Beacon Dispatch

East Main Mills or Bust

Does the revitalization of Main Street depend on a bold new apartment project?

by Michael Daecher

Sitting at the corner of Main St. and East Main is East Main Mills: a collection of abandoned buildings that 100 years ago housed the most modern straw hat factory in the country. Over the years, ownership has changed, and the factories have produced everything from furniture, to baby carriages and electric blankets. But today the buildings are vacant, with the last business, Unico countertop construction, moving to Newburgh in 2003. The new owners, real estate developers William Ehrlich and Alan Marks, have a vision to transform East Main Mills into loft-style apartments. If the plans are approved by the Planning Board and City Council, the project would be one of the largest development projects ever proposed on Main Street. Many people living in Beacon welcome the investment to help revitalize the downtown area. But others have raised questions about whether or not the city has the infrastructure to support such an ambitious project.

William Ehrlich, President of Milton L. Ehrlich Inc., a Manhattan-based real estate firm, has a significant investment in the future of Main Street. In addition to East Main Mills, he also owns the 1930's era movie theater, the old DMV building, and the Rite Aid building. In a recent interview, he explained why the East Main Mills apartment project is key to the revitalization of Main Street.

"Main Street needs economic vitality. It needs a kind of rejuvenation with a 24 hour life," Ehrlich said. "By bringing people onto Main Street who live and work there, who have a commitment and an involvement, it will make it viable. ... Right now Main Street is underutilized. The problems the stores are having are serious. If there are more cars and more foot traffic, it will breed success. And success feeds on itself. It Beacon is perceived as a bustling place, people will be attracted to it. They'll want to be associated with that."

With a $20 million budget, Ehrlich's vision for East Main Mills is ambitious. The plans currently under review by the City of Beacon Planning Board include renovating the existing four-story main building, and creating 4 new structures, to house a total of 135 loft-style spaces, ranging in size from 600 to 2000 square feet. Prices of the apartments – some of which will be rented, and others owned – have not yet been determined. There would also be about 1600 square feet of retail space.

The first phase of the plan would be the renovation of the main building, housing 40 units. Other factory and warehouses currently residing on the property would then be torn down to make way for new construction, and a green walkway would be created along Fishkill Creek, reclaiming for the public what for years has been an industrial work site. According to documents submitted by the developers, construction was originally scheduled to begin later this year, and create about 30 new jobs. But the actual date depends on approval from the city. The full project will take about three years to be completed.

Before construction can begin, the developers need to answer a number of questions about how the project will impact the city. The current plans call for a two-story parking structure to be built in the center of the complex to help accommodate parking for 174 vehicles. (This number is based on a zoning ordinance that requires one parking space for apartment unit plus one quarter space for each bedroom) This structure, alone, represents a significant investment on the part of the developers.

Bringing 174 additional cars into the center of town will create additional traffic, but questions remain as to how much that traffic will impact the streets in the area surrounding East Main Mills. A study done by the developers for the Environmental Assessment Form finds that there would be little or no impact on the three adjacent intersections to the apartments. Additional studies are underway to determine what impact 174 additional cars would have on surrounding streets. In particular, there has yet to be any information made public on how Water Street, Spring Valley Street, and Verplanck Avenue would be affected, as these are the main routes to reach 9D and Route 52.

When asked about the East Main Mills project, Mayor Clara Lou Gould expressed concern about how the development would affect the character of the city. "To me that's a lot of apartments," she said. "I go to church at St. Joachim's, and every week when I come out the traffic seems to get worse. They really have to do a proper traffic study to see how the local roads will handle it. You have to figure out what the solution is before you build." Detailed traffic studies are scheduled to be delivered to the Planning Board later this year.

Some Main Street business owners see opportunity in the new development. Ricardo Diaz, owner of The Framery, thinks the new residents could have a positive effect on local businesses. "These people have to decorate their walls, buy some art, and find new home furnishings, and Main Street is where they'll do their shopping,” said Diaz. "We have restaurants and cultural entities that will benefit. They'll use the shops, sit in front of the pie shop, have some coffee, say hello to their neighbors, and give Main Street life that is missing right now."

Pam Wieder-Bier, owner of Duso Travel, was taken aback when she heard how many apartments are being planned. "But," she added, "I would hope that it would be a positive effect on my business. I would hope the folks moving into the apartments would patronize the Main Street businesses, since that's where they live. I've found that most of the newer folks that have moved into Beacon want to do business here in Beacon."

The East Main Mills project could also contribute to an increase in real estate prices in Beacon. According to the New York State Association of Realtors, median real estate prices in Dutchess County increased by more than one third between 2001 and 2003. As property values increase, many local residents may benefit by selling their homes at a substantial profit, but those who stay in town may find it harder to meet their property tax bills.

The City Council will make the final decision about the future of the project, based on the recommendation of the Planning Board. While there is no official timetable or deadline for submission of the final project plans, the public will be notified when the public hearing has been approved and scheduled by the Planning Board. At that meeting the community can voice their concerns before a final decision is made. To get to the public hearing, the developers have to submit enough information to satisfy the questions of the expert consultants working for the Planning Board. It can be a long and arduous process, especially for a development as complex as the East Main Mills proposal.

Few would argue that attracting more people to Main Street is necessary for local businesses to thrive. But convincing local residents that the plan will benefit the town has not been easy for the developers.

Ehrlich and Marks have been speaking to Beacon residents, explaining their vision for East Main Mills at City Council, Planning Board, and informal meetings with local residents. To many, the project sounds good in theory, but questions about infrastructure need more detailed answers.

On June 16 the Greater Southern Dutchess Chamber of Commerce hosted a meeting of the Beacon Economic Development Task Force to discuss proposed development projects in the city. David Deleo, President of Northview Restoration Corporation, attended the meeting and is cautiously optimistic about the project. "There's no question in my mind that residential space could help revitalize Main Street," says Deleo. "But it can't be at the expense of people who have been living here for decades. A 2000 square foot space is the size of some 3-bedroom homes. That kind of space is going to attract more than 1.25 cars. So the parking is a real concern. The Planning Board has to ask and answer a lot of detailed questions before they approve these plans."

Earlier this year Alan Marks met with local residents at Bulldog Studios to discuss the plans. Local resident George Mansfield attended the meeting, and is concerned about local development without proper city planning. "I'm all for developing it – it would really benefit that end of town and bring a lot of life to that area. But I'm concerned about the density," Mansfield said. "They've disregarded the other side of the creek, which is where I live. All the cars are going to be directed to Spring Valley, a narrow street with a lot of kids on it."

Mansfield continued, "The city is operating without any kind of vision, without any kind of plan," he said. "They just respond to variances as they come up. They have no vision prior to that. When you combine a developer with a lot of money and a city with no plan, you don't know what you're going to end up with. The city needs to digest what the city is going to be before handing out approvals."

In fact, the City of Beacon does have a master plan. But there have not been substantial updates made to the plan since 1974. "It's not the developers' problem to solve the traffic problem," says City Councilman Lee Kyriacou. "The property is zoned for the density, but the city has done none of the work on the infrastructure to support density. That whole area was designed in the horse and buggy days, when there were no cars. All of a sudden you'll have all the population density we had 100 years ago, but with no modern planning. We've done simple, tactical things, like installing traffic lights, but we've done nothing to address the long-term issue."

"We've been making updates every time a zoning change is made," Mayor Gould countered. "The changes we've made have to be published, but I don't think re-drafting the plan should come until we do a comprehensive review of what is currently in place."

If the city has trouble meeting the needs of the current proposal, one has to question the original decision to approve the variance to allow development of up to 150 units. The area was originally zoned for light industrial use, but the city Zoning Board of Appeals granted the variance to allow residential development in 2003. Why didn't they anticipate the challenge to existing infrastructure?

"At the time the City Council thought that 150 units was too much," said Mayor Gould. "But the Zoning Board of Appeals makes the change, and the City Council can't override it. We don't have that authority. "

The lack of comprehensive planning could have real implications for the city. "My concern is that if we get the density down, we'll lose the old factory to demolition," says Councilman Kyriacou. "Restoration is much more expensive than new construction. And if the density comes down, at some point there may not be enough units to support restoration. Given that our heritage is as a factory town, we should try and build those old structures into the plan. I'll be saddened if we dial down density and lose the factory because we didn't do our homework."

Sources who wish to remain anonymous have reported that Ehrlich and Marks' plans for East Main Mills have recently changed to focus on Georgetown-style town houses. The revised plans would help save on renovation costs and address concerns about density. None of these plans had been made public by the time this paper went to press.

"We're exploring different possibilities," said Ehrlich, when asked about the reported changes. "We're taking everything into consideration, whether they're economic, design, or political considerations. We're trying to be good citizens. We're trying to be smart business men, interested in the long-term future of the community."

There are also questions about when Ehrlich is going to renovate and re-open the other properties he owns on Main Street, like the theater and old DMV building. "Right now it's a chicken and egg situation," said Ehrlich. "You have to start with one or two projects and prove they're a success. I get a lot of criticism about not developing those properties. But in order to do something with those buildings, you have to justify the economics. You have to generate the activity to make them economically viable."

"My ideal game plan would be to develop these in parallel with East Main Mills," said Ehrlich, "so these projects are mutually supportive of each other. I'm trying to find users and put something together for the theater. The community would like to see it remain a theater, but it's not easy to have a theater of that size with one screen compete with all of the multi-plexes. It has to be something that is atypical. I'm working on several possibilities. If I could find a solid idea, I would start tomorrow."

Ehrlich and Marks still have a significant amount of work to do before the public hearing will be granted by the Planning Board. If the plans for East Main Mills have changed significantly they'll have to start the review and approval process over again.

But East Main Mills is only the first of what will surely be a series of projects to renovate Beacon's dilapidated factories. To date the city has responded to development on a case-by-case basis. The decision to commission a new Master Plan may depend on community involvement, with Beacon citizens sharing their concerns at public meetings. Whether it be parking, traffic, or the additional burden on aging sewer lines, anticipating the eventual restoration of Beacon's old factory spaces may be the best way to ensure the city does not grow at the expense of its unique identity.

Planning and development in Beacon is meant to be a public process. If development in Beacon concerns or interests you, and you'd like to learn more, the agenda for the monthly City Council meetings is available on the City of Beacon Web site (http://www.cityofbeacon.org). The Planning Board meets the second Tuesday of each month at 7:30, and the City Council meets on the first and third Monday of each month at 7:30. Both meetings are open to the public and are held in the court room of the Municipal Center.

Beacon Voices: Ron Sauers

By: Jeffery Battersby

The interview begins with a slideshow; Ron Sauers manning the controls in a makeshift theater of chairs, coffee tables, and a screen of white poster board leaned against a wall at the back of Ronnie Beth Sauer’s Feng Shui studio. He’s displaying a collection of photos, old and new, of the City of Beacon in its heyday, then at the lowest point of its demise, and finally where it is today. He’s a developer, but he seems more like a proud father opening up his wallet to show you pictures of his children. A collection spanning a lifetime, from the day they were born to the day they grew up and got married. It’s an interview that requires no questions because, like any proud father, Ron Sauers is in love with what he’s talking about.

The Sauers came to Beacon in the early nineties when the East and West Ends of Main Street were little more than burned out, boarded up buildings, drug dens, and rooming houses—a setting which made it the perfect backdrop for the movie Nobody’s Fool. At that time the middle of Main Street was only slightly better, with a few operating businesses, all of which seemed to be struggling to survive. But while the City was clearly in dire straights, the Sauers saw something that gave it potential; something to hope for underneath the City’s sad exterior. What Beacon is today is due in large part to the Sauers’ ability to see through Beacon’s rough exterior to the possibilities beneath and their willingness to take the risks necessary to restore the City to its former glory.

Some people have called the Sauers visionaries, a statement that Ron laughs off with a self-deprecating pass of his hand. “If we were visionaries,” he says, “we would have bought up the whole Main Street.” But there is no question that they have a certain visionary quality. A quality without which Beacon might still be a dried up old mill town with no obvious value beyond the mountains and the Hudson. Ron’s vision is clear, and it begins with a slide of Beacon’s Main Street, circa 1940.

This is when all the shops were alive and well in Beacon. If I had a bigger picture you could still see hitching posts. Then the mills left and everybody left and “mall heaven” started opening; that was the death of most main streets throughout the country.

Through a process of elimination I looked at Peekskill and I looked at Poughkeepsie, which has beautiful architecture, which is really what I started off looking for. I had always been a Frank Lloyd Wright type guy, then I got involved with a project in Jersey with a friend of mine and I started looking at these old buildings and I thought, if we don’t save these, no one will ever build anything like them again. Then I looked at Newburgh, which also has wonderful architecture. I was interested in Newburgh because of the four traffic lanes and the diagonal parking, because parking is always a major consideration for any small town. Then I came to Beacon and the scale looked doable. It just looked like you could make something happen here if you could get it started.

My opinion at the time was that Beacon went downhill so fast—the mills left and then the malls opened—and for the most part they didn’t get into the second and third generation of re-muddling, as I call it. So, even though a lot of the buildings were boarded up, when you took them apart, even though they were tired and rotten, there was still an indication of what the original building looked like. Plus, our historical society is one of the best I’ve ever seen as far as their archives are concerned. They continuously collect pictures of the city’s buildings, so you can find a great picture of nearly every store in town, and see what it used to be.

The first building I bought, interestingly enough, was three different purchases. Prior to zoning they had whacked it up, but it was really one building, so we had to buy three buildings to get one back together. It took a couple of years actually, and then we bought another one right next to it. What I wanted was to get several buildings side-by-side, instead of getting one little building in the middle, so we would have an impact on the street. That was our approach at the time. The first buildings we got were attractive to me because they were burned out and vacant, and the one thing I didn’t want to get involved in was having any kind of impact on anybody’s life. I didn’t want to have to relocate people in order to start working on the buildings. So these were ideal for us.

At that time in Beacon, and this is not a Beacon knock, I think the prevailing attitude was, “It’s down and out and there’s no hope.” So we tried to take advantage of the press. When we started renovating the first building, we had the Poughkeepsie Journal and the Beacon Free Press come by and write articles to let people know that something good was happening. So that was our initial M.O. Back then the basic comment we got from people walking by was, “It’s gonna look nice, but you’ll never change Beacon.” And they would point to the old railroad depot and say, “and that guy’ll never fix up.” The truth is, he was the first building owner that came to us and said, “What do you think we can do with my building?” So you know, there was a light there.

We had talked to a lot of building owners about getting started, and it was a question of who was going to start first, so Ronnie and I just decided that we’d do it and if it didn’t work we’d just board it up. The City wasn’t sure what to do either. On the West End the sidewalks, curbs, roads, and lighting had been fixed during urban renewal, but they were never able to get to the East End. So we were trying to get the road and sidewalk work done on the East End. By chance, Ronnie had made a connection up at Cornell with a graduate planning class and we ended up being very fortunate. The professor came down to look at the City and then he and the whole graduate planning group took our main street on as a class project. Several people throughout the City entertained them for a few days and they slept over and they kept coming back and forth and they eventually handed us the design that you see now; the granite curbs, the planters, and the trees. Ronnie was on the council at that time so she was able to take the plans straight to the council. That was fortunate because then the City had something in their hands that they could use to go out and get funding from the road agencies or federal government.

This is one of my favorite stories. When my office was where the Pie Shop is, some old guy came by and I’m so sorry I didn’t get his picture and his name. First he said, “You‘re crazy,” and then, “Well, ya know, it’s gonna look nice. You’re never gonna change Beacon though, no matter what you do, you’re never gonna change Beacon.” And with that he kind of toddled off. This was ten years ago, so I can refer to him as an old guy… But, he came back and I missed a golden opportunity again, but it was a wonderful experience for me. He came back and he stood with one foot on the new blacktop and one foot on the new granite curb, right next to the new planter, the tree was in it by that time and he looked at me and said, “Ya know, you’re never gonna change Beacon, I told ya that.” And it finally dawned on me, and this is a good thing to know, and I pass it on specifically to groups or anybody that’s going to jump into this pool. The naysayers. They’re always there. And if they hit you on the wrong day when something went wrong with the building, or you’re hemorrhaging money and they do their naysayer routine, it really puts you down the drain for a while. So I always like to pass that on. No matter what you’re doing, there are going to be naysayers, or people who can’t quite grasp what’s going on, or who don’t see the big picture, or who don’t see that there is some hope for change. I love to pass that story on.

In reality, getting these things off the ground—assembling the buildings and the design and the redesign—it’s always such an agonizingly slow process no matter how fast you can work on getting it going. You know, Ronnie’s always teasing me saying, “You can always do it so much faster in your mind than you can in real life.” Back in the beginning I knew that the changes would eventually get to the West End. But I’m talking about a situation where, once the East End was alive and well, maybe ten to fifteen years after we started, you could project that maybe ten years beyond that, the West End would be alive and well too. Then Dia came and the impact of Dia began to sink in. Suddenly there were all these people that wanted to be here and it was clear that what took ten years at the East End of town was going to happen in three on the West End. And it’s happening, and that’s a wonderful thing. Beacon will never be finished in the sense of “finished.” But it will have a major main street that’s alive and well. And then it will just keep progressing from there.

I do find myself trying to justify the spike in real estate prices. That’s a scary thing. Although it’s very normal for what’s happening here right now. But one of the big questions I get asked is whether it’s spiking now and then the bottom’s going to drop out. I truly don’t believe that though. We’ve hit a spike because everybody wants to be here. I do hope it levels out and we get into a normal appreciation on real estate, but sometimes I lose the vision for what we’re relative to.

The key thing that makes Beacon work now as a City is that there’s a lot of volunteer work that gets done by the unsung hero types that don’t get any publicity. And once things started going here, it was these unsung heroes that really started helping to make it all work. Take the flowers below the Welcome to Beacon signs. That’s the garden club. They pay for the flowers. They plant the flowers. They take care of the flowers throughout the year. And to this day, they’re the ones that do all the hanging baskets on Main Street and plant all the flowers around the trees in the planters. There’s a bunch of people just doing their own thing and it’s all part of the big picture. Half the time people don’t realize how many little factors come together to create the big picture. What’s also interesting now is that there’s a big interest in main streets. It’s mainly among young working people who enjoy the dynamics of main street and the activity associated with it. But it’s a coast-to-coast thing where even the planned cities that they’re building are being built with storefront shops and apartments upstairs. So, I think it’s great to see this whole idea coming back.