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Poughkeepsie's old Wallace Department Store to become housing and retail center as city makes big moves on housing

Security guard Anthony Floyd says he is pleased to be working at the Wallace Campus development at the site of the old Wallace Department Store just off Main Street that closed in 1975.

Ben Nandy

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May 27, 2026, 5:03 PM

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A once-bustling — now crumbling — building in downtown Poughkeepsie is about to have a second run as a $147 million housing complex to serve people of all incomes and all backgrounds.

Security guard Anthony Floyd says he is pleased to be working at the Wallace Campus development at the site of the old Wallace Department Store just off Main Street that closed in 1975.

The 187-unit complex is going to have 69 units for people who make up to 80% of the area's median income and 30 units for people needing mental health support.

Floyd said someone in his family is always struggling to find an affordable rental unit.

"For a one-bedroom, it's crazy for the prices," he said. "We need something affordable, something for people to live off [of]."

It took eight years of planning just to make it to Wednesday's groundbreaking.

Developer Emanuel Kokinakis, of Mega Contracting, said that to make the project financially feasible he needed several state housing credits and grants plus historic tax credits since the building was originally built in 1870.

"This is the historic Wallace Department Store, so we're historically revitalizing it," Kokinakis said. "That's why you see some historic elements still remaining that will continue to be a part of the project."

Mayor Yvonne Flowers needed assurances. She had concerns about some of the people it would be serving: county residents who might be struggling with mental health issues.

Mayor Flowers has taken a hardline stance against homeless people loitering downtown who are discouraging visitors from returning.

Leaders of Mental Health America of Dutchess County said they assured the mayor that with the three social workers budgeted for the 30 residents is plenty to keep track of everyone.

MHA Dutchess County CEO Andrew O'Grady said a case load of 10 for one social worker is manageable - usually the ration is 50 to one.

"They're going to be well taken care of and well resourced," O'Grady said after the groundbreaking. "There should be no issues."

"Yes, there were some tense meetings, but we really saw eye-to-eye, and I have to say I really feel more comfortable with the project," said Mayor Flowers.

Kokinakis said that if the process runs smoothly going forward, residents will be moving into the complex by mid-2028.

Poughkeepsie officials say the Wallace Campus project is the perfect complement to their state-funded downtown revitalization plan, which is also being largely funded through a state grant.

That plan includes several housing complexes downtown and a grocery store.The city manager said developers are already lined up for many of those projects.

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