NEWS

Artsy Beacon a big lure, so rental prices going up

Mark Gerlach

Beacon is in the midst of a renaissance, having grown into an artistic hub of Dutchess County.

But can the city hold its rent and taxes low enough to keep attracting young professionals and artists? Or will the cost of living escalate to a level that's unaffordable for its art community, thus forcing them to find another up-and-coming destination to call home?

Rents in Beacon have gone up. A one bedroom apartment on Main Street was $750 per month in 2009. The same apartment today is $1,050, according to Peggy Rose, associate broker at Jon Car Realty. The ballooning rents are a result of high demand and few vacant apartments, Rose said. An influx of Brooklyn residents have transplanted to the city, she said.

When asked if rents will hit a point where they're out of reach for young professionals and artists, Rose replied: "I think we have a way to go before that happens."

Growing rents haven't deterred young people from moving into the neighborhood, however.

"The rent raising right now isn't currently a problem, but I don't know if that will change because the economy is always changing," Kayla Herbert, 24, of Beacon, wrote in a text message. Herbert moved to Beacon from Highland last June with her boyfriend, Dave, and their dog, Stella, because it's near a train station, their landlord allows dogs and the couple found an apartment that they "loved."

"Through gentrification, prices go up," City of Beacon Mayor Randy Casale said. One way to deflate costs is to build more apartments to keep prices competitive, Casale said. There are numerous construction projects in the pipeline to build apartments, condos and senior housing units in Beacon, he said.

The most notable project may be at the old electric blanket factory at 1 East Main St., dubbed Electric Windows, because artwork is displayed over its boarded-up windows. The vacant building will soon house 19 condos on its top three floors and commercial units on the ground level.

Some residents set up shop in Beacon before the boom because they saw potential in the city.

"Ten years ago it was a much rougher place," said Dan Frasco, 63, owner of Dickinson's Antiques in Beacon. Frasco bought the Main Street building, which includes four apartments upstairs, as an investment in 1995. At that time, the ceiling and floor of the now-antique store were collapsed, there was no electricity, several windows were broken and mounds of garbage flooded the storefront.

"Taxes are going way, way up. It's more expensive to do everything here," said Frasco. Beacon saw about a 4.8 percent tax increase in 2015 on non-homestead, or commercial properties. The increase for residential properties was less than 1 percent.

Dickinson lives in one of the building's apartments next door to a long-time tenant, and rents two apartments: a renovated one-bedroom with an office for $950 per month and a two-bedroom for $850, plus utilities.

Beacon wasn't a desirable destination when Ray Rabenda opened Sukhothai Restaurant, which serves Thai food on Main Street, about a decade ago. Rabenda said he and his wife, Chira, were unsure about opening the restaurant because the far end of Main Street where the restaurant is located was barren and several nearby buildings were boarded up.

"It was pretty unsightly," Rabenda said of the view from Sukhothai's front window several years ago.

The vision of former Beacon Mayor Clara Lou Gould is widely attributed as the catalyst for Beacon's rebirth. Gould served in office for more than 15 years. One thing Gould did as mayor was increase the number of code enforcement agents, which many point to as a driving force in the city's cleanup.

"The chief thing that we wanted to do was give people pride in the community," said Gould. The sprucing up of properties ultimately had a domino effect down Main Street.

Another driving force was the DIA: Beacon art gallery, which opened in 2003.

Mark Gerlach: 845-451-4509, mgerlach@poughkeepsiejournal.com, Twitter: @PoJoMarkGerlach