10 Galloway Ave: First Success of City of Newburgh's Public-Private Housing Partnership Initiative

September 14, 2007: City officials celebrated the completion and pending sale of the first property to be redeveloped through the City of Newburgh Public-Private Housing Partnership Initiative.

RYM Investments recently finished work on 10 Galloway Avenue, a single-family residence in the West End, and has just received an offer for the house. The three-bedroom, two-bath home features hardwood floors, completely remodeled kitchen and bathrooms, a new driveway and an enclosed garage.

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The Public-Private Housing Partnership Initiative was created as an alternative to the customary auction of city properties. In June of 2006, the city issued a Release for Qualifications (RFQ) to identify qualified developers to collaborate on the newly established initiative. Developers were required to have a demonstrated track record of housing development and expertise, sound financial backing, and a strong commitment to implementing creative, quality development in a timely manner.

Most importantly, the developers were sold City-owned properties to rehabilitate and re-sell only to owner-occupant homeowners.

During this first round, 13 properties were offered for redevelopment to private developers. All are currently under contract — including another three to be redeveloped by RYM. The other partners are Thruway Builders, Spectrum Development and Primo Contracting.

A minority-owned business based out of Suffern, New York, RYM brought extensive experience in redevelopment of large and small scale projects in New York, New Jersey and Florida. Their experience was combined with locally based partners to establish a highly qualified and well financed team to undertake this project. As further testament to their commitment to the city, RYM offered a $5,000 concession towards closing costs to prospective homebuyers, who are also City of Newburgh employees.

Said Ralph Mayorga, President of RYM, "I feel that the City of Newburgh has great potential, and with the continued support of city government, that potential can only increase. This is a beautiful city and we are very proud to be a part of its renaissance."

Mayor Nicholas Valentine commented, "Historically, the city would make money by auctioning off properties, but with many of them remaining undeveloped, or reverting back to city ownership for one reason or another, the benefits proved to be a short-term solution to a pervasive problem."

"It's our first success of this initiative — the first of many more to come. This reflects a true partnership — our Planning & Development Department reviewed budgets, helped orient RYM to the City and our approvals process, and stayed in touch throughout. There was no subsidy provided at all, and best of all, 10 Galloway Avenue and 12 other properties will now be back on the tax rolls, and owner-occupied," said City Manager Jean-Ann McGrane.

Anyone interested in obtaining a list of properties redeveloped under City of Newburgh Public/Private Housing Initiative should contact Lourdes Zapata-Perez, Director of Community Development, at 569-9400, x203.