Mid-Hudson Valley market looks for upswing.

Since IBM closed its two million square-foot plant in Kingston, NY, and began scaling back its operations throughout the Mid-Hudson Valley three years ago, the region's economy has suffered a severe setback that persists today.

According to a recent report by Marist College Bureau of Economic Research, all the adjoining counties except Rockland and Columbia have experienced overall job losses. Decreases have been felt in various sectors, although manufacturing has declined throughout the area - especially in Dutchess and Ulster counties, where it dropped by more than a third.

Nevertheless, some positive trends recently have emerged, according to the first-quarter 1995 report: as a result of a general pattern of job growth and the shrinking labor pool, unemployment rates declined throughout the region. Services remained or grew in all counties but Sullivan.

Investing for a Turnaround

Anticipating an economic turnaround, the Kingston-based Deegan Development Group, Inc. (DDGI) is making significant investments in revitalizing its hometown. Among these is Deegan Building II, a 15,200 square-foot office building, which will provide space for the Social Security Administration and the New York State United Teachers Association. York Hunter is providing construction management services, and Liebman-Hurwitz & Associates of New Paltz is the architect.

Founded in 1988, DDGI provides development services and also operates Re/MAX Realty locally.

Among DDGI's other recent development projects in Kingston are:

* Green Street Realty Building, a design/build project for the new construction of a 6,000 square-foot, two-story office building;

* Deegan Building, a new 11,200 square-foot, two-story office building completed in 1994;

* A housing rehabilitation project involving a $4 million conversion/renovation of a 40,000 square-foot mill into 38 housing units; and

* Deegan Professional Building, a $1.7 million two-story office building.

New, Expanded Health Care Facilities

Several health care providers also are expanding in the area. This Spring, Mid-Hudson Family Health Services Institute completed a new 22,680 square-foot medical building to serve the Kingston community with examination, laboratory, x-ray, mammography, ultrasound and intern training facilities. York-Hunter provided construction management services for the project, which was developed by DDGI and designed by Liebman-Hurwitz and Associates.

Two other Kingston health care providers, Kingston Hospital and Benedictine Hospital, are planning a shared use of improved and expanded laboratory facilities. York Hunter will begin construction on the 12,000 to 15,000 square-foot facility later this year.

Meanwhile, in Poughkeepsie

Across the river, Dutchess County is making a significant investment in the restoration and expansion of its county courthouse complex in Poughkeepsie. With family court services currently housed in an antiquated hotel, a major component of the program involves the new construction of a three-story plus on-grade basement, 70,000 square-foot family court/probation building.

Other elements of this $15 million project include the historic renovation of the two-story, 6,500 square-foot Old City Hall; historic renovation/reconstruction of the five-story 16,000 square-foot courthouse annex; renovation of 18,000 square feet of space in the existing courthouse; and construction of a three-story, 7,000 square-foot prisoner control addition to the courthouse. York-Hunter is working with the Dutchess Design Group of Poughkeepsie on this project, which is expected to be completed by November 1996.

In a region clouded by the "downsizing" of a major economic contributor, these projects are welcome signs of optimism about a brighter future for the Mid-Hudson Valley. York Hunter shares this optimism, so much so that we have recently opened an office in Kingston to serve existing clients and take advantage of the continuing opportunities.