The Newburgh City Council was presented on Thursday, March 7 with an initial proposal for a new mixed-use, mixed-income development at 35-37 Broad Street. The current site is a grassy area along Water Street, in the East End of the city.

The project was presented by FD Water Street Holdings, represented by Jonathan Gatsik and David Marks of the firm PKF O’Connor Davies. Discussing the brief history of the property, it was acquired by FD Water Street Holdings in April 2021 from the city and with the purchase came two restrictions in the deed.

The first restriction was a reverter clause requiring a parking lot built by April 26, a little over a month away from the Thursday night council meeting. The second restriction was the sole construction of a parking lot built to accommodate 132 spaces. Gatsik stated to the council that a parking lot does not seem to be the best use of the property.

As defined by Legal Explanations, an online legal definitions website, a reverter is “the event by which a property transferred to another person is returned back to the original owner on due fulfillment of the provisions contained in the original deed of transfer.”

The site today is located between Water and Montgomery Streets. The development would comprise up to 60 apartments, with a mix of affordable and market-rate housing. Several apartments in the development would be reserved for city residents who are artists, designed as live/work spaces.

The project would feature three commercial spaces, with one being reserved for a female or minority city resident that has a business within the city. The tenant would be given a below market rent for three years to allow the business to flourish.

Gatsik also spoke about the design of the project. “First we wanted to preserve the viewshed of the residents on Montgomery St. That’s important,” he said. “We would design the project consistent with historical records. We would also make every effort to preserve as much green space as possible.”

Gatsik also mentioned that a right to return provision would also be included in the project. A right to return provision would allow current residents or descendants of victims of the Urban Renewal process a preferential right to rent the apartments. The site sits adjacent to various properties that were affected by the Urban Renewal Process, waiting to be one day redeveloped.

The request from city council would be to grant a one year period to stay the reverter and work with the city council, the corporation counsel and the planning department to refine the plan and amend the deed restrictions. Councilmembers gave comments and were supportive of the presented project.