“It”™s not every day someone is willing to build on spec, especially in this economy,” said Orange County Executive Edward Diana. He credits the 1.2 million-square-foot development planned by Hudson Valley Crossing L.L.C. to be a “show of faith in the fastest-growing county in New York state.”
Donald Pusey, owner and sole director of the company, and his director of operations Gary Drumheller held a Hamptonburgh groundbreaking ceremony for just such a project June 30. Despite a dour market, Pusey, who has enjoyed a successful track record in Pennsylvania, looked specifically for a site that had rail available (in this case, Norfolk-Southern) and connector roads to a major interstate (the I-87/I-84 corridor). Despite the slump in the real estate marketplace, Pusey had plenty of good things to say about New York, a state often criticized for being one of the worst to deal with when it comes to being business friendly.
“Everyone ”“ from Bob Scherreik at McBride Real Estate, Â to the Orange County Partnership, Â Mike Torrelli at the Empire State Development Corp., to the towns of Hamptonburgh and Montgomery ”“ were terrific to work with,” said Pusey during the groundbreaking. “Tough, but professional and fair. You can”™t ask for more.
“New York has been pictured as an unfriendly state in which to do business, but for me, it wasn”™t the case,” he continued. “But every state has laws, regulations and ordinances to deal with and some can be unbelievably tough to work with. And yes, there is truth in the argument that it is cheaper to build in the southern states. But my clients don”™t want to be in the South. They want to be here in the Northeast corridor.”
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Maureen Halahan, president of Orange County Partnership, pointed to the many large distribution centers that now line Neelytown Road, laughed down by critics when first proposed by then County Executive Lou Heimbach during the 1980s. Hudson Valley Crossing, which currently is accessed via a road in the town of Hamptonburgh, will be connected to the growing ranks of distribution centers on Neelytown Road. Getting that connecting road  built is Pusey”™s first priority.
Pusey said the Hamptonburgh/Montgomery/Newburgh area is desirable and, contrary to what is often heard, New York “really is working to bring business and jobs to the region. Right now, we are negotiating with 12 companies to determine exactly how this 1.2 million-square-foot space will be built out.”
At present, Pusey is holding off on building the entire project: “Because we don”™t know who the tenants are yet. We”™re estimating between 200 distribution jobs to a combination of 960 manufacturing/distribution jobs will come into the region as a result of Hudson Valley Crossing. Â If we cannot finalize a deal with a tenant, at least one building ”“ at 600,000 square feet with access to the rail service ”“ is going up.”
Plans call for a ”˜tilt up”™ building, a popular method of building in many states, particularly in the New Jersey-Pennsylvania corridor. Unlike conventional construction, tilt-up buildings are built with concrete walls that are pre-cast and cured on site, then tilted up into place.  “It is not as well known in New York yet, but I expect it will be,” said the developer.
Halahan saidAmscan and other buildings in the Tetz Industrial Park in Chester have used the same technology. “I think we”™ll be seeing more of it, too, as time goes on, in the commercial market,” said Halahan.
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Pusey estimated the cost “to get to this point ”“ settlement, down payments, legal and engineering fees ”“ to be somewhere around $9.1 million. That doesn”™t include any improvements. Although the market was different two years ago, the value of the property hasn”™t changed. It”™s in a great area for some companies, and it is the only site in the area approved for our needs and ready to go.
“Many identify the Hudson Valley with its rural charm and also with the development that is coming here,” said Pusey. “At first, I felt reluctant to call the project Hudson Valley Crossing but I realize the value of identifying  with the region. The fact that Stewart International Airport, the new interchange connecting the two major highways, I-84 and I-87, is going to be ready by 2009 are very important to companies looking at this property and the area.  Naturally, the future of Stewart and cargo coming in are an important factor, as well.”
Harris and Son were awarded the site work for the project. Â The Pearl River company is a union shop, said Pusey. While not obligated, he intends to try to work with the union trades on this construction.
As for going “green,” Pusey said Hudson Valley Crossing will be as environmentally friendly as possible for its type of construction. “We”™re not looking for LEED (Leadership in Energy and Environmental Design) certification here. Every contractor involved has been asked to come up with energy guidelines. We”™ll do our best to be as ecologically mindful and environmentally friendly as possible. It is easier in office buildings, where initial costs can be recovered in utility bills each month. For distribution and light industrial, there”™s a different set of criteria.”
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