RHINEBECK, N.Y. — The community with just three stoplights is often referred to as bucolic by those who live outside its borders in more suburban locations.
While the Town of Rhinebeck and the Village of Rhinebeck are sometimes lumped into the same category, locals know they are regulated and legislated by two separate governments.
These days, the Rhinebeck Area Chamber of Commerce seems to be caught squarely in the middle between local government and the future of growth.
All sides of Rhinebeck have reached a critical intersection. Tensions between local leadership and the business community have erupted over a proposed local law that would temporarily halt new hospitality and agritourism developments for nine to 27 months.
Two separate meetings in August may show how much growth is a “third rail” issue evoking emotions and entrenched attitudes about the future of the entire community.
The proposed land-use pause comes amid a surge in luxury resort proposals across Northern Dutchess County, raising sharp questions about how much commercial growth the rural community can absorb.
In response to the potentially-restrictive draft legislation, the Rhinebeck Area Chamber of Commerce has scheduled an independent community forum and panel discussion for Tuesday, Aug. 4, at the Rhinebeck High School Auditorium 45 North Park Road in Rhinebeck. It will run from 5:30-7 p.m.
Titled “What is the Future of Our Local Economy?”, the event will feature third-party land-use experts to examine the economic ramifications of a development freeze.
The Chamber’s gathering precedes an official Town Board public hearing set for Tuesday, Aug. 18, where municipal officials will gather formal public commentary before taking a vote on the landscape of future growth that impacts many with strong opinions and business plans.
The public hearing is scheduled for: 6:00 p.m. at the Rhinebeck Town Hall, 80 East Market Street, Rhinebeck, NY 12572
The upcoming events have highlighted procedural friction and a lack of direct communication between municipal officials and business leaders.
Town Supervisor Elizabeth Spinzia, a Democrat, confirmed that town officials and their technical advisers were not invited to participate in the Chamber’s Aug. 4 panel.
“The Rhinebeck Area Chamber of Commerce has neither extended an invitation to the Town Board nor any of our professional consultants to attend or speak at the August 4th event,” Spinzia said.
Defending the draft legislation as a necessary planning step, Spinzia emphasized that a moratorium is a temporary stop while zoning codes and infrastructure are evaluated.
“Tourism is important to our local economic engine, but it must not come at the expense of the welfare of our Town and its residents,” Spinzia added, noting that the board will evaluate all written and oral commentary submitted on or before the Aug. 18 hearing.
Chamber leaders, however, stated the forum was deliberately structured to showcase neutral, outside experts rather than local stakeholders or municipal officials.
“This forum was never intended to include representatives from the town or the Chamber — in fact, no one from the Rhinebeck business community is on the panel either,” Rhinebeck Area
There has been friction between business leaders and town’s elected officials for many months. Sometimes, the spats became public with social media posts or sharply-worded letters sent back and forth.
“The town did not consult the business community about the potential impact of this moratorium before proposing it, which has left many of us scrambling to understand what a 9-to-27-month pause on any new hospitality business would actually mean on the ground,” said Rhinebeck Area Chamber of Commerce Director Liana Galardi.
Regional Growth and Development Pipeline
Decades of being a regional tourism draw have crested as a surge of new and proposed overnight accommodations attempts to play catch-up after years of limited lodging in Northern Dutchess County:
Mirbeau Inn & Spa: Opened in the Village in 2019 with 49 guest rooms.
Soho House at Grasmere Estate: The Town of Rhinebeck gave the green light to the global resort brand to build 48 bedrooms and cabins along with a spa on the historic estate. The site can have a maximum buildout of up to 125 rooms.
The Rhinebeck Villas: A proposed 60-room hotel complex.
Six Senses Hudson Valley: A proposed 65-guest room resort featuring standalone cottages in nearby Clinton. The site can have up to 240 attendees or guests on site.
High-Profile Projects Outside the Moratorium
Despite the broad scope of the proposed development pause, two high-profile, multi-acre properties in Rhinebeck remain outside the moratorium’s reach:
Grasmere Estate / Soho House: Development plans to establish an upstate retreat for Soho House will proceed as scheduled.
Because initial land-use filings and site plan applications were formally submitted before the draft moratorium was introduced, the luxury hospitality project is legally grandfathered under existing zoning.
Linwood Spiritual Center: The 51-acre retreat property overlooking the Hudson River faced potential commercial redevelopment after its owners, the Sisters of St. Ursula, put the parcel up for sale. After the order rejected purchase offers from private developers, town leadership shifted course to evaluate municipal options to acquire the waterfront acreage and convert it into a public park.
Policy Friction and Previous Disputes
The friction between town leadership and the business community centers on a broader pattern of governance decisions regarding revenue, land use, and regional development.
Proposed Occupancy Tax: The town sought to enact a 3 percent bed tax on local lodging to direct revenue toward its general fund.
The Chamber strongly opposed the effort, pointing out a geographic disconnect: the vast majority of commercial lodging facilities and overnight beds reside within the incorporated
Village of Rhinebeck rather than the town proper.
Inter-Municipal Resort Litigation.
The town expended just under $10,000 in taxpayer funds on an Article 78 lawsuit aimed at blocking the proposed Six Senses luxury resort in the neighboring Town of Clinton.
Courts ultimately dismissed Rhinebeck’s action, ruling the town lacked legal standing to challenge an adjacent municipality’s zoning, environmental, and land-use approvals.
Spinzia confirmed the town is no longer pursuing any legal action against The Sixth Senses Hudson Valley. That is likely to be a relief to taxpayers who questioned the town’s legal standing in another municipalities land-use.
Rhinebeck has been a destination for those seeking a day away from more populated areas of the tri-state area. The Dutchess County Fairgrounds is a big summer and fall draw. Tourism officials have often said that there are not enough beds in northern Dutchess County.
No doubt the Rhinebeck Area Chamber of Commerce has valid concerns about ensuring that tourism related businesses and properties are welcome to grow here. The Town of Rhinebeck also has a responsibility to oversee growth as it impacts roads, infrastructure and quality of life.
Hopefully, the community with three traffic lights will be able to listen to all sides and perspectives without causing gridlock for businesses and future growth.
Think Dutchess Alliance for Business
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