Town OKs plans for 5-story hotel and Chase Manhattan Bank

A developer plans to begin construction next year on a five-story Hampton Inn & Suites in the Town of Poughkeepsie at the old Red Bull Inn site off Route 9.

The town planning board gave the project final approvals Thursday night.

The property has been vacant, and a bit of an eyesore, for years as plans for a new hotel have come and gone without anything being built.

Jim Friend is the head of New York City-based Friend Development Group, which is building the hotel. He said the Hampton will have 129 rooms, an indoor pool, fitness center and more.

He said rooms should rent for $115 to $200 per night. One third of the rooms will be suites.

Construction delayed

The company hoped to begin construction this year, but delays in gaining approval will push work back until 2006.

"Our best course of action is to get everything well-organized and get in the ground as early as we can next year," Friend said.

He said construction could take 10 to 12 months. The new hotel could be open by early 2007.

Planning board member Marvin Bennett said the site still faces an environmental cleanup because it was once home to a gas station. Once that work is done, Bennett said construction can begin.

Bennett said the hotel should improve the site.

"It really looks nice," Bennett said of architectural plans for the new hotel. "It should be a benefit to Route 9."

Friend said the hotel will cater to business people and leisure travelers who come to the area to enjoy its historical sites and other attractions.

The 2.9-acre Hampton property could also include a separate bank building.

Friend said his company is in negotiations with Chase Manhattan Bank to possibly bring a branch on the property.

The vacant Red Bull was razed several years ago after being a source of complaints from neighbors concerned about vagrants. Friend's previous proposal for the site called for a Hilton Garden with five stories and 144 rooms, but he later switched hotel brands for the project.

Friend said his market research shows the area is growing and needs hotels. He said he was attracted to the area after visiting the Hudson Valley.

Hampton has hotels in Fishkill and Newburgh and is part of the Hilton family of hotels. According to its Web site, Hampton has more than 1,300 hotels throughout the United States, Canada and Latin America.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.