A $300 million construction project which will include housing, shops, restaurants, child-care and a state-of-the-art supermarket is underway in the Hudson Valley.

Developers have begun clearing the site of a former state psychiatric facility on Route 9 to make way for Hudson Heritage, a $300 million mixed-use community on 156 acres of land.

EFG/Saber Heritage SC, LLC announced on Thursday it has received site plan and subdivision approval to begin demolition of the former Hudson River State Hospital campus, which operated in the Town of Poughkeepsie from 1873 until its closure in the early 2000s.

“We are thrilled with the opportunity to transform this magnificent piece of land into a thriving, open-air community in which residents are within walking distance of top-notch restaurants, shopping, health care, education, entertainment, and beautiful nature trails – all the amenities they need to live, work and play,” Development Manager with EFG/Saber Heritage SC, LLC. Martin Berger said.

Once complete, Hudson Heritage is expected to be an intergenerational, walkable community with 750 units of townhomes, rental apartments and assisted-living housing.

The property will also feature a 150-room hotel and conference center; 350,000 square feet of commercial and retail space including shops, restaurants, child care and a fitness center; 40,000 square feet of urgent and primary care medical facility/office space; and a 24,700-square-foot education/performing arts center. The grounds will include walking trails and more than 60 acres of open parkland.

Officials also announced construction has begun on a ShopRite, which will be located inside Hudson Heritage. ShopRite plans to open a full-service, state-of-the-art supermarket later next year. The 64,000-square-foot store is expected to add more than 200 jobs, officials say.

“We are pleased to announce plans for our ShopRite of North Poughkeepsie, and look forward to providing local shoppers with the outstanding customer service, variety, value, low prices and convenient amenities that ShopRite is known for,” Brett Wing, president, ShopRite Supermarkets, Inc., which operates ShopRite stores in the Hudson Valley, Capital Region and New Jersey said. “We are especially proud to be part of this new and exciting development that is taking place at Hudson Heritage.”

The ShopRite of North Poughkeepsie is slated to open in late 2020. The store will feature an array of private-label, national brand and organic offerings, and 14 self-checkout lanes. It will also offer ShopRite from Home®, where customers order online and can pick up their groceries at the store or have them delivered.

“ShopRite is a perfect addition to our Hudson Heritage community,” said Berger. “It is known for its quality products and convenience, which fits right in with our vision to give residents and visitors everything they need in one convenient location.”

Once completed, Hudson Heritage is expected to create 700 permanent jobs and generate $2 million in annual fees to the town and $8 million in annual property taxes. Construction is expected to take three to six years.