20 Cedar Street Kingston, NY 12401
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- Barbara Elliott
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1 20 Cedar Street Kingston, NY E 2 (pronounced EE-two or EEsquare or Energy Square ) is symbolic of exponential power, representative of the many energies coming together at this location: human, dance, music, talent, technology, solar, geothermal, community. The proposal at the former MidCity Lanes bowling alley takes another vacant site in the City of Kingston s core to answer stated community needs and to provide safe, sustainable and affordable housing. The co-location of a community-based arts education program with a tech incubator and other community-serving enterprises will anchor 10,000-square-feet of commercial-civic space that occupies much of the emerging design s first floor. The upper floors of this 5-story construction are dedicated to 57 units of affordable rental housing, to be constructed, owned and managed by RUPCO, a trusted community partner with a proven track record for delivering high-quality affordable housing in the City of Kingston. The Midtown location -- in the heart of Kingston s Business, Education, Arts & Technology (BEAT) Initiative makes this an ideal location for a mixeduse proposal, with proximity to jobs, healthcare, retail, restaurants, parking and trails. A scenario in Build it and they will come, the introduction of E 2 to Kingston can well be the catalyst of attracting young professionals through the healthcare, arts and technology prospects by providing them an affordable place to live close to where they work. RUPCO is responding to an expressed community need: the Center for Creative Education has outgrown its current facility and asked for our help. Similarly, Hudson Valley Tech Meet-Up is expanding and needs a new home as well. We see this as an opportunity for the City of Kingston to make good on its need for affordable housing, remove a derelict building from a blossoming neighborhood, and create a cutting-edge, energyefficient, community-minded living space for young professionals, working families and entrepreneurs to live, work and play. We look to accomplish all of this while addressing community needs in the heart of Kingston. Our vision is for strong, vibrant communities with opportunity and a home for everyone. We see Kingston at the turning
2 point, of embarking on a proactive path that will drive people, jobs and a vibrant economy back into Midtown. We think you will agree. Our mission is to create homes, support people and improve communities. This is what we do. The Center for Creative Education (CCE) and Hudson Valley Tech Meet-Up (HVTMU) are both committed to bringing youth programs, technical mojo and people to E 2. CCE recently celebrated 25 years of providing youth, mentoring and after-school arts programs to local children and their families. Their increased programmatic demand brought them to RUPCO. They asked us to help them realize a dream of expansion to better meet the needs of the community, young and old. New construction, built to CCE specifications, will be part of the design. While CCE will not pay for this design influence, they will fundraise to equip their space with their program necessities like sound system, programming and staffing. HVTMU is a member-based organization with over 600 technical providers, web designers, computer programmers, tech entrepreneurs and webrelated visionaries looking for a way to expand their vision and impact within the Hudson Valley. HVTMU meets every other month at The Kirkland (the other month in Poughkeepsie), and is collaborating with RUPCO to establish a cutting-edge tech incubator to nurture new tech-based businesses, ideas and innovation. Similarly, HVTMU will not directly pay for construction but will fundraise for items needed to outfit the incubator such as computers, monitors and software. Both organizations, their missions and programs dovetail with Midtown Kingston s Broadway-based healthcare corridor, the City s BEAT Initiative, and the Hudson Valley s future vision (as studied by Hudson Valley Pattern for Progress Both are invested in the community and Kingston s success. The Center 4 Creative Education (CCE) The mission of the Center for Creative Education is to create a better world by nurturing and empowering youth and community through the arts. Currently, the CCE is located two blocks from the proposed site and has outgrown its current facility. The Center s award-winning programing reaches a regional clientele, bringing people from beyond the county to Midtown Kingston on a daily basis. Innovative and high-quality programming with a special emphasis on serving low-income, minority and at-risk children and youth are core to the Center s commitment and success. The and Valley. meeting isolated valuable Hudson Valley Tech Meet-up (HVTM) Hudson Valley Tech Meet-Up is a gathering of creatives, engineers, educators, students genuine lovers of technology who share their passion for all things tech in the Hudson HVTM currently alternates monthly meetings on both sides of the Hudson River. April s saw 81 attendees at The Kirkland in uptown Kingston. The Meet-up serves as a valuable networking opportunity for many participants who are otherwise entrepreneurial and from the creative community of which they belong. A more permanent home for this function is the desired outcome of this collaboration.
3 Ulster County Community Action (UCCA) Incorporated in 1965, the UCCA has served the needs of Ulster Counties disadvantaged citizens by offering services designed to empower and increase self-sufficiency. UCCA staffs outreach centers in Kingston, Highland and Ellenville. Mass food distribution is a core commitment of the agency with scheduled distribution occurring on a continuous basis. The opportunity to introduce an organic food store with a café/bakery component could serve the broader community and provide the potential for job creation and training. Affordable Varied-Income Housing Blended with Mixed-Use Civic Space In 2009, RUPCO was one of several entities that participated in a landmark housing needs assessment for the three counties of Ulster, Dutchess and Orange. The study, written by economist Jeffery Carr, demonstrated the need for affordable homeownership and rental housing for every municipality in the three counties. The Tri-County Housing Study forecasts the affordable housing gap for the years 2010, 2015 and 2020 and called for a to be built number to help alleviate the gap. The study recommends that over 900 units of new rental housing be built in the City of Kingston by The U.S. Census estimates Kingston s population at 23,731 in This population figure has remained relatively static for the last 50 years. We d like to see Kingston bounce back to its 1960 population of 29,260, OR GREATER. People are attracted to an area because of jobs, community and affordable housing. With the expansion of the healthcare corridor and technical industry, Kingston Is poised to offer higher-paying job opportunities at a variety of skill levels. Kingston offers community attractions like arts and culture opportunities provided by Ulster Performing Arts Center (UPAC), local galleries and the O+ Festival; recreation activities like Rondout boating and Catskills hiking; quality of living standards like access to shopping, healthcare and city functionality without the Big City feel. Lastly, by constructing E 2, Kingston can offer 57 new rental units that are energy efficient, well designed and community-inspired for people to live in. All of this makes for a very attractive City. Even Bloomberg named Kingston one of the Top 10 Cities for Artists in With 57 new rental units, this proposal is a mere drop-in-thebucket compared to the need, but will help the City of Kingston remain competitive in the Hudson Valley for job creators who recognize the need for a broad range of affordable housing units. As restricted by the Low-Income Housing Tax Credit Program, the units proposed will be affordable to households (HH s)
4 earning up to 60% of the area median income (AMI), just like RUPCO s Lace Mill, which is currently 100% occupied and holds an approximate 200% subscription rate to its Wait List. Ulster County has an AMI of $75,200 for a 4-person household (HH); this equates to incomes of $31,000 - $45,000 for 1-4-person HHs. This proposal also intends to set aside 15% of the units for residents earning up to 90% of the AMI ($47,000 to $67,000 for 1-4-person HHs) in order to drive a greater income mix in Midtown. Given that the City of Kingston s AMI is lower than Ulster County s and the qualified census tract that houses this proposal is lower yet, we estimate that the income restrictions as proposed will be available to 42% of all City of Kingston residents and up to 68% within the immediate census tract. The 90% restricted units will be affordable to nearly all neighborhood residents in the qualified census tract. Affordable housing is about right-sizing what a household pays for its housing costs such that there is disposable income left over to take care of the other necessities of life and to allow families and individuals to participate economically in their communities. Affordable housing can be targeted to households at different income levels simply by restricting the portion of their income spent on housing generally to 30% of income. Then families can provide for food, clothing, transportation, entertainment and medical needs the other necessities of life. Of course, communities benefit and in particular the local job creators -- otherwise known as local businesses -- benefit from the addition of more disposable income. Economic Impact of Delivering $20-million+ Construction Project to Kingston This table, from the National Association of Home Builders report ( The Local Economic Impact of a Typical Affordable Housing Tax Credit Project, September 2005), demonstrates the average economic impact of construction on an area. Local Income One-year Impact of Construction + Multiplier Effect of 100 Family Units* Local Business Owners Income Local Wages & Salaries Local Taxes $7,824,000 $1,825,000 $5,998,000 $742, Ongoing, Annual Effect that Occurs When New Homes are Occupied* Local Income Local Business Owners Income Local Wages & Salaries Local Taxes $2.184,000 $946,000 $1,238,000 $324, Local Jobs Supported Local Jobs Supported *National Association of Home Builders report: The Local Economic Impact of a Typical Affordable Housing Tax Credit Project, September If we estimate the economic impact of adding 57 new households to the Midtown economy, the scenario looks like this: 57 new households with a conservatively low disposable income of $100/week generates $5,700/week of disposable income spending with Midtown businesses. Apply a modest Multiplier Effect of 3x Impact where this newly introduced, disposable income recycles through Kingston 3 OR MORE times in one year generates $889,200. That s NEARLY ONE MILLION DOLLARS in NEW COMMERCE and economic revenue to the local economy as a result of introducing 57 households to Kingston and expanding the population density and diversity.
5 E 2 Energy Square Proposal Snapshot 1.5 Acre site 57 Total units 700 Solar panels 70,000 Square feet total 2 Studios 200 Kilowatt capacity 10,000 Square feet civic space 44 1-bedroom 2,000 Square feet of solar surface 60,000 Square feet residential space 8 2-bedroom 3 3-bedroom Amenities include: Net-Zero-for-Living (100% energy consumed on site is generated on site), energy-efficient appliances, Sky Deck, 2 nd - floor outdoor community gardens and gathering space.
6 Taxes Brought to City of Kingston: RUPCO has consistently and reliably paid its share of School, County and City taxes over the years. In 2015 alone, RUPCO will pay over $200,000 in taxes, while not overburdening the school district (as many of our properties house senior residents). However, RUPCO s neighborhood presence has helped improve the local economy in which we live and work City of Kingston Taxes Paid Building General School Total The Stuyvesant 37 John Street 41, , , The Kirkland 2 Main Street 28, , , Hasbrouck Hasbrouck Avenue 3, , , Hunter 134 Hunter Street 3, , , The Pettit House 101 Franklin Street (a RUPCO-owned unit) 1, , , The Lace Mill* 165 Cornell Street 55,000 Total: $77, $103, $236, *$25,000 PILOT in and then $55,000 after construction
7 Why This Housing Proposal Now? This is an opportunity to a. Bring over $20-million+ of new money to the City of Kingston b. Build the first new construction in the City of Kingston in decades c. Jumpstart the future vision for the City of Kingston in concert with the City s Draft Comprehensive Plan d. Create the first Net-Zero for Living building in the Hudson Valley thereby placing Kingston as a regional leader demonstrating energy-independence can be done well and cost effectively in city centers e. Add innovative accommodations to Kingston s available housing stock, attractive to people looking to relocate, downsize or establish Kingston as their new home base f. Address the need for affordable housing in the City of Kingston, an IDENTIFIED NEED in the Tri-County Housing Report g. Create a dynamic, vibrant, safe neighborhood by bringing density PEOPLE, their families and their spending dollars to Midtown h. Prepare the City for the future growth spurred by Kingston s growing healthcare corridor and newly designated Midtown Arts District i. Stabilize taxes by bringing new people into the City j. Utilize a solid, existing infrastructure for the benefit of an expanding City population k. Establish the City of Kingston as an innovator in community development through affordable housing and energy efficiency l. Invent creative, outdoors like a 6 th -floor Sky Deck meeting space, a 2 nd -floor community garden area, and solar-roofed carports m. Nurture the local businesses, schools, neighborhoods, creativity and vitality of Kingston n. Stimulate Midtown s growth by attracting people from all walks of life, and their disposable income, to the City s center
8 Local architect Scott Dutton has assembled an expert design team who is creating a mixed-use plan currently envisioning a net-zero for living concept that incorporates both geo-thermal and solar photovoltaic systems; roof-top garden; and a roof-top observation space, Sky Deck, available for catered events and meeting space. The initial design is responsive to the early 20 th - century industrial massing of the railroad corridor in Midtown Kingston and at the same time, distinctive, as a state-of-the-art, efficient, green and transformative mixed-use facility. An excellent opportunity for redevelopment and the first new construction on the Broadway corridor for at least 20 years, this proposal serves to reinforce RUPCO s vision of transforming Midtown. Supporting the arts, fostering historic preservation, creating economic uplift, and stewarding rental and homeownership opportunities are all strategies that RUPCO is currently employing to this end. Proposed Funding Sources RUPCO is applying to a variety of funding sources such as Federal and State low-income housing tax credit programs, private investors, and bank lenders with a personal mortgage holding to finance the construction of this mixed-used complex. RUPCO has submitted applications to competitive grant funding opportunities but has, as yet, to be granted those awards. As of October 2015, RUPCO has identified the following sources for short- and long-term financing of E 2 (at left). Note that the First Mortgage cited will be held with a regional/national lender. First Mortgage 1,300,000 Solar ITC 0 Federal LIHTC 10,749,297 NYS LIHTC 2,796,920 Federal Historic RC 0 NYS Historic RC 0 HCR Middle Income 0 NYS HTF 2,200,000 FHLB 0 CIF 1,500,000 CFA 4,000,000 NeighborWorks 150,000 Center for Creative Energy 2,000,000 Deferred Dev Fee 1,000,000 Total Permanent Financing 25,696,217
9 Additional resources and statistical reports to back up our findings: 2015 State of the Nation s Housing report by Joint Center for Housing Studies of Harvard University A Three-County Regional Housing Needs Assessment: Orange, Dutchess and Ulster Counties from 2006 to 2020 by Planning Departments of Orange, Dutchess and Ulster Counties of New York with project consultation from Economic & Policy Resources, Inc. (aka Tri-County Housing report) by Jeffrey Carr Successfully Marketing Affordable Housing by Hudson Valley Pattern for Progress Urban Pioneering in the Hudson Valley by Hudson Valley Pattern for Progress New York State s 2015 Upstate Revitalization Initiative Kingston Vacancy Rates CIM Study with data on Cedar Street and adjacent Midtown blocks U.S. Census 2010 with Kingston population figures U.S. Census 2010 with Ulster County population figures Summary of City Population Trends (1950 to 2000) from the Office of the NYS Comptroller Ulster County AMI Chart AIA 10 Principles for Livable Communities Last updated 10/14/15
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