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Developer seeks $1.75 million DRI award for Pelton Manor rental conversion
Summary
Pelton Partners requested $1,750,000 in DRI funds for an $18.65 million plan to convert Pelton Manor to a multifamily rental development, saying litigation that had stalled the project is resolved and that bank and partner financing are in place pending final construction drawings.
Pelton Partners asked the Local Planning Committee for $1,750,000 in DRI funding to support an $18,652,316 proposal to convert the Pelton Manor site into a new multifamily rental community. The presentation on behalf of Pelton Partners was led by Wayne Nusspiegel, who outlined the project cost, proposed rents and financing status.
Nusspiegel said the pro forma in the application shows total development costs of $18,652,316 and that targeted monthly rents will fall roughly between $2,100 and $2,900. He said Rhinebeck Bank has provided a letter in the application package indicating a willingness to provide permanent debt and that the developer expects roughly $14 million of bank financing plus about $3 million of partner equity to complete the capital stack.
“We have the system in place,” Nusspiegel said, referring to a rent-regulated workforce-housing monitoring program Hudson River Housing would administer; he said he can submit a program outline as a follow-up. He added that the team can provide rent rolls from other nearby properties they operate as evidence of market support.
Nusspiegel told the committee the project was delayed by litigation but that the developer prevailed and there is no stay; as a result, he said the team is advancing design and anticipates being ready to bid construction drawings in about two to three months and could be ready to go to construction in roughly six months. He also said the developer expects to absorb cost increases with partner equity if needed.
When asked where the DRI funds would make a difference, Nusspiegel said the award would improve the project’s rate of return and therefore the financeability of the deal, pointing to the pro forma’s 10-year internal rate of return as the financial metric the team is managing.
The presentation included questions about unit mix and readiness: Nusspiegel said the proposal includes studios, one- and two-bedrooms, one-bedrooms with dens and artist lofts (unit sizes roughly 750–1,300 square feet) and that no three-bedroom units are currently proposed. He said the building design meets current New York State Building Code requirements after a recent code review.
The LPC was told the developer has public and shared interior space planned for tenant and community use, and Nusspiegel said the team had previously sought nonprofit partners for the historic Pelton Manor space but that timing and zoning complications led the team to prioritize housing in the initial phase. He said the project team will continue outreach and provide requested detail on unit counts and sizes after the meeting.
No formal action or vote occurred at the meeting; the LPC asked follow-up questions and was advised that a public workshop and open online survey will continue to gather community feedback before the committee’s next scheduled review.
