In the Know: Spring 2021 Real Estate Edition

SPRING 2021

THE REAL ESTATE ISSUE

In the

KNOW

A Quarterly Publication for Member Investors of the Sullivan County Partnership For Economic Development

“Migrating back to Main Street”

— The Changing Landscape of Sullivan County Real Estate PLUS: New Opportunities for Shovel Ready Sites Straight Talk from the Sullivan County Board of Realtors

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SPRING 2021

“Work Where You’ve Always Wanted to Live.”

“Country Life with Metropolitan Access.”

“For Business, for Life.”

“Bucolic Yet Sophisticated.”

Here at the Sullivan County Partnership for Economic Development, that’s how we’ve long described the Sullivan Catskills to prospective businesses. Aided by the unforeseen pandemic— that messaging is more relevant than ever and is boosting real estate activity Marc Baez Chief Executive Officer

T

that no one could have predicted.

he pandemic forced large

The New York State Association of

segments of the economy

Realtors reported fiscal year 2020

into a work from home model

increases in new listings (34%); sales

which in turn led employers and

closings (28% overall and 45% in the

workers to reconsider the work/

last quarter); median sale price (36%

life balance. Now employees and

and 70% over the last five years).

in some cases entire businesses

Now, consider that homes for sale

are trading crowded urban streets

is down, simply because supply is

for hiking trails, water features and

down 49%, you begin to understand

open space, purchasing homes or

how hot the real estate market is.

land that was readily available. Even

Here in the Sullivan Catskills, high

existing second-home owners are

demand is creating tremendous

turning their vacation dwellings into

opportunities for home builders to

primary residences. Those who have

either revive previously approved

made the move are realizing that

projects or embark on new devel-

living here allows them the best of

opments entirely. This issue’s cover

both worlds— open space, quiet

story profiles the Hurleyville Main

and solitude yet close enough to

Street Mews project as an example.

maintain their business connections to Manhattan and the tri-state area.

continued...

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“Work Where You’ve Always Wanted to Live” Commercial and Industrial interest is also on the

is a hopeful sign that we can attract new tax ratables

rise. A growing E-Commerce economy coupled with

and jobs in this sector. Companies want to locate

an expectation of seamless purchasing, and short

where their employees want to live and where they can

delivery times at the hands of technology advances

experience less disruption with supply chain, transpor-

is creating relocation interest for logistics, light

tation and other operational priorities.

industry and other wholesale consumer production and distribution companies.

Throughout this issue of In the Know, we take a

Developers who have historically desired locations on

benefits and challenges that come with residential,

or near the I-84/I-87 interchange are now turning their

industrial, and mixed-use real estate growth. This

gaze toward the Sullivan Catskills seeking our available

issue’s contributors include local and regional leaders

and lower cost commercial property as an attractive

with expertise in all aspects of housing and real estate

alternative to the saturated lower Hudson Valley and

development including The Sullivan County Board

growing anti-development sentiment.

of Realtors, RBT accounting, Jacobowitz and Gubits,

Efforts to widen NYS Route 17 and ongoing steps toward the I-86 designation have also helped. In

deeper dive into the real estate market including the

Hudson Valley Pattern for Progress and more.

the past three months— typically slow this time of

How we work, live, play, and

year— we led tours to more industrial developers and

prioritize the future is changing,

construction companies than we have in two years. It

and our messaging: “Work where you have always wanted to live,” is here to stay.

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Mixed-Used Real Estate Project Emerges in a Vibrant Downtown

SIDING GOING UP AT MAIN STREET MEWS 6

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LA SALUMINA

C

PICKLED OWL

harles Brodsky grew up in Sullivan County, so

He called around and spoke with the building’s

he knows that, traditionally, from the outside

architect and engineer. Eventually he met the owner

looking in, the county had a negative image. He

and discovered that they both had similar views on the

recalls from an early age hearing the “Casino Means

project’s look and marketing. “He was this awesome

Jobs” slogan. When casinos didn’t come, people gave up

guy who has a child at the Center for Discovery, a Hur-

on Sullivan County’s promise but not Charles.

leyville-based non-profit organization that’s changing the

He got involved with the Sullivan Regency, a luxury condominium property in Monticello that was coming out of bankruptcy in 2006-2007. He and his team put together a plan to finish the building— which was about 50% complete— doing it with deluxe finishes to attract high-end buyers. The casino eventually did come, followed by the water park and other projects, bringing business with it. “The hospital is always bringing in new

way autism and other complex medical conditions are treated, through residential, medical, clinical, vocational, and special education programs. During our conversation I learned he just really wanted to do something nice for the community because he also had an affinity for Hurleyville,” says Brodsky. “We hit it off. So now I’m the owner’s rep, kind of the middleman between him, the engineers, the architects, and the builder.”

doctors and traveling nurses who want a nice place to

This “cool building” was eventually dubbed Main

stay. We got lucky, we made it appealing, and they came.”

Street Mews and is the latest addition to a revitalized downtown Hurleyville. Designed by Cirillo Architects in Middletown, NY, it is a mixed-used concept building

Fast forward 14 years later. Brodsky was driving through the hamlet of Hurleyville.

“I saw this cool building going up.” This serial entrepreneur thought to himself,

that boasts four retail storefronts on the first floor, with eight two-bedroom, one-bath apartments above.

Built by Mark Anunziato of Liam Construction out of Sussex County, NJ, the marketing materials boast of “luxury apartment living in a vibrant community.” Slated

“Hurleyville is my idea of what a cool,

to be completed and available to rent in April 2021, the

small-town should look like, and I want

light-filled apartments feature high-end finishes: wood

to help make sure that this building gets done right.”

floors, stainless steel appliances, 10 ft. ceilings, 24-hour security, parking, and an elevator. continued...

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Mixed Use Project Emerges in a Vibrant Downtown Modern mixed-use development is billed as a way to

adventurous art in the Catskills that contributes to an

rejuvenate communities by creating spaces where a

inclusive and environmentally resilient region.

cross section of people gather to live, work, play and shop. Anchored and conceptualized by the Center for Discovery, downtown Hurleyville is an example of a small town with a larger vision. Its fully integrated Main Street continues to thrive, impressing residents and visitors alike, by fostering social experiences, inclusiveness and building a strong social and economic foundation with its shops, restaurants, and culture.

HPAC screens blockbusters and art house films in their world-class 130-seat cinema, hosts innovative performance events in their elegant ballroom and offers popular dance and yoga classes just 10 minutes from Monticello and 10 minutes from Liberty. The Centre recently completed an addition and will be opening the Tango Cafe, an adjoining restaurant/bar/cafe led by world-famous chef and restaurateur Tom Valenti.

New residents and

Eleanor Friedman, who,

businesses will be surrounded by their

“All of us at The Hurleyville Performing

forward-thinking

Arts Centre look forward to new

neighbors, The Hurleyville Performing Arts Center, The Hurleyville General Store, THINC technology hub, La Salumina, The Pickled Owl, Fiber on Main, to name a few.

Located across the street, The Hurleyville Performing Arts Centre

neighbors adding to the diversity and inclusiveness of our hamlet. We do not doubt that residents of the Main Street Mews will feel a part of the community while enjoying the wide variety of

small salumeria in the Italo-Tuscan style on Main Street, sums up most of the downtown business community’s feeling. “We tionship with everybody.

delights of Main Street.”

We prefer to complement

– Janet Carrus, Hurleyville resident and founder of HPAC

HURLEYVILLE PERFORMING ARTS CENTRE Sullivan County Par tnership for Economic Development In the Know

Gianpiero, operates a

have this reciprocal rela-

programs at HPAC and the culinary

(HPAC) is a haven for

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along with her husband

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SPRING 2021

rather than compete with each other. We’re

Mixed Use Project Emerges in a Vibrant Downtown “There are a lot of places around the world where people can invest, and like I always say, when you’re on the outside looking in— Sullivan County is not at the top of your list, but it should be. These last six months, we’ve seen a completely different crowd of people coming in and appreciating what we’ve got going on here; It’s special.” Mrs. Lombardi agrees. “This town is just incredible; the people are so welcoming. Especially from the perspective of having a disabled child, the fact that you have the Hurleyville Performing Arts Center, which is so inclusive, you have the Sullivan O&W rail trail, which HURLEYVILLE GENERAL STORE

is open to anybody with any mobility issue. It’s almost a spiritual setting for me, and I’m not a religious person;

excited to see what goes into those retail spaces at Mews and for them to add a larger, more diversified audience for the downtown.” Adding enthusiastically,

there’s just so much beauty in this town. Between the natural setting and the people— it is incredible.”

“A specialty wine shop would be a great addition!”

Brodsky hasn’t ruled out getting involved with other

Brodsky has his views on what type of stores would be

what we’re doing here, so if somebody’s looking to build

a good fit for his four approximately 1000 square foot retail spaces. “We’d like to see specialty, niche businesses-stores that are going to support the residential clientele. We’ve talked with some people about a specialty wine store, a café; outdoor products would be perfect because you’ve got the Sullivan O&W Rail Trail

projects. “I want to continue to support the growth of something similar and get me involved, I would be open to it. But you can’t fake being excited about it— I need to be excited to create the marketing. All of these beautiful things— the Mews, the Sullivan Regency— are a reflection of me, a reflection of Sullivan County’s future and what a cool small town looks like.” For him, being

right there.”

on the inside looking out, Sullivan County is looking

Denise Lombardi, the proprietor of the Hurleyville

changes to position it for future success.

just fine, and he’s proudly playing his part in all of the

General Store, agrees. “I honestly don’t see any downside to a project like this. It’s a positive development for this whole community. I would love

To schedule a tour of Hurleyville’s Premier Residence, call 914-490-3433 or visit 234mainstreetmews.com.

to see a wine shop, a bagel shop, maybe a clothing boutique, and a spa. Maybe even a shoe store would be great but definitely a wine shop.”

Brodsky says that they’re about a month away from showing the retail space in person but firmly believes they will fully rent the apartments even before completion. He’s optimistic that once the right people and businesses go in there and are successful, other developers might take their cue and replicate a mixed-use project in other Sullivan County towns.

“I’ve learned a lot from being in real estate in Sullivan County over the years, and I’ve always loved Hurleyville.

In my opinion, it’s a model of what a cool, small-town should be: very well kept, some excellent restaurants, bars, and shops – just a charming place.”

– Charles Brodsky

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So You’ve Decided to Build Your New Home… What Next?

by Bryan Hitt, President and CEO Hudson Valley Home Source

W

ith With existing real estate inventory being

costs up front will help move you to the next step,

low due to a strong housing market, many

which is finding a building lot.

people have made the decision to build a

new home rather than continue the exhausting search for the “perfect” home on the market. For many, this is a courageous decision as there are many unknowns

Finding the perfect setting for your new home means finding the ideal location of the lot, as well as

when moving forward with a new home build.

determining how the home will “fit” with the lot. The

The first question we are generally asked is “where do

lot size, location, and lot condition. To help determine

we start?” We advise our clients to first determine their

the budget for lot acquisition, we recommend

overall budget; consisting of the cost to acquire land and

subtracting the estimated construction costs from

build the home. Once an overall budget is determined, it

the overall budget. The remainder of the budget is

is usually a good idea to have a preliminary conversation

generally the budget for the building lot. This of course

with a lender to ensure that the desired budget works

can vary, so construction and lot costs may need to be

with financing programs they offer.

adjusted up or down to stay within budget. Occasional-

With a preliminary budget established, the next step is to focus on the type of home that you’re interested

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Finding a building lot can be a challenging task.

cost of the lot is a variable that can change based on

ly, builders will have an inventory of lots to offer, which can make the process easier.

in building. Determine what style home best fits your

Once the preliminary budget is established,

lifestyle and needs, then meet with a reputable builder

approximate construction costs determined, and

to discuss the home and have a preliminary cost to

building lot selected, its then time to move forward

construct the home provided to you. This should be

with either a full design/build firm that can complete

a budgetary number at this point as a final home

both the design and construction of the home for

design, as well as items pertaining to the lot need

you, or hire an architect to complete your plans. The

to be determined before a final cost to build can be

builder can then finalize associated costs and move

determined. Determining approximate construction

forward with the construction and completion of the

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SPRING 2021

Since 2002, Hudson Valley Home Source has helped over 700 clients through this process and we are constantly fine tuning our policies and procedures to meet the needs of our clients. For more information on Hudson Valley Home Source and how we can help you build your dream home, please visit our website at www.HVHomeSource.com or call us at 845-294-5663.

home. We’ve found that most clients choose a full-service design/build firm to act as a “one stop shop” to handle the process from start to finish.

At Hudson Valley Home Source, we offer many services to help streamline this process.

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4 Reasons Real Estate Professionals Should Care about the Cares Act

by JONATHAN ROUIS, CPA

A

fter a year marked by loss, business closures,

improvements could

and financial hardship, one industry stood out

include installation/

in contrast. 2020 was a record-breaking year

replacement of drywall,

RBT CPAS, LLPRBT CPAS, LLP 11 RACQUET ROAD NEWBURGH, NY 12550 845-567-9000

for the housing market. According to Zillow, 5.64 million

ceilings, interior

U.S. homes were sold in 2020 as Americans flocked from

doors, fire protection,

major cities. Home sales represent a 5.6% increase

mechanical, electrical,

from 2019, and housing prices in all the major markets

or plumbing updates. Any enlargement of the building,

continue to rise. Home values are growing at their

elevator/escalator, or internal structural framework

fastest pace in a generation according to economists,

doesn’t qualify. Notably, the CARES act assigns a 15-year

showing no signs of slowing down in 2021. But even with

cost recovery period to QIP.

this industry bright spot in an overwhelmingly troubling economy, real estate professionals should still dig into the CARES Act to take advantage of immediate and significant tax refunds.

Say goodbye to loss limitations While the 2017 Tax Cuts and Jobs Act (TCJA) placed a limit on the number of tax deductions from business losses that non-corporate taxpayers could make, the CARES

Five-year NOL carryback

Act removes those limitations for 2018 - 2020. This helps

Still, while many thrived, the real estate industry was

non-corporate taxpayers by allowing those who were

halted for months, leaving some businesses with 2020

subject to excess business loss limitations on already filed

net operating losses (NOLs). Previously, NOL deductions

2018 and 2019 tax returns to file amended tax returns.

were limited to 80% of a business’s taxable income and couldn’t be carried back to prior years. Thanks to the CARES Act, 2018, 2019, and 2020 NOLs may be carried back for five years preceding the NOL. If you’re not familiar with this process, here’s the gist: loss carryback provides a refundable tax offset which could reduce your tax payable to zero for the earlier income year.

While the 80% NOL deduction limit is reinstated for 2021, it’s suspended for 2020, so businesses can use NOLs to offset 100% of their 2020 taxable income.

QIP depreciation update Qualified Improvement Property (QIP) is now eligible for immediate depreciation. The change applies to the current 2020 tax year and is retroactive to 2018 and 2019. Taxpayers must file amended returns in the prior years to recover overpaid taxes. Some qualifying 12

JONATHAN ROUIS, CPA PARTNER

Use up those AMT credits Corporations with unclaimed alternative minimum tax (AMT) credits may now claim them immediately.

Previously, the TCJA allowed corporations with previous AMT liability to claim credits but required the credits to be spaced out over several years – now the wait is over.

But keep in mind, to finalize available AMT credits for a refund, you may need to file carrybacks first.

Whether 2020 proved to be devastating to navigate, or surprisingly lucrative, it’s always wise to invest time researching ways to save for the future. As always, we highly encourage you to consult with your tax advisors for a more comprehensive analysis to understand how the CARES Act can impact your bottom line this tax season.

Sources: AccountingWeb, Realtymogul, Norada

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SPRING 2021

Fred Williams, Associate Broker, is honored for 20 years of service. Pictured with Kerry Bigness, left, the company's Top Producer for 2020, and Carol Malek, Principal Broker.

Serving Sullivan County and the Surrounding Area Since 1997 with Proven Success.

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The Case for Shovel Ready

By John Lavelle / Licensed Commercial Broker with Team RJ at Rand Commercial

E

xisting industrial space, as well as developable

Supply Chain logistics in a post-Covid world may

industrial sites, are in critical short supply here

actually increase that demand. Companies and

in the Hudson Valley. According to the Overview

organizations are now focused on making sure that

of the Commercial Real Estate Market in Orange

critical inventories can be reliably re-supplied. This

County, recently released by Mansfield Commercial

could result in some companies seeking smaller,

Real Estate, the vacancy rate for prime industrial space

regional warehouses that are closer to facilities, rather

is a historic low of 0.8%. The lack of available sites

than larger, single mega-warehouses.

in counties to the south, combined with continued increased demand, should create new opportunities for sites in Sullivan County.

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In addition, E-Commerce continues to grow. People regularly expect to receive items ordered online within

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SPRING 2021

just a day or two. Many companies that were traditionally brick and mortar are now scrambling to find logistics warehouses to stay relevant in an online world.

That’s where Shovel Ready Sites come in. The definition of “Shovel Ready” can vary depending on location.

In general, the term is used to convey ready-to-build status, or as near to that as possible.

Shovel Ready sites will have had all their baseline engineering completed. Studies commonly undertaken to confirm the suitability of a property include: • Survey • Topographic study • Wetland delineation • Environmental review • Confirmation of utilities

The Glen Wild Industrial Park is a good example of a property that has gone through the review process. The site previously received a generic approval under SEQR and is capable of hosting upwards of 200,000 square feet of industrial space, either in a single large structure or multiple smaller buildings.

UNFI’s 500,000 square feet, McKesson Pharmaceuticals’ 340,000 square feet and the Citiva Medical Marijuana facility at the Warwick Tech Park are good examples of shovel ready sites that succeeded in attracting companies that created increased employment and large rateables. Closer to home, when Metalized Carbon was seeking a site for the manufacturing of critical aircraft parts, they chose the Glen Wild Industrial Park

Many states now have shovel ready certification programs. In order to become “certified” the sites also need to go through the review process and obtain their approval to build. Here in NY that would be completing SEQR and obtaining municipal site plan approval.

This has the benefit of increasing speed to market for these companies, and also reduces risk by eliminating unknowns. Increasingly, companies and site selectors are using shovel ready designations as a reason to

specifically because it was shovel ready, and the fastest possible site available to them.

Property owners who want to take advantage of these trends would be well served to invest in engineering, work cooperatively with their host municipalities, and put those properties into the best possible position to take advantage of the opportunities that come. Now is the time to invest in Shovel Ready sites in Sullivan County.

choose one property over another.

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SPRING 2021

Hello Thursday!

Networking is back… SAFELY

Back in July, the Partnership

SULLIVAN COUNTY PARTNERSHIP BOARD OF DIRECTORS Randy Resnick - Chair

Gerald Skoda

Karen Fisher - Vice Chair

Jonathon Schiller

Michael Zalkin - Treasurer

Kelsey Hornicek

James Bates - Secretary

Steven Vegliante

Carlito Holt

Matt Dorcas

Kevin McLaren

Charlotte Van Horn

Larry Wolinsky

George Kinne

John Brust

Gary Schmidt

Gary Sliver

Fred Stabbert

was the first local organization to dip our toes in the water of having in-person events after the NY pause.

We DELIVERED! We had three successful and safe networking events limited to 40 attendees. That trend will continue in 2021 with three events already

Did You Miss Advertising in this Issue or would Like to Submit Editorial Content?

on the schedule for late Spring.

Not to worry, our next issue is scheduled for

Watch your email for our “Hello Thursday!”

your business can be included!

announcements and see upcoming events in this issue for further details. If you are interested in sponsoring one of these events, please contact

publication in June. Contact us to see how

Please contact Jen Cassaro, Director of Membership at cassaro.jen@scpartnership.com

Jen Cassaro at cassaro.jen@scpartnership.com

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Sullivan County Partnership Grows GOLD INVESTOR

EXECUTIVE INVESTOR Cuddy & Feder, LLP

The Eldred Preserve

At Cuddy & Feder, ingenuity, thought-

OPENING SPRING 2021.

fulness and insight have been the

Being developed by local

hallmarks of their law firm for more

resident and entrepreneur Dan Silna and his wife, Joan, in the town of Highland, NY, The Eldred Preserve is a wholly unique hospitality offering in the Sullivan County Catskills that, upon completion, will weave together the best of three Sullivan County legacy brands - The Eldred Preserve, The Bradstan Country Hotel, and The Old Homestead Restaurant. The resort property will include an event space, luxury accommodations, and a classic steakhouse offering a unique farm-to-table experience.

TheEldredPreserve.com • 845-557-8316

than 45 years. Their New York and Connecticut attorneys help local, regional, national, and multi-national clients alike identify and implement nuanced solutions to complex legal challenges in the following key practice areas: Corporate Law; Energy & Environmental Law; Finance; Land Use, Zoning & Development; Litigation; Non-Profit Organizations; Real Estate Law; Telecommunications; Trusts, Estates & Elder Law. CuddyFeder.com • 845-896-2229

INVESTOR Coldwell Banker

Riggs Plumbing

Timberland Properties

& Heating LLC

Coldwell Banker

Riggs Plumbing and

Timberland Properties serves buyers and sellers

Heating has been in business since 1980. The original

throughout the Catskill region with six office locations

company specialized in general plumbing and heating,

and the most up to date technology.

as well as the installation of water meters and backflow

TimberlandProperties.com • 845-807-2630

prevention devices. In 2017 the owners retired, and Carmine and Erika Ribaudo purchased the company. At

Atlas Security Services Inc.

that time, the business expanded to include heating,

Atlas Security Services Inc

gut renovations and restorations, and new construction

is a mid-sized security and

plumbing and custom builds. In July of 2019, the

investigative services provider.

Ribaudos moved to Sullivan County, relocating the

Their experiences in corporate

company to Monticello, NY.

security include securing facilities that vary from

Facebook.com/Riggs-Plumbing-Heating • 845-513-6400

corporate suites and hospitals to large warehouses and industrial complexes. On the investigative side, they have solved multi-state theft rings and been involved in numerous newsworthy legal cases.

AtlasSecurityServices.us • 845-742-6987 20

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INVESTOR Wildacres Realty

Civix

Wildacres Realty specializes in resort

A professional services and

hotel properties, camps, and large

technology firm headquartered in New Orleans,

tracts of land for development in the

Louisiana. With nearly 400 employees, Civix has the

Catskill area of New York State, within 1 1/2-to-5-hour

capacity to provide a full range of administrative,

distance from New York City. With exclusive listings rep-

programmatic, and IT services related to the design

resenting some of the finest investment opportunities in

and implementation of public sector projects. Their

the region, they have the experience and professionalism

Community Planning and Resilience team includes grant

that comes with years of successful deal-making.

managers, community planners, and IT professionals

WildacresRealty.com • 845-887-4070

with experience leading and supporting disaster recovery and resilience efforts across the country and bringing

Steingart Associates Inc.

equitable, catalytic change to communities through

Since the early 1900’s

impactful planning. GoCivix.com • 504-304-0792 x 2044

Steingart Printing has made the Hudson Valley Region of NY their home. Steingart Printing was founded by

Silverman Mechanical Corp

Max Schwartz, Great Grandfather of current owners

Founded in 1972 by Dave

and siblings, Ira and Nathan Steingart and Cindy

Silverman has grown from one truck to ten trucks;

Perlmutter. Today, Steingart Printing is the region’s

specializing in service work to handle any plumbing and

leader in high quality design and production. A

heating needs of their loyal customer base. They offer all

top-quality creative team using state-of-the-art

aspects of plumbing, repair and replacement for heating

equipment and presses offering unparalleled quality,

and cooling systems, well systems, as well as excavation

service, value, and turnaround.

for water and sewer lines replacement. Steve Silverman

SteingartPrinting.com • 845-434-4321

took over in 1987, serving many of the same customers that they had from decades ago. 845-583-6595

MDS HVAC-R Inc.

Facebook.com/SilvermanMechanicalCorporation

Founded in 2006 by Dominick DiViesti, President/Owner, MDS HVAC-R Inc. is

Malek Properties

a mid-size company with 80 employees specializing in

A full-service boutique

heating and air conditioning service. Based in Walden,

real estate company

NY they are experts in all phases of HVAC and plumbing.

with seasoned professionals well-versed on current

MDS HVAC-R Inc. specializes in commercial, industrial,

market trends. Proudly serving the Sullivan County

and new construction work with vast experience working

Catskills and surrounding area since 1997, this group

on large commercial projects.

of community-minded real estate professionals is

845-713-4598 • info@mdshvacr.com

strongly committed to the clients’ needs; offering attractive marketing strategies to assist in getting them to a successful close. Serving sellers and buyers in residential and commercial transactions, Malek Properties has always offered unsurpassed representation. They are members of several Multiple Listing Services and Realtor Boards.

MalekProperties.com • 845-583-6333

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Housing the Hudson Valley

By John C. Cappello, Partner, Jacobowitz and Gubits, LLP (www.jacobowitz.com) and Joe Czajka, Senior Vice President for Research, Development, and Community Planning, Hudson Valley Pattern for Progress (www.pattern-for-progress.com)

O

ver the last several years the Hudson Valley

The demand for new residential development is

has experienced significant commercial

increasing across the region. While this is good news for

development and growth in the form of the

sellers, contractors, and tradespeople among others, the

Resorts World Catskills Casino, Legoland, the Kartrite

influx of new residents will also bring increased support

Resort and Indoor Water Park, Yo1 Health Resort,

for existing businesses and new ideas and energy to our

other resorts and tourism destinations, many large

community as we emerge from the pandemic.

warehousing and distribution centers, light manufacturing, and some retail. Unfortunately, the local issues of housing have been left on the back burner.

However, the times they are a-changing. The pandemic has caused many residents to leave New York City and other large cities, or have a second rural or suburban housing option providing more space and safety resulting in a migration to the Hudson Valley.

However, as we plan to reap the benefits of this potential real estate boom it is essential that we appropriately plan to accommodate growth.

It is vital that our region maximize all the tools available in our efforts to provide a wide range of housing opportunities. It is critical for the long-term sustainability of our communities, both the residents and the businesses in this fragile economy. The new growth must also mitigate and minimize potential adverse impacts to the

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beautiful yet often environmentally sensitive Hudson

developments can provide diverse housing opportunities

Valley region. It is neither healthy nor sustainable, from

on smaller footprints with much less land disturbance

either an economic or an environmental perspective, for

than traditional large suburban single-family housing. In

residential development to occur in such a way that our

addition, by incorporating energy saving building design

essential workforce cannot live in the communities that

and alternative energy features, any adverse environ-

they serve.

mental impact can be further minimized.

We have a great opportunity in the coming year to come

A cursory review of the real estate market and rental opportunities in a majority of our region’s municipalities shows very few affordable options to many people who are essential to our community.

together as a community to start to address the need to provide for reasonable and sustainable housing for all those wishing to live in our region.

Over the course of 2021 I will be gathering information regarding many of these innovative options and the educational information available and posting on our firm website under the heading Resources/Housing the

Fortunately, there are several organizations, planning groups, and developers focusing on developing new and innovative options to help meet our housing needs.

Hudson Valley. Pattern will also be holding a monthly webinar series specifically addressing housing and the real estate market.

Locally, the Hudson Valley Pattern for Progress Center for Housing Solutions provides a wealth of information on housing trends in the region as well as providing expert analysis and discussion on solutions to the problem of lack of adequate area housing opportunities.

There is a nationwide movement known as YIMBY (Yes In My Backyard) that started in the San Francisco Bay area, as discussed in a great book entitled “Golden Gates: Fighting for Housing in America” by Conor Dougherty.

This national effort provides educational material and support for inclusive zoning that incudes multi-family housing. Just type YIMBY into any search engine and you will find a wealth of information.

One exciting and innovative project was completed in Kansas City in 2019 by The Veterans Community Project where 49 “tiny houses” ranging in size from 240-320 sq. ft. were constructed on a five-acre plot to provide decent transitional housing for homeless veterans (see www.veteranscommunityproject.org for more info).

This concept of tiny or smaller starter homes and multi-family dwellings can and should be replicated in many of our Hudson Valley communities. These

VETERANS COMMUNITY PROJECT’S VILLAGE CREDIT: VETERAN’S COMMUNITY PROJECT

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Mold – Not just Black & White

by Brittany Johnson Marketing and Human Resources Manager, ServPro of Orange, Sullivan and S. Ulster Counties

I

n a world where we still feel overwhelmed and

Who is involved?

consumed by a pandemic, nothing feels “normal”,

• Licensed New York State Mold Assessor

and every day we worry about the potential harm

• Licensed New York State Mold

to our bodies, SERVPRO® is still Here to Help™. One of the most common calls we receive is about mold.

Remediating mold can be a daunting task, especially to a new or first-time homeowner, therefore, we want to help everyone be as informed as possible. You have all seen the scary 20/20 episodes where homeowners are told they have mold, given a hefty invoice to remediate the mold, and then given the clean bill of health for their home when the job is done, all from the same contractor!

When dealing with mold in your home or business you need to ensure that there is not a conflict of interest and that the job has the necessary checks and balances.

Remediation Contractor Why do I need both?

• First, you’ll need an assessment report from the Licensed NYS Mold Assessor. This will provide information about the mold present, and the recommendations to properly remediate the mold.

• The Licensed NYS Mold Remediation Contractor will then put together an estimate and remediate the mold.

• Once the job is complete, the Licensed Assessor returns, does final testing & a visual assessment to ensure the mold has been remediated properly.

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SPRING 2021

What is the difference between a home inspector & a

Can’t I just spray the mold with bleach?

mold assessor?

• While bleach can kill a number of bacteria & viruses

• A home inspector will point out potential hazards

and could likely kill some mold spores, the action of

an issue that may need to be repaired in your home

spraying an area of visible mold can disperse the

or future home. While their reports will point out

mold spores into the air before the bleach even

areas that could be mold, they aren’t actually testing

reaches it.

or producing a remediation plan for the work to be completed.

• Bleach residue can also die out on the surface and

• A Licensed NYS Mold Assessor will come to your

mold to grow.

home or property and conduct testing. This could be in the form of air sample or actual tape lifted samples of visible mold. Their report, by law, also includes a remediation plan for a Licensed Mold Remediation Contractor to follow.

could potentially become a food source for future

• Mold remediation contractors have EPA registered products to kill mold and industry standard cleaning protocols to eliminate the presence of mold spores in a contained work area.

Of course, it is never just black and white, and always a list of “what ifs?”. SERVPRO® is Here to Help™ and answer any questions you may have throughout the process.

Transportation Engineering Civil Engineering Surveying Construction Inspection

info@cmellp.com | www.cmellp.com

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Offices in Albany and Westchester NY

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The State of Real Estate Now:

Straight Talk from The Sullivan County Board of Realtors® Has there ever been a busier time in Sullivan County real estate?

Jonathan: “Not in my 15 years as a broker- but I think my wife Patti, who has been a realtor for over 30 years, recalls a time during post 9/11 where there was an exodus from the city not quite like this but pretty close. The market now is unprecedented.

We have had enormous sales, enormous inventory come on the market and quick sales. What used to take 2 maybe 3 months Jonathan Sunshine The Sunshine Group Real Estate, Corp.

President-Sullivan County Board of Realtors 26

Mary Bakalis Board of Realtors Association Executive

to close a deal now is taking a month. A lot of those sales are cash - people moving out of the city. Covid made it very

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interesting in that companies closed their offices, their employees started working from home via Zoom, and these companies now realize that they really don’t need the added expense of having an office space. So, folks are buying up here, working from home and just going back to the city once or twice a month instead of paying thousands of dollars in rent in the city. A lot of these deals are cash, and because of that, you don’t have to go through the mortgage process- you don’t even have to go through the appraisal process but inspections continue. Covid created not only a great market for us but some challenges as well that we had to work through.

Since Realtors® were not considered an essential service, we could not show properties in person. People were making offers on properties sight unseen with an inspection contingency in the contract. They would have their inspection, and in some cases an issue would come up that could not be resolved through negotiation so the buyer would back out of the deal and the property would go back on the market.”

Mary Bakalis: “I do remember in 2005 when I started as an office manager that it was busy; because we were still on the tail end of the 9/11 sales. But compared

New York State Statistics • On average, sellers received, 98.4% of their original list price at sale, a year-over-year improvement of 1.1%

to now- now I almost feel like buyers are in a frenzy.

The minute something goes on the market, it’s not only getting accepted offers, some of them are getting multiple offers.”

Jonathan: “What we’re seeing now, which I don’t believe we’ve ever seen, are bidding wars - almost every deal is a bidding war. You can have several people bidding on a house and sometimes it goes well over asking price.”

Mary: “In the past, when that type of situation occurred it was because the home was underpriced, but this is not

• The overall median sales price in 2020 increased 11.6% to $310,000 for the year when compared to last year.

• Pending sales increased 8.5% finishing 2020 at 148,280. Closed sales were down 0.9% to end the year at 129,661.

Source: New York State Association of RELATORS. (2020).

Annual Report on the New York Market for Residential Real Estate Activity in the State of New York. NY: Author

that situation— it’s the exact opposite.”

Jonathan: “What people are looking for is privacy, they don’t want to be close to the road or see their neighbor.

One of the first questions we’re asked at a showing is “Is there high-speed internet”? There are areas of our county that are going to be difficult to bring high speed

internet to and I know the Partnership and the county are working on that. It really is so important as the western end of the county is a big sales area for us and sometimes that becomes a deal breaker.” continued...

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Straight Talk from The Sullivan County Board of Realtors® What types of inquiries are coming across your desk and email on a daily basis? Where are they finding you?

What are they asking for?

Jonathan: “Buyers are asking for waterfront properties or any water feature, anything to do with peace and quiet, from contemporary to farmhouse with a country feel and if they can Air BNB is a plus. We do get some inquiries about buying something and fixing it and flipping it. There’s quite a few houses out there that need renovations and are priced reasonably well that contractors are seeing an opportunity; they buy them, fix them and sell them.”

Why would I list with a Sullivan County realtor instead of just putting it up on my own?

Jonathan: “FSBO: For Sale by Owner is way more difficult to market. You don’t reach the people that you should be reaching. All of our realtors belong to OneKey, an MLS, which covers Sullivan, Orange, Putnam, Westchester, Rockland, Bronx, Manhattan, Brooklyn, Queens, Nassau and Suffolk counties. It is 45,000 agents strong. When you list with a with a Realtor® you’re reaching many thousands of possible buyers. Some reasons to use a Realtor® whether you are buying or selling are:

Sullivan County Statistics • Total Closed Sales: 1,266 - Change from 2019 +25.1% - Change from 2016 +28.7% • New Listing: 1,831 • Inventory of Homes for Sale: 945

2. We pre-qualify your buyer.

3. We require a Covid-19 disclosure and questionnaire (for everyone’s protection).

4. We orchestrate everything from scheduling showings, inspections, and appraisals to recommending attorneys, keeping the transaction worry free and comfortable for everyone. We are the gate keeper of the castle.”

• Months Supply of Inventory: 7.7

Mary: “Because our members know our market in this

• Percentage of List Price Received: 95.4%

septic and things that people outside of Sullivan County

• 2020 Median House Price: $195,000 - Change from 2019: +36.8% - Change from 2016: +69.6% Source: New York State Association of RELATORS. (2020).

Annual Report on the New York Market for Residential Real Estate Activity in the State of New York. NY: Author

28

1. We are bound by a “Code of Ethics”.

area and know certain things about the drainage and don’t necessarily know. We feel it’s very important for them to use somebody who has the knowledge of what’s going on right here in the county right now.”

Jonathan: “Even the Sullivan County Board of Realtors® members who don’t live in this county but sell in this

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SPRING 2021

Straight Talk from The Sullivan County Board of Realtors® county know this area. They know it significantly better

Mary: “Banks. It’s good to have bankers who know the

than someone from out of the area. They are aware of

area and know the market because when outside banks

the particular challenges that Sullivan County presents.”

come in, they’re very difficult to deal with.”

Jonathan: “Jeff Bank is a good bank; they’ll finance things

Do they ask about what there is to do in the area?

that other banks won’t because Jeff Bank is a ‘Hometown

Jonathan: “A big draw of course is Bethel Woods, The

Bank’. They’re local and they know Sullivan County and

Forestburgh Playhouse, the water park and the casino.

our needs.”

The big draw is the western end of the county with the Delaware River, quaint small towns, eateries, farmers markets, shops and breweries and let’s not forget nature: lots of trails to hike, rivers to tube or canoe and streams and lakes to fish.”

What should we know about the Board of Realtors and the accessibility of real estate in Sullivan County – right now?

Mary: “I think that people still like the fact that when you call the office, a human answers the phone, which is very

As far as inventory…do we have enough to meet the demands of the current market?

Mary: “We did a year ago. Residential inventory this time last year was about 2,000 listings and we’re down to about 450- and the good ones are picked through right away. So you’re stuck with whatever you’re stuck with

Sullivan County.

People like dealing with the smaller entity as opposed to a giant company— I think that that’s part of our charm.”

Jonathan: “I absolutely believe that. From the agent

now and buyers have to settle if they want to buy.”

side of that, I would want everyone to know that our

Jonathan: “Absolutely not. It used to be I’d open the hot

introducing buyers to the area and encouraging them

sheet every morning and there would be 20 or 30 new listings and now there’s maybe four or five, it’s tough.”

members (SCBR) are the frontline people. We’re the ones to live here; telling them about the area, recommending places of interest, things to do and businesses to consider visiting. We can refer inspectors, attorneys, contractors, tradespeople etc. all of whom we have

As a trickle-down effect of this hot market, what do you

had relationships with and who we trust.. We are local,

see as the boon to Sullivan County?

professional and this is the area we know. Sullivan

Jonathan: “Everybody in any business related to the

County is a nature lovers’ wonderland; just give us a call,

housing industry is busy; electricians, plumbers, painters,

we’re happy to share it with you.”

appraisers, inspectors, contractors, etc.”

Site/Civil Traffic & Transportation Services Public, Private & Municipal Projects of All Sizes Commercial and Residential 914-592-4040 • www.pderesults.com Sullivan County Par tnership for Economic Development

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Sullivan County Par tnership for Economic Development In the Know

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SPRING 2021

Because of Jeff Bank’s long history as a community bank, we have an understanding of the local economy unmatched by newer or larger banks. With the help of our seasoned commercial bankers, such as Tanya Hahn, Executive Vice President and Chief Lending Officer, your business will receive the reliable and personalized financial services you need.

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To start receiving the financial support your business deserves, call (845) 482-4000 and make an appointment with one of our banking professionals today.

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Helping local businesses for over 100 years!

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Sullivan County Par tnership for Economic Development

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Still Banking Strong!

(845) 482-4000 www.jeffbank.com www.facebook.com/jeffersonvillebank

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QA

Board Member Spotlight

Kevin McLaren President, Catskill Hudson Bank Hometown: Ulster Park, NY Education: SUNY Cortland/Economics, Masters in Finance from Marist College Hobby: Music Fun Fact: Accomplished Musician/attended Rock Camp and got to perform at Levon Helm studios in Woodstock

How long have you been with Catskill Hudson Bank?

involved in the county and to be able to help in any

Describe your history with the bank/banking industry?

way that I can and be that visible face of the bank. I had

I joined CHB just over 10 years as Chief Administrative

done economic development previously and I just think

Officer. I’m just not a big bank guy. I enjoy the community

it’s important doing what we do to be plugged into what

bank environment, especially the interaction and getting

is happening, to know who the players are; to meet

to know the customer. I think that its valuable for me

people with similar interests and a similar mindset who

as well as for the customer and I’ve made some great

want the county to succeed and the Partnership does

friends over the years. It gives you that satisfaction when

that. It just felt like a logical fit for me.

you help them and really get to know them. I started in banking as a consumer loan officer then I became a branch manager, then I was an Investment advisor, for a couple of years, which I enjoyed. I was then President of a small community bank for a few years, then came to Catskill Hudson Bank first as executive vice president and now president.

How many branches does Catskill Hudson have in Sullivan county? What do you feel is the primary focus of the bank here in Sullivan County?

Catskill Hudson bank started as The Community Bank of Sullivan County in 1993. So that’s really where our roots are and where we have our largest customer base.

Sullivan County is a critical part of the bank’s success

When did you personally get involved with the Sullivan

as we have a huge customer base here and we have to

County Partnership and why did you feel that was

bring our A game every day.

important to do?

I’ve been on the Partnership Board since 2017. It’s important for me to have a person from the bank 32

We have 11 branches total - 6 in Sullivan County.

We’re primarily a commercial bank so our focus is on

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commercial lending, that is a lot of what we do. Of

small branch in Monticello. Our Monticello branch is our

course, we’re a bank so we have traditional consumer

flagship and we absolutely wanted to make a statement.

products, online banking/mobile banking…they’re

This was our opportunity to show our commitment to

ubiquitous today- you have to have them and they

the area where we started and that it is our bread and

have to be good. We’ve been successful in branching

butter and where we want to continue to concentrate.

out into residential mortgages as a diversifier from

We are proud of that branch and it is spectacular.

the commercial loans. We have a great and very experienced residential team. We have to broaden our appeal to the local market and I think that’s a big step.

Here’s your chance to brag about your bank and its people - what are you proud of?

Our people and their focus on doing what is right. I had

With regards to the uptick in the Real Estate Market

a zoom call recently with all our branch managers and

here since the pandemic, how has that affected the

I could see how much they care about our customers

bank? How do you compete with on-line mortgage

and the communities they serve…that’s important and

brokers such as Rocket Mortgage?

something to be proud of that they feel that way.

I’m happy to say that we are in the hottest real estate market in the country right now- the NY Times was

We are a community bank, we’re making decisions

quoted as saying that the city with the highest

locally. Our management team is not out of state, and

appreciation in housing values is Kingston NY. Sullivan

not out of touch with the markets that we’re in. That’s

County certainly has benefitted from this trend. We’ve

what separates us from other institutions.

seen an increase in the residential loan area and I think that’s great for everybody. It’s given us an opportunity with a newer product to be able to get it out there. We have a very experienced and professional team- they deliver… and that’s huge. If there’s a leak under the sink...

I am calling the plumber. I want someone who is the professional doing the job and that, to me, is where our

Very proud of our information technology and our cyber security and protecting the information of our customers. Fraud is huge right now. We continue to upgrade to a new website and our account opening platforms-trying to make it as simple and as pleasant as we can for our customer.

value is. Largely, we’ve seen and done it all. Real estate is probably the biggest financial purchase that most people are ever going to make- I would recommend that you put that in the hands of a professional.

If you were to sit down with a new member of the Partnership board, what advice would you give them?

I think it is getting to know the strengths of everyone else on the board. There is a lot of talent in diverse

What trends are you seeing in the banking industry?

COVID-19 has changed a lot of things and there’s going to be certain aspects that will persist as a result of it.

Many of the functions that you had to do historically at the branch, you can now do with your phone. But I think the in-person experience is important for everyone- for the customer -for the staff, so that you really get to know people.

areas and they all have the same focus-they’re all trying to improve the county.

Right away you all have that common bond. I think it’s about bringing your own skills and experiences, and that’s just going to broaden the board and enhance the Partnership’s ability to do what it does which is to drive economic development.

There is certainly a trend in our industry to have smaller branches. On the contrary, we did not build a Sullivan County Par tnership for Economic Development

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Spotlight Filming Continues Are you interested in being in the spotlight? Beginning in March, the Partnership will continue filming its member spotlight videos. These short videos provide a great opportunity for you to highlight your business to other members and maybe reach a new customer or two! They can be filmed at your location or in our office. All spotlight videos are shared on our website and social media platforms.

Please contact Jen Cassaro, Director of Membership and Special Events, via email at cassaro.jen@scpartnership.com or call our office.

Here are some past Spotlight businesses!

Serving the Mid-Hudson and Capital Regions

It comes down to People Integrity, Safety, Knowledge • Commercial Lending • Residential

ple Mortgage

• Recognized Cybersecurity www.CHBNY.com CHB117_20 bullets/MontCounty pic Ad clr 8x4.875" .indd 1 34 Sullivan Par tnership

(877) CHBNY 15 for Economic Development In the Know

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SPRING 2021

10/8/20 9:35 AM

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C E L E B R AT I N G 5 0 Y E A R S I N B U S I N E S S

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T 845 896 2229 F 845 896 3672 cuddyfeder.com

RJ Smith NYS Licensed RE Broker rj@randcommercial.com

Organizations; Real Estate Law; Telecommunications; and Trusts, Estates & Elder Law. We’re your strategic advisors, addressing not only your legal needs but your business and personal ones as well.

TEAM RJ SMITH COMMERCIAL INDUSTRIAL INVESTMENT REAL ESTATE SITE SELECTION Serving Sullivan County

John Lavelle NYS Licensed RE Broker john.lavelle@randcommercial.com

Rand Commercial 55 Main Street PO Box 668 Pine Bush, New York 12566 845-744-2095 office info@randcommercial.com randcommercial.com

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SPRING 2021

Civil / Site Planning Environmental Compliance and Remediation

Proud to serve as a Sullivan County Partnership Gold Sponsor

Environmental Permitting and Ecological Services Geotechnical Engineering Structural Engineering Surveying, Mapping and Construction Stakeout 3D Lidar Scanning

CORPORATE HEADQUARTERS 70 Pleasant Hill Road Mountainville, nY (800) 829-6531 www.tectonicengineering.com Sullivan County Par tnership for Economic Development

Special Inspections and Materials Testing |

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Members on the Map

4

7

Roscoe

3

10 6

12 13

Grahamsville

Ferndale

9 15 1 South Fallsburg

8 Monticello

11 Pine Bush

14 Bloomingburg

5

Middletown

2

Milford, PA

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Sullivan County Par tnership for Economic Development In the Know

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Ever wonder where our members are located?

From Pennsylvania to Albany, they’re not just from Sullivan County! Each issue, we’ll be calling out members from all over the map. Special shout out this month to the Sullivan County Democrat, celebrating 130 years in business in 2021.

1 A.Alport & Son, Inc. Plumbing and Heating Supplier Alport.com 845-434-7500 5337 NY-42 South Fallsburg, NY 12779 2 Davis R. Chant Realtors Real Estate ChantRe.com 570-296-7717 106 E. Harford Street Milford, PA, 18337

6 Grey’s Woodworks, Inc. Custom Woodworking GreysWoodworks.com 845-985-7006 7862 State Rte 55 Grahamsville, NY 12740

11 Mercuio-NortonTarolli-Marshall Engineering & Land Surveying, P.C. Engineering & Land Surveying MNTM.co 845-744-3620 45 Main Street Pine Bush, NY 12566

7 Keystone Associates, LLC Engineering KeystoneAssociatesLLC.com 607-722-1100 58 Exchange Street Binghamton, NY 13901

3 Do Good Spirits Alcohol Production ProhibitionDistillery.com 917-685-8989 10 Union Street Roscoe, NY 12776

8 Kristt Kelly Office Systems Corp.

Office Equipment Kristt.com 845-794-6639 369 E Broadway Monticello, NY 12701

4 ENVISION Architects Architects EnvisionArchitects.com 518-462-1848 52 James Street # 2 Albany, NY 12207

9 La Belle Farm, Inc. Agriculture LeBelleFarms.com 845-295-0063 504 Stanton Corner Road Ferndale, NY 12734

5 E. Tetz & Sons, Inc. Concrete, Aggregate, Asphalt Etetz-Sons.com 845-692-4486 130 Crotty Road Middletown, NY 10941

10 Liberty Iron Works/ Neversink Steel Corp.

Steel Fabrication LibertyIronWorks.com 845-292-4611 12 Asthalter Road Liberty, NY 12754

Sullivan County Par tnership for Economic Development

12 Schumacher Systems, Inc. Commercial Construction SchumacherSystems.com 845-887-5381 1043 County Road 164 Callicoon, NY 12723 13 Sullivan County Democrat Media/Newspaper SC-Democrat.com 845-887-5200 5 Lower Main Street Callicoon, NY 12723 14 Superior Surfacing Systems, LTD. Commercial Asphalt Paving & Const. Services Superior-Surfacing.com 845-733-5507 21 Allen Lane Bloomingburg, NY 12721 15 The Center for Discovery, Inc. Not for Profit TheCenterforDiscovery.org 845-707-8506 31 Kinnebrook Road Harris, NY 12742 |

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Upcoming Events April 29: Spring Networking 5:30 PM – 8:30 PM Solaia, 3317 NY-42, Monticello NY 12701 Sponsored by The Pike Company

April 7-9: 2021 NYSCAR Spring Commercial Real Estate Virtual Conference Click here for more information

845.794.1110 SCPartnership.com 196 Bridgeville Road Monticello, NY 12701

Spring 2021 (DATE TBD): Breakfast Series Tomorrow’s Technology For Today’s Small Business Sponsored by FasTrax Solutions

May 13: Ladies Night: Women in Business Networking 5:30 PM – 7:30 PM Sponsored by TRRAC

June 24: Summer 2021 Kickoff 5:30 PM – 8: 30 PM The Eldred Preserve 1040 State Rte 55, Eldred, NY 12732