A look inside Pelham development with municipal center and apartments in heart of village

PELHAM: Just two days before Christmas, the village employees were busy in the new village hall. Firefighters, now stationed next door, were heading out for an emergency call. Meanwhile, the police department’s area is still being worked on and should be ready by March.

For the first time in 50 years, all three departments are finally under one roof, thanks to a new residential project right across the street. Back in 2019, a deal was struck that allowed a developer to build a 127-unit mixed-use development on land that used to belong to the town. In exchange, the developer agreed to cover the costs—around $20 million—to create a municipal center that includes a village hall, police, and fire departments.

Mayor Chance Mullen shared that the community is really looking forward to the new municipal center being at the heart of the village. It’s not just a building; it’s going to be a place for residents and community groups to gather. He mentioned how everyone involved feels a sense of pride, knowing this building will serve the community for generations.

The new Pelham municipal center, located on Fifth Ave., is set to include a village hall, police department, and fire station. Construction kicked off in early 2023 and is expected to wrap up in early 2024. The village government and fire department have already moved into their new digs.

The $115 million Pelham House project features a 27,000-square-foot municipal center and a 127-unit apartment building with retail space on the first floor. The two-story municipal center will accommodate about 50 village employees, firefighters, and police officers. It will also have a history space, a patio, and a meeting room.

As for the old village hall at 195 Sparks Ave., its future is still uncertain. Plans are in place to demolish the old firehouse and relocate the police department from the town hall. Across the street, the new residential development will offer 127 apartment units, including a mix of studios, one, two, and three-bedroom apartments. Six affordable units will be available for families earning 80% of the Area Median Income, and there will be 60 public parking spots. Residents can look forward to amenities like a gym, roof terrace, courtyard, co-working space, and fitness center, with construction expected to finish by 2027.

The developer, who received the property from the village in exchange for building the new municipal center, is excited about the project. Mayor Mullen noted that having two beautiful new buildings in the downtown area is a big plus, as it’s sure to boost foot traffic.

Joe Kohl Riggs, the principal at Hudson Companies, expressed enthusiasm for the village’s efforts to revitalize the downtown area and creatively tackle the housing crisis. His company has built around 8,000 residential units across New York, including a 203-unit project currently underway in Port Chester.

The project has also received a $15.8 million tax break through a 20-year Payment in Lieu of Tax (PILOT) agreement from the Westchester Industrial Development Agency, which is expected to generate $600,000 in tax revenue each year. Once the PILOT agreement ends, the developer will pay taxes based on an assessed value that’s about one-seventh of the current overall downtown value.

Pelham Village covers 0.8 square miles and has a population of around 7,300. The budget for 2023-24 is about $17 million.

Helu Wang covers real estate, economic growth, and development for The Journal News/lohud and USA Today Network. You can reach her at hwang@gannett.com.

This article originally appeared on Rockland/Westchester Journal News: Pelham NY municipal center opens as apartments loom across street.