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Residents: Harlem Center Sale Too Slow
1998
by Rob Seetoo
The Poughkeepsie Journal
WINGDALE - What's taking so long?
That's what business owners and residents of eastern Dutchess County are wondering about the sale of the Harlem Valley Psychiatric Center.
"As far as I'm concerned, there's nothing left to negotiate. It's up to the state to act," said Edward Heelan, of Brewster-based Heelan Realty and Development Corp. he said he has been negotiating with the state for the purchase of the site.
Heelan wants to build senior citizen housing, recreation facilities and retail stores on the 961-acre property at the south end of the Town of Dover.
The 1994 closure of the center was a blow to the region. The Harlem Valley Psychiatric Center was once one of the largest employers in eastern Dutchess County. During the mid-1950's, it housed 5,800 patients and employed 5,000.
In the town of Poughkeepsie at the Hudson River Psychiatric Center, patient numbers continue to dwindle as the state moves toward community-based treatment programs. The facility treated 6,000 patients in 1956. In 1996, it treated 900 patients in community-based programs and just 200 on site.
In Dover, residents want to see the center transformed. And they aren't especially picky about that will be built there.
"I just hope it goes back on the tax rolls," said Evelyn Chiarito, a town resident for 15 years.
Both state hospital properties are exempted from paying property taxes.
Wingdale business owners and residents said the rumor mill about what will happen to the property has been working overtime, with speculation about an imminent sale popping up again and again.
"We can't survive on rumors and promises," said Skip Yeno, owner of Ben's Store, located about a half-mile from the former state hospital.
The Empire State Development Corp. is the state agency overseeing the sale of the Harlem Valley and Hudson River Psychiatric Center properties. Last November, when Heelan first announced he was in negotiations with the state, ESDC officials would not confirm the potential deal.
Now they will.
"Ed Heelan is one of the developers we've negotiated with," said John Buttarazzi, vice president for privatization for the ESDC. "A handful" of other parties have also been involved, he said. But the state officials aren't saying much more than that.
At the Hudson River center, where only a part of the site will be offered for sale, officials referred questions to the ESDC.
In the four years since the Harlem Valley Psychiatric Center closed, Wingdale business owners have become increasingly agitated about the lack of information they have been receiving.
"We're treated like second-class citizens down here," said John Hughes, owner of Harlem Valley Beverage, located near the center. "I thought the government worked for the people. I'm totally frustrated. The politicians are useless," said Hughes.
"It's been going on forever. I just hope the state sells the property," said Douglas Ciardullo, owner of Cousin's Pizza, who said his business dropped dramatically when the hospital closed.
"Everybody in the community felt the burnt of the loss," said Yeno of Ben' Store.
Supervisor Jill Way sympathizes with the local residents and business owners.
"I can understand the frustration of the local community. But, we don't have much information," said Way.
Tom Poster, spokesman for the ESDC, said the communities have been involved in the process of developing plans for the properties.
Way said a committee including county and local economic development officials met over a year ago to design a master plan for what they wanted to see on the property, but since then, the town has had no input.
"We asked the state if we could be at the table for the negotiations, but they said no," said Way.
Heelan, meanwhile, said the whole Harlem Valley region would benefit from his proposal. "It would be a huge job stimulus. A current drain on taxpayers would turn to something that will have a positive effect on the state and local tax base," said Heelan, who added he has major national companies interested in space on the property.
The process of selling the property already has lasted five years. Local residents wonder how much longer it could take.
Not much, according to Buttarazzi of the ESDC.
"This summer, we're very close to a sale," he said. But he didn't say to whom or offer a more precise timetable.
A local economic development official isn't so sure a sale is imminent.
"That's what they told us last summer," said Kathleen Schibanoff, executive director of the Harlem Valley Partnership for Economic Development.
Debt complicated potential sale
But Buttarazzi said circumstances have changed in the last year. In 1997, the state had a number of large-sized properties on the market. It also had to address the issue of environmental reviews of the sties, and debt associated with the property also complicated its potential sale.
"There's no question it's a large project and there's been a lot of complications. I've been ready to go for a considerable amount of time," said Heelan.
Business owners said there could be dire consequences if a deal is not close at hand.
"Without it, this place could be a ghost town," said Yeno of Ben's Store. "I've been a business owner here for18 years. The only thing going up is school taxes," Hughes said.
Residents and business owners hope that changes - soon.
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