Shandaken took its first formal step Monday toward redeveloping the shuttered Phoenicia Elementary School into a mixed affordable and market-rate housing project that could include community space.
The Town Board voted 4-0 to authorize Supervisor Barbara Mansfield to sign a memorandum of understanding with RUPCO, a Kingston-based nonprofit developer. The agreement allows RUPCO to begin evaluating the property and gathering information needed to shape a potential redevelopment plan if the site becomes available.
The vote does not transfer ownership of the property or approve a final project.
“This is not an immediate thing,” Mansfield said. “It is just an understanding that RUPCO is willing to work with us. We still have a lot of hurdles to go to to make anything happen there.”
The building and its grounds are owned by the Onteora Central School District, which closed the school in 2024. The district has not declared the property surplus and retains discretion over its future use, according to the board’s resolution.
Under state law, any conveyance of the property would require approval through a mandatory referendum of qualified school district voters.
Town officials have been discussing the school’s future with district leaders for years. The board previously evaluated potential municipal uses for the property, including converting it into a municipal center, but determined that option “would not represent the highest and best public use of the site,” according to the resolution.
During the town’s ongoing comprehensive planning process, residents consistently expressed support for redeveloping the site primarily as affordable housing, with the possibility of community-serving space.
Housing has emerged as a central issue as Shandaken officials work toward completing a final draft of the town’s comprehensive plan, which has been in development for several years and is expected to be finished this spring. One of the plan’s top priorities is expanding housing options for workers, seniors and families, Mansfield said.
Ulster County Legislator Kathy Nolan, whose District 22 includes Shandaken, spoke during Monday’s public comment session in support of the preliminary agreement with RUPCO. She thanked the Onteora school board for years of discussions with town and county officials about the site.
“There is, as the resolution suggests, very strong support for affordable housing at that site, and I’d be delighted to continue working with the town to help make that happen,” Nolan said.
Nolan said she and a previous legislator from Woodstock, John Heppner, had established regular meetings with the school district following the school’s closure. Those discussions have continued with current Woodstock legislator Jeff Collins, she said, and the Ulster County Planning Department has also been involved in planning efforts. Nolan also credited former Shandaken Supervisor Peter DeScalfani for participating in meetings and touring the property.
Deputy Supervisor Robert Drake said the agreement with RUPCO will allow the developer to move forward with more detailed site analysis.
RUPCO plans to visit the property with an architect, civil engineer and possibly a septic specialist to begin shaping an initial development concept, Drake said. One of the key questions is whether a septic system could be located on the site, possibly near the existing ballfield, though that has not yet been determined.
“It’s basically some data gathering before assembling a development plan,” Drake said.
While some preliminary work has already taken place, Drake said the memorandum of understanding makes it more likely RUPCO will invest in assembling a development concept that the Town Board could eventually review and consider adopting.
Meanwhile, the town will begin examining whether Shandaken’s zoning code can accommodate a project of this scale.
“We’ve got to start figuring out how to best change zoning code to accommodate a project that is likely outside of anything our current code accommodates,” Drake said.
Town officials may ultimately consider creating a “floating zone,” a zoning tool that allows a set of development standards to be applied to a qualifying parcel rather than mapping a new zoning district in advance.
As an example, Drake described how a floating district could be used to permit certain types of housing on parcels that meet specific criteria, such as acreage or infrastructure access. The former school site would not be limited to senior housing, he said.
Local officials have repeatedly cited housing shortages as a constraint on the town’s workforce, emergency services and community stability, as housing costs across the Catskills have increased in recent years.
“We still have a lot of hurdles,” Mansfield said.
Noah Eckstein is the editor-in-chief of The Overlook. Send correspondence to noah@theoverlooknews.com.