On April 9, the Empire State Development Corp., which is handling the sale, and Heartland Acquisition Corp. of Edgewood (Long Island) reported that they had mutually agreed to terminate a purchase agreement reached in April of last year. That deal involved the acquisition of 335 acres of surplus state land surrounding the Rockland Psychiatric Center grounds.
Officials with Empire State Development said the agency would be working with the town of Orangetown in order to remarket the property for sale. In terms of specifics concerning the failed purchase agreement, spokesperson Maura Gallucci referred all questions to the Long Island-based developer.
Jerry Wolkoff, a principal of Heartland, tells GlobeSt.com that a number of issues caused the firm to terminate the purchase agreement. Those included easement issues that needed to be addressed and some local opposition to the scope of the development his firm had envisioned for the property.
Wolkoff relates that while no formal plan was ever presented to the town of Orangetown, the company had envisioned building senior housing and single-family homes on the property. In total, Wolkoff says that "several thousand" units would have been built if the company had closed on the sale with the state. He adds that Heartland may bid on the property once again if some issues surrounding the property are addressed by New York State.
Town of Orangetown Supervisor Thom Kleiner notes that a key issue impacting the Rockland Psychiatric Center site is the extensive remediation that needs to take place. He says that there are 60 to 70 unused buildings on the property totaling approximately three millions sf that must be demolished.
However, prior to demolition, the buildings would have to be remediated due to the presence lead paint and asbestos. In addition, a number of dump sites on the property would also have to be cleaned up. Kleiner estimates that the remediation costs would be "in the tens of millions of dollars."
It should be noted that New York State still operates the Rockland Psychiatric Center adjacent to the parcel that was up for sale and currently treats approximately 400 patients there. Kleiner says he believes Heartland decided not to pursue the purchase due to the high environmental clean-up costs and the resistance the company felt towards its plans to build up to 5,000 housing units on the Rockland Psychiatric Center parcel.
Wolkoff did not go into specifics concerning the company's decision to terminate the purchase agreement, but did say that the town's resistance to its development plans was not the chief reason for its decision to back out of the deal. The Town Supervisor comments on the failed sale by saying, "In deference to the developer, but we are pleased to be able to get a second shot at this."
He notes that there is 126 acres of vacant land that overlooks Lake Tappan that would be ideal for recreational use and some senior housing. He did not rule out the possibility of the town acquiring the property at market value from New York State, if that parcel was sold separately. Also housed on the property is a nine-hole golf course.
Kleiner relates that the 60 to 70 vacant properties and the environmental problems that go with it on the eastern section of the property, needs to be addressed either by New York State or a future buyer in the future. Kleiner notes that the town and New York State must work together to make the property more marketable and at the same time achieve the town's development objectives for the property which include senior housing, recreation and light industrial development.
"We have to understand why this developer left," Kleiner stresses.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
