The impending sale of Butterfield Memorial Hospital

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What to do, what to do.

Butterfield hospital sale has residents talking

By BARBARA LIVINGSTON NACKMAN

THE JOURNAL NEWS

(Original publication: September 1, 2007)

COLD SPRING - The impending sale of Butterfield Memorial Hospital has not quelled local talk of what should happen to the long-shuttered medical center, but rather has stirred further discussions.

Last week, Hudson Valley Hospital Center announced it had agreed to sell Julia L. Butterfield Memorial Hospital on Paulding Avenue, closed in 1995, to Unicorn Contracting, a private developer with an office in Garrison.

Physicians' offices and a trio of outpatient services - radiology, physical therapy and a laboratory - from the Cortlandt hospital will continue in an adjacent building through a long-term lease.

Gazing at the vacant brick hospital building Monday, Barbara Perkins, 68, said she was "shocked" to hear about the sale.

"Surprised is not the right word," said the artist and retired substance-abuse counselor who lives across the street in the Chestnut Ridge senior apartments. "After all they've tried to do and all the years of talk, I can't believe this. It doesn't have to be a hospital, per se, but it should be something for health needs."

She said she uses physical therapy services and sees doctors at the adjacent Carolyn Lahey Pavilion, which is part of the sale and is expected to continue.

"It's a package. If one part is changing, there is no way of telling what could happen to other parts," she said.

Some, though, view the sale as moving beyond local squabbling.

Caryn Cannova, who owns Paynings by Caryn on Main Street, also lives near Butterfield.

She said the building needs obvious repairs and it doesn't make sense to have a small medical center that isn't top-notch.

"In this day and age you want quality care even for small stuff," said Cannova, the mother of a 2-year-old. "Doctors' offices, services are fine, but when you are talking about a hospital you don't want anything small or partway."

She said, for instance, that if someone has chest pain, one doesn't know if it is heartburn or a heart attack, and people want a major facility just in case.

"I'd drive 15 minutes to St. Luke's Hospital (in Newburgh) in an emergency," she said.

Putnam County Legislator Vincent Tamagna said officials should "make the best of the situation."

"Paul Guillaro has a great track record in the village," he said, referring to Unicorn's owner. "I am sure he will listen to our needs as a community and we will reach out to him."

Unicorn is building townhouses at a former lumberyard in Cold Spring, and a house near the Garrison train station. In the mid-1990s, the developer built 29 homes on the former Peekskill farm owned by the family of ex-Gov. George Pataki, who lives in Garrison. Legal battles ensued over site work and ownership of two parcels, but were resolved.

County Executive Robert Bondi feels burned by the sale. Four years ago, he proposed that the county buy the 40,000-square-foot center for $1.2 million.

Hudson Valley wanted to sell the old building but maintain the right of first refusal to operate any medical services there. That stipulation became a sticking point for county lawmakers, who wanted no strings attached to the sale. The deal fell apart in April 2003.

"We did not receive any positive response to negotiations," Bondi said. "We were rebuffed. We have tried very hard, and I know there is more we could have done. I am deeply saddened we didn't succeed."

It was unclear whether a similar restriction is part of the contract with Unicorn.

Mark Webster, a Hudson Valley vice president, said the hospital received fewer than 10 bids, but nothing from Putnam County.

"We would like to continue many services and activities in Cold Spring," Webster said. "We have every intention of being there for many years to come."

A woman at Unicorn's office said Guillaro was away until next week.

The Butterfield property is in a medical and health care facility district. Permitted uses include homes, hospitals or sanitariums, nursing homes or other health-related facilities, as well as senior citizen housing.

The former hospital was created by a trust from local philanthropist Julia Butterfield, whose will requires that the site remain a medical center for the community. In 1995, with approval from the state Department of Health, Hudson Valley closed the hospital, citing a dire financial situation.

Butterfield history

1913: Julia Butterfield of Cold Spring dies, leaving a $150,000 endowment to build a hospital.

1925: Julia L. Butterfield Memorial Hospital opens.

1984: A merger with Vassar Brothers Hospital in Poughkeepsie falls through.

1993: Hudson Valley enters into management agreement with Butterfield hospital.

1995: Butterfield shuts down its 36-bed hospital because of too few patients and continued financial losses.

2000: Savoy Senior Housing of Manhattan proposes a $20 million senior citizen housing project on the site.

Aug. 23: Hudson Valley signs contract to sell Butterfield to Unicorn Contracting.