In a press release announcing the sale, Al Benjamin of Benjamin Development said “we are very excited about the acquisition of the land on the former HVPC site, and the economic opportunities available to the residents of the Harlem Valley, We are confident that this smart growth development of the site will result in the creation of thousands of jobs in the region and help pave the way to an economic renaissance in upstate New York.”
Jill Way, Dover’s Town Supervisor, was quoted in the same press release: “the economic and commercial development of this land will mean more jobs and an increased quality of life for the region. Our residents have been supportive of this purchase and recognize its significance in helping to continue keeping our local economy on the right track.”
The first economic impact of the deal on the local economy was switching the campus onto the tax rolls. Dover Knolls is now paying $100,000 a year in property taxes. As the site comes back to life, its tax responsibilities will be re-assessed.
Once the smoke cleared from the sale, Dover Knolls Development Co. hired a local Project Coordinator, Kathleen Schibanoff – the longtime Executive Director of the Harlem Valley Partnership who led the long search for a buyer and helped shepherd the tortured process of closing the sale through the endless state bureaucracy. As the person who lived through all the: town zoning meetings; the development plans; grant applications; historic landmark hearings; the Empire Zone tax incentives; and more, she would appear to have all the credentials needed to take on such a project.
Schibanoff met with the KentTribune.com at the old Director’s house, atop the Harlem Valley golf course. Even while the facility was open, the Hospital Director hadn’t lived there for years. Like the other buildings throughout the campus, the hosue had been neglected and abused. Dover Knolls found the original blueprints, and with Dover’s permission, has nearly completed restoration of the house to its original pristine condition. Restoring just this one building, with its original slate roof, has cost Dover Knolls nearly $1,000,000 and seven months. This gives some indication of the challenges Dover Knolls faces in restoring the other dozens of other remaining buildings on the property.
“The town let us restore this one house without finishing the environmental studies because we’re restoring the original footprint and design; plus, we need to have a useable office within 850 acres,” Schibanoff explained. The site is huge – 850 acres equals 1.328 square miles. However, it’s surprising how little of the land is available for development.
“With the Swamp River, the reservoir, and other environmentally protected areas with buffer zones running through the site, only about one-third of the property can be developed – and most of that already has been,” Schibanoff said. The site sits in the environmentally sensitive Tenmile River basin. Further, the Swamp River enters the Great Swamp – which ultimately supplies drinking water to NYC. There are buffer zones surrounding sensitive areas throughout the site, which prohibit development.
Beyond the environmental restrictions, there are the staggering prices of rehabilitating the complex to meet building codes, and then developing it for commercial and residential use. In a 2001 draft letter from Pearson Partners, TP Enterprises estimated the following cleanup costs:
Repairs to infrastructure (water mains, sanitary and storm sewer upgrades, electrical repairs, roadwork and landscaping: $17 million;
Asbestos abatement: $30+ million;
Repairs to water supply, water treatment, and sewage treatment facilities: $3+ million (this brings the total repair estimate of merely returning the site to code to $50 million; but does not include repairing recent vandalism at the dam);
Aggregate cost for commercial development will range from $35 to $75 million.
Incorporating these mandatory investments is vital to understanding the investment of Dover Knolls Development Co. in resurrecting the property. At first glance, the $3.95 million price looks like a ridiculous bargain – at $4,647.06 per acre, it certainly seems that way.
However, adding the outdated minimum estimate of $50 million of required repairs and upgrades brings the price to $53.95 million, or $63,470.59 per acre. Keeping in mind that roughly only one-third of the property (about 280 acres) can be developed, the useable property price rises to $192,678.57 per developed acre. Further, as a mixed-use development, much of this remaining property will be designated for public use – reducing even more the acreage developable for commercial and residential purposes. This is a substantial investment without any immediate returns.
On the other hand, once the buildings are renovated, they will yield about 2 million square feet of interior space. Using that much space in a rural area is a significant challenge. Some of the buildings may be razed to ensure there will be enough parking for future residents, employees, customers, churchgoers, commuters, and other visitors – but there will still be a lot of space.
Danbury Fair Mall has 1.3 million square feet of retail space; 500,000 square feet of mall space; 900 seats in the food court; and 6,433 parking spots. The Danbury Fair Mall can draw on an area population of 1.1 million, with an average income of $113,000. While the data on the Poughkeepsie Galleria web site is not as complete, it has 1.3 million square feet of space. Neither mall has as much space as Dover Knolls, though they can draw on larger populations. Poughkeepsie alone has 30,000 residents in less than 5 square miles. Combined, all the towns in the Harlem Valley Partnership have about 27,000 people. Adding Sherman, Kent, Gaylordsville, Sharon, and Cornwall on the CT side of the border doesn’t help a whole lot.
A key question then remains: While recognizing that not all this space will be used for commerce, will businesses that settle in Dover Knolls generate enough business to thrive?
Positive Signs
While it’s easy to focus on the abandoned buildings, broken windows, and neglected landscaping, there are still strong signs of life at the complex:
The Harlem Valley Golf Club is seasonal operation, attracting golfers from a wide area with affordable prices and a friendly atmosphere. Haven House closely resembles a country inn. Its neatly mowed lawns clearly segregate it from the other, unused, homes along the north end of Hutchinson Ave.
The biggest surprise is Our Lady of Solace Chapel – part of St. Charles Borromeo parish in Dover. While called a chapel, Our Lady of Solace boasts ten magnificent stained glass windows. The white and blue vaulted interior, with four modern chandeliers, is immaculate. Built in 1962, it is over twice the size of Kent’s Sacred Heart Parish. The chapel sponsors Masses on Saturday and Sunday, as well as Confession on Saturday and choir practice on Thursday night.
A visit to Sunday Mass revealed a surprisingly young, vibrant, multi-racial congregation – complete with organist and choir. The Kent Tribune lost count after 125 parishioners.
“It’s usually even more vibrant, but it’s still Summer, said Father Emmanuel Quarshie. "Once CCD classes start again for the children, you’ll see much more activity.”
Father. John Backes, pastor of St. Charles / Our Lady of Solace, looks forward to the rebirth of the facility.
“Originally, New York was happy to have us build a Chapel in the Center because so many of the patients, employees, and their families were Catholic," he said. "The Chapel took root in the community; and even 10 years after the hospital closed, we’re bustling with activity. When development begins, we look forward to welcoming people and families of all faiths to the area. Dover Knolls has been a good neighbor to us since they took possession of the Center, and I’m scheduled to meet with them soon to find ways to further develop our relationship.”
If these outposts can thrive for ten years in the middle of a shuttered facility, it’s possible to be optimistic about Dover Knolls rebuilding a healthy community on the campus.
The Development Plans
After the sale closed in October 2003, Dover Knolls voluntarily started the first phase of the state SEQR environmental review process. This first phase will study plants, birds, reptiles, and amphibians; and takes four seasons to complete. Climate-specific behavior of affected species, permanent and migratory, needs to be recorded. The study will determine how much of the available open spaces can actually be used for various purposes – without adverse environmental impact. Dover chose Dr. Michael Klemens of Rye, NY to head the study, for which Dover Knolls is paying the bill.
Until this first phase of the SEQR process is completed in November, Dover Knolls won’t know how many resources it has to work with and can not, consquently, commence working on specific business plans, such as improvements to the golf course or a concrete number of housing units or stores.
However, there are some rough ideas, and Dover Knolls is having pre-application meetings with Dover to take care of as many preconditions as possible. That way, the business plans will sail through that much more smoothly when the details are available.
Once the report on the first phase is submitted and digested, Dover Knolls expects to formally submit its development application to Dover by the end of 2004. That’s when the SEQR process begins in earnest.
The town board and town planning board will hold hearings studying the environmental impact from all elements of the Dover Knolls development. This could become quite complicated, as Dover Knolls is planning a mixed use development. The state of New York will also be involved, because the development is on state highway 22. Some SEQR procedures have dragged on for years – which is again why Dover Knolls is having pre-application meetings with the town of Dover.
Schibanoff, the project coordinator for Dover Knolls, recognizes the challenges in bringing the complex back to life. But she also sees a lot of opportunity -- she says can see Dover Knolls becoming downtown Dover:
“We want to create a ‘walkable village,’ with a commuter rail station, homes, large and small retail, including outlet stores, a hotel / conference center and spa, an 18-hole golf course, health care, baseball stadium; track; hiking & biking; and more.”
Education is also a possibility for this site that so resembles a college campus.
“We showed the site to a few colleges, but none of them could afford the cleanup costs," said Schibanoff. "However, since that problem will be out of the way, we’d love to have a college annex. That very much fits into the community we want to create here. Light industry is also possible.”
The final building constructed on the site, Sullivan Tower, was built in 1964. It housed the hospital and research labs in its ten floors. On the map, it’s designated as building 85; and, ironically, is connected to building one. Dover Knolls foresees its metamorphosis to a hotel and spa.
“It will help us build a tremendous resort facility,” Schibanoff said. "You need a good hotel to attract major golf tournaments; and we’ll have the added advantage of being the only course where you grab your clubs, get on the train at Grand Central, and disembark at the clubhouse. The train is an incredible asset for us.”
She adds:
“Of course, this is dependent on the SEQR results; but we want to expand the golf course to 18 holes, and offer a variety of homes alongside the course. We’ll offer a range of prices; and don’t want to be as exclusive as the River Oaks Club in Sherman, or some of the other private country clubs. Our goal is to keep the course open to the public. At the same time, we want to take care of the Harlem Valley Golf Club. We recognize the sweat equity they’ve put into maintaining the course. They’ve paid the state $50,000 a year to operate the course; and we’ve been happy to extend that deal for this year, and probably next year as well. We’ve committed to keeping 9 holes open for them through any course construction.”
“Likewise, we’re working with Our Lady of Solace Chapel. The Arch Diocese of New York owns the chapel, but not the land. We’re working on a way for the Arch Diocese to take possession of the land the chapel is on, and (develop) enough property for adequate parking.
“Parking is a problem throughout the site. Obviously, the patients didn’t drive back and forth, so they didn’t need parking spots. We’ll need to add a lot more; and that may mean knocking down some buildings. Parking at the Metro North station may also become an issue. Once we start using the power plant and factory again, we may need those parking spaces, or at least the right of way in that lot.”
If It's Built, Will They Come?
These are substantial, but relatively small complications when compared to the big question: if they build it, will they come? More specifically, how long will it take to build, and how long will it take Dover Knolls to become a buzzing town center?
“It’s a ‘chicken or the egg’ thing,” Schibanoff explains. “We’ll need to have residents to support rebuilding the infrastructure; but commercial tenants are a key in attracting the residents. At the same time, we need a hotel and conference center to sponsor substantial golf tournaments; but we’ll need an upgraded golf course to support a hotel and conference center. There’s no doubt this will take years, but with the ability to concentrate so much activity in one place, and people continuing to migrate north from New York and Westchester, we should be able to hit critical mass. Dover Knolls is a perfect spot for commuters. I’ve had people tell me they can get to Grand Central faster from here than they could when they lived 30 miles from Manhattan.”
There are roughly 250 acres on the west side of Route 22, and about 600 acres on the east side. The west side houses the train station, power plant, factory, farm, director’s house, and sewage treatment plant. The reservoir, dam, water treatment plant, and most of the buildings sit on the east side.
Development plans are different for each side, but connected.
But again, all of this is contingent on the results of the NY SEQR results and negotiation with Dover.
Of course, creating 9 new holes for the golf course and new homes on the west side of the complex will be far simpler than reclaiming the east side.
“We may get things done faster on the west side, but no one should think we’re forsaking the east side," said Shibanoff. "It’s the crown jewel of the development. We’re looking at housing on both sides of Route 22. Among the commercial and public structures on the east side will also be senior housing – units for people 55 and older will not only bring balance to our community, but will also reduce the impact of the new housing on the Dover school system. We’re in this for the long haul, and realize completing the development will take years. It’s not something you can judge on a minute-by-minute basis.”
Roger Akeley, the Dutchess County Commissioner of Planning and Development, is confident about both the Dover Knolls and Listening Rock Farms development.
“The developments there are exciting, forward-looking, and will evolve to benefit Dover and the whole area,” he told the Kent Tribune.
“One of the positive things already happening is people referring to Mr. Shope’s property as ‘Lstening Rock Farms,’ and not ‘Wassaic Developmental Center’ anymore. The barn repairs, agricultural initiatives, educational programs, and alternative fuel projects he’s already started show a lot of initiative; and are already paying dividends to the community. Dover Knolls isn’t as far along, but we’re excited about seeing their business plans after the first phase of the SEQR results are available.”
He explains:
“Given the Metro North station in the middle of Dover Knolls, a ‘transit oriented development’ is entirely appropriate for them. It makes sense for housing to be a substantial element of their complex – along with the commercial and public elements of the mixed use plan. Over the next ten years, both developments should provide a good economic impact to both the New York and Connecticut towns around them.”
Says Shibanoff:
“There are so many seminars where professors muse about ‘walkable villages,’ ‘transit oriented developments,’ and reversing sprawl, but we have everything here to make it happen in real life, and to become a real-life model for how it’s done. We have a chance to put everything together harmoniously in one spot, and be an engine for the local economy.”
Local reaction in New York and Connecticut is enthusiastic.
“I’ve been getting several phone calls a week from retirees looking to get on the waiting list to move here," said Shibanoff. "They’ve heard they’ll have easy access to NYC, and won’t have to take care of big houses or yards anymore. On the other hand, I’ve also received some calls from people in Kent who insist they know we’re building a casino for the Schaghticokes. Nobody from any element of the Schaghticokes has approached us; and it’s not in our plans.”
The risks and opportunities at Dover Knolls are significant. There’s no doubt the housing market is starting to find Dover; but Dover Knolls is looking to become much more than just a bunch of subdivisions. What happens there will take years to create; and will affect this section of NY and CT for decades.
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Reader Comments
Posted: Thursday, August 18, 2005
Article comment by:
lorenzo
My grandmother is buried in the cemetary at Harlem Valley Psych Center. NY State sold the two cemetaries as part of the sale- what rights do we have as family members who do not want our grandmother's burial site to be either abandoned and over run as it has been two years since the land was sold, or bulldozed? I have only received proof that my grandmother is buried there and while there are only probably a handful of family members of other deceased residents alive, was there any discussion about the graves, or reinterement of these remains upon family request ? I think that this is so wrong to desecrate a grave site. What info. is available to family members?
Posted: Friday, March 04, 2005
Article comment by:
Scott
Some areas remained in use: the “temporary” Youth Detention Facility only closed in March 2004, after 20 years in operation -- though dormitories for corrections officers remain open until October 31, 2005
Im pretty sure that date should be October 31, 2003, it deffenatly cant be in 05' though
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