Rockland County developer invests over $10 million in Poughkeepsie: What's planned
A Rockland County developer who purchased The Chance theater has also bought over a dozen other properties in the city of Poughkeepsie in the past four years with plans of moving the city's revitalization forward.
During the COVID-19 pandemic, Chai Developers LLC, headed by Bernard "Berry" Kohn, established itself in the city with purchases such as the Italian Center, the offices that front the famed Bardavon theater and the 160 Union Street building which was turned into a 39-unit apartment building.
The reason for Chai Developers' latest purchase, the aged rock n' roll theater on a corner of Main Street near several empty storefronts, is to modernize the performance venue and use it as a catalyst to revive the area.
Housing: Hudson River Housing opposes Dutchess County's plan for shelter in Poughkeepsie
Earlier this year, the developers made a last-minute decision to throw their hat in the ring to redevelop the city's prized southern waterfront property, having already invested over $10 million in the city.
"There has got to be a splash, there has got to be something that happens on a bigger scale and puts it on the map," said Jay Blumenfeld, who runs operations for the company. The developer started in the Hudson Valley region by owning properties in Beacon and in Highland.
Other properties the theater buyer owns
About a month before finalizing the purchase of The Chance, the developers closed on a residential and commercial property at 316 Main St. previously owned by Baxter, a well-known developer with projects throughout the city including The Academy, Mill House Brewing Co. and Luckey Platt, a 110-unit market rate building on Main Street.
Eric Baxter would not comment on his reasons for selling.
Chai Developers plans to build 80 apartments, of which 10% will be affordable, at 316 Main St.
"One of the things that we've always believed in is that it has to start on Main Street and Main Street has to be revitalized for the rest of the city to be lifted up. Main Street is probably the prime example of a lack of housing," Blumenfeld said.
He believes one of the key ingredients of revitalizing the city is increasing the population of the downtown area and in order to do that, there needs to be more housing, both market rate and affordable. Chai Developers have also purchased several smaller housing properties on Union Street.
Economy: This semiconductor firm is expanding its NY footprint. What it means for Dutchess County
Where current development projects stand
Last year, Chai Developers purchased Hudson Valley Office Furniture.
Blumenfeld said they hope to turn the furniture store into a boutique hotel, remaking that area of Main Street, and have similar plans for another site they purchased at 31 Market St., which houses the Bardavon Box Office and other offices.
Chai Developers has not developed concrete plans for the former Italian Center building purchased in 2021, a project Blumenfeld also said has not moved forward due to zoning issues.
What's planned at the waterfront
Chai Developers was one of two developers to respond to the city's request for expressions of interest to redevelop a prominent stretch of waterfront property. The other developer was Joseph A. Bonura, who was the initial developer on the project which had stalled. The city's administration has paused the process to select a developer for the project until after the new administration is established.
Chai Developers had proposed a city-owned park and a paved pathway running the full length of the shore and bookended by a 12-story hotel and conference center to the south and a "Market Hall," boathouse, shops and offices to the north.
Development: From churches to industrial buildings, 'non-traditional' venues are shaping Poughkeepsie
Poughkeepsie has the potential to have a "real renaissance" because it has a train station, infrastructure, colleges and is the county seat, the developer said.
"At this point we are not looking at any individual project at all," Blumenfeld said. "We're looking more at the city as a whole. How can we connect all the dots and make everything work together?"
What will happen with The Chance
The Chance had been on the real estate market for years before Chai Developers purchased the property with hopes of expanding and modernizing the building.
The aging club opened in 1926 as a vaudeville house called the Dutchess Theater and changed owners many times before landing in the hands of Frank Pallett in 1995. Pallett's family had first grown enamored with the club years earlier when Pallett's band, Big Guns, took the stage. They purchased it together and poured $30,000 in improvements into the longtime music venue.
Pallett, who died in 2021, brought in musicians such as Bob Dylan, David Bowie and Ted Nugent, along with comedy acts and other types of entertainment.
"We had never ever thought for a second of buying The Chance and not keeping it The Chance," Blumenfeld said.
They plan on extending the back of The Chance to include a backstage area, green rooms and bathrooms and a control booth.
The developers do not have a timeline for how long it will take for construction to begin and to reopen the theater. They are looking for a new operator before they begin the process. The last show under the old operator will be in October.
"When (The Chance) went on the market we really wanted it and it just was very hard to make the numbers make sense because it needs a serious amount of rehab work and we're not ones to put a Band-Aid or lipstick on a pig. We want to do it correctly," Blumenfeld said.
Saba Ali: Sali1@poughkeepsiejournal.com: 845-451-4518:@MsSabaAli.
This article originally appeared on Poughkeepsie Journal: Poughkeepsie development: What's next for The Chance, Main Street
