With demolition of the Pike Plan canopies in Uptown Kingston scheduled to begin later this month, the city is offering owners of 40 properties abutting the structure a settlement to offset the cost of restoring building façades once the canopies are down. But some Uptown property owners say they’re wary of the deal, which will require them to waive their right to sue for damages related to the demolition project.

Details of the settlement offer came to light in a federal lawsuit filed by William Gottlieb Real Estate in a last-ditch effort to halt the teardown of the wooden structures which were installed on portions of Wall and North Front streets in the 1970’s as part of a larger, never completed, urban renewal project. The canopies are bolted deeply into building façades they abut and their removal is expected to leave behind damaged masonry. In addition, on many properties the portion of the building above the canopies is painted a different color than that below and could require owners to repaint the entire façade for a uniform color scheme.

To compensate owners for any needed repair work, the city is offering standard compensation package that would offer them $1,000 per linear foot of frontage adjacent to the canopies. In exchange, owners would give up their right to take legal action to seek compensation for the damage. The formula is based on one used in 2024 when the city tore down the canopy in front of 300 Wall St., home of the LGBTQ Center of the Hudson Valley, after determining that the crumbling structure posed an imminent threat to public safety.

Hudson Valley LGBTQ+ Community Center Executive Director Richard Heyl de Ortiz said that the center had received $27,500 based on its frontage. The cost of restoring the façade, including repainting the entire building was $27,949. The center also had to go before the Historic Preservation and Landmarks Commission, which oversees building exteriors in the Stockade historic district, for approval of the new color scheme and to move a sign that previously hung from the canopy onto the façade.

“The process ended up working well for us,” said Heyl de Ortiz. “But every building is going to be different.”

One major difference between the LGBTQ center and the remaining Pike Plan property owners is that, because the teardown was done on an emergency basis, work was complete before the nonprofit had to decide whether to take the settlement or seek redress in court. Heyl de Ortiz said this allowed the nonprofit to assess the damage and estimate the cost of restoration in advance of making a decision. But according to the legal action filed by WGRE, other property owners must sign on to the agreement before demolition takes place.

Realtor, attorney and Pike Plan property owner Jon Hoyt told Kingston Wire that uncertainty was making some of his fellow property owners leery of taking the deal. In addition to accepting compensation without knowing if it would actually cover the cost of restoration, owners still remain unclear about what kind of vetting process their restoration efforts would have to go through with the building department and HPLC, processes that he said could add considerable time and expense to the work.

“Quite a few people are a little concerned that [the compensation offer] may not be adequate,” said Hoyt. “There are many aspects of this that go beyond simply hiring a mason to restore the façade of your building.”

Mayor Steve Noble did not respond to an email seeking additional information about the city’s compensation plan.