More than a dozen Saugerties residents had something to say about developer Tom Struzzieri’s plans to renovate two buildings in Saugerties and rent them as satellite rooms to the hotel in his Diamond Mills complex. He had originally proposed three buildings, but he withdrew a multifamily building on Washington Avenue. The standing-room crowd at a public hearing before the Village Planning Board on Wednesday, March 8 numbered around 70.
All but two of the speakers opposed granting a Special Use Permit required to make the change. Most cited the lack of affordable housing in the Village, arguing that bed-and-breakfast establishments or other forms of short-term rental take homes off the market and contribute to the problem.
Struzzieri is seeking a Special Use Permit to allow him to convert two properties he owns in the Village of Saugerties from ordinary rental properties to hotels. He owns more buildings in the Village of Saugerties, and several speakers speculated that he would be back before the Planning Board with more proposed conversions.
Kathleen Gray said that she objects to “removing rental properties and turning them into Airbnbs or hotels or whatever — something that’s not like a normally occupied residence. Something that’s going to give me a neighbor, not strangers coming in and out.” She quoted former County executive Pat Ryan as saying, “We need to make sure that our frontline workers who have served our communities during the pandemic, from our teachers, nurses and firefighters, restaurant and grocery workers – all the people who have kept us safe, fed and well – can continue to live in the communities they serve.” Housing is an economic development issue, a community health issue and a moral issue, according to Gray. As people come into this community to work, “Where will they live if we eliminate the housing we have?” she asked.
Tom Francello, representing Jade Thornton, said that the family had lived in their residence on Washington Avenue for more than 100 years. While Gray’s main objection is to 141 Washington Avenue, she is opposed to all the proposed conversions “for the precedent they will set for the zoning districts in the Village.” Francello said.
The housing stock on Washington Avenue consists of predominantly owner-occupied single-family homes, and the proposed multifamily facility would not fit in. The zoning change requested requires that the buildings have a number of specific features, while the plans that have been presented are vague and will require much more detail, Francello said. He offered a long list of details that need to be shown on the plans and considered by the board. He also contended, “The issuance of a Special Use Permit will change the character of this neighborhood and the village as a whole.”
Ann O’Brien said that any Special Use Permit that removes residential housing in Saugerties is inappropriate, “given the housing crisis that we have here.”
Inka Rector said that granting the requested permit “would set a precedent for other developers who would want to come in and do similar things.” An increase in hotel-type accommodations in residential neighborhoods would change the character of the community, making it a different kind of place from where she and her family chose to live.
Josepha Gutelius, one of only two speakers completely in favor of the project, recalled the days when “Saugerties was a pathetic, depressed place. After the heyday of IBM, the downtown was absolutely in ruins, abandoned — most buildings, anyway — so I feel that Saugerties is getting by because of visitors and tourism. I think that’s the backbone of the village, so I am definitely in favor of hotels in the heart of the Village; I think they are much more favorable than the hotels out by the Thruway. I think that is just Anywhere, USA.”
Jennifer Mangione said that she understood that several other properties belonging to Struzzieri Properties would be coming forward. “I don’t think hotels or motels ought to be allowed with a Special Use Permit in the R-3 or the B-1 District. I really feel strongly that the board should consider removing that as an option for a Special Use Permit, because it will change the fabric of our community.”
John Schoonmaker, a former Town Board member, also referred to the shortage of rental housing in the Village. “The proposal would take valuable housing stock out of circulation at a time when we need to be creating better tenant protection and increasing affordable housing stock.” Schoonmaker asserted that the housing on some streets — he specified Jane Street — seems to consist of nothing but short-term rentals. “Now we’re considering allowing a hotel to have not one, but four satellite locations, with more likely to come.” He urged the board to turn down the application for a Special Use Permit.
One neighbor said that his family has owned a house on Jane Street, close to Struzzieri’s Jane Street building, for many years. He was one of the two supporters of the project, citing the poor condition of 8 Jane Street prior to Struzzieri’s ownership. “I’m in favor of Struzzieri making improvements to buildings that actually need it,” he said, noting that there are many Airbnbs in Saugerties that are unregulated, while Struzzieri is seeking hotel status, which requires him to meet standards. “I think we can trust Mr. Struzzieri, from what he’s done in the past with the HITS properties, with Diamond Mills.”
Diane Colello said that she is a landlord, and she opposes taking rental housing off the market for short-term or tourist housing. While there are new housing developments going up, “They are not in the affordable zone,” she said. “Some of these buildings that don’t look tip-top are perfectly adequate for people to live in.” Deb Wells, who runs the HUD program in Saugerties, told her that she has funding to get low-income people into housing, but the apartments that meet HUD guidelines are not available, Colello said.
Michelle Aizenstat said, “It’s ironic that just when everyone is saying everyone has had it with Airbnbs, and communities are starting to regulate them, along comes this proposal that embodies two of the worst things about Airbnbs. One is the problem of investors buying many properties to use for Airbnbs, and the other is the sheer volume of transient customers that come in as a result.” The good side of Airbnbs is that citizens who own one or two properties can make some extra money, she said. But if investors come in and buy multiple properties, that’s a completely different scenario. “That is something that seems to be starting to happen now,” said Aizenstat. What is needed is a way to allow for short-term rentals on a limited basis while preventing speculators from buying up large amounts of property. “This proposal is the worst part of Airbnbs, with someone coming in with a lot of money, buying a lot of property and turning it all into short-term rentals.”
As speakers began to leave, Planning Board member Andrew Zink thanked them for coming and commented that the large turnout “gives me immense hope to see so many people having come out to talk about something they care about, and that matters so much.” He moved to keep the public hearing open; the board voted unanimously to do so for each of the two locations.
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