WPCNR THE BUILDING NEWS. Special to WPCNR from White Plains CitizeNetReporter Correspondents. July 2, 2008: LCOR, the developers of 55 Bank Street, the 536-Unit residential “showcase” affordable housing project approved in May, 2007 by the Common Council announced to the council Wednesday afternoon they could not raise the $300 Million in one lump sum to finance the project in today’s financial conditions. 

Peter Gilpatric, center of photo, of LCOR, Shown April 12, 2007 when the Common Council was considering a PILOT on the 55 Bank Street property. (WPCNR News Archive)

 of LCOR and LCOR attorneys William Null and Robert Feder of Cuddy & Feder proposed instead a substantial redesign of the project to keep it alive. Trading two slender pillars for one long 28-story building running the entire block of the property  fronted by a short 14-story building and a different configuration for the parking garage. The project is a complete redesign, which Gilpatric hopes to get underway by mid-summer, 2009, financing forthcoming.

LCOR also proposed a two month delay in paying the $5 Million installment it owes on the commuter parking lot the city sold LCOR last spring to build the project on. LCOR has Lehman Brothers lined up for that payment if the Common Council and Urban Renewal Agency approve this "save" of the project.

We like White Plains!

Jim Benorofe told WPCNR that Mr. Gilpatric began the meeting with a statement that  said the company liked White Plains wanted to continue to do business here, and to build this project, but today’s financial markets prevented them from building the project originally planned because the entire project could not obtain $300 Million in financing. He said the project instead could be financed only in approximately $100 Million increments  if it were broken up into three steps.

To achieve this the Urban Renewal Agency and the Common Council would have to amend the site plan approval tying the start of each building contingent with securing financing for it.

The "design" consisting of a rough sketch was shown the Council. It  had LCOR building one diminutive tower of 14 stories ( the size of the Bar Building), fronting on Bank Street and a massive 28-story  wall of a building  a full block  in width  behind the 14-story structure. The 28-story building extends the width of the property closest to the Metro North railroad tracks. The third piece would be a parking garage for the project behind the 14 story tower.

Hotel to come?

The hotel proposed all along to be built on the present  5 Bank Street parking area is still planned for that location. Mr. Gilpatric said LCOR had a term sheet out to a hotel chain “with a substantial White Plains presence,” (possibly, WPCNR speculates Marriott or Starwood).

A very rough outline sketch of the project was passed around to the Common Council  to demonstrate the “save” of the project that is in very rudimentary design stage. WPCNR’s correspondents report

The councilmembers present: Benjamin Boykin, Glen Hockley, Rita Malmud, Dennis Power, and Thomas Roach were stunned to learn that LCOR had not paid the $5 Million due on the LCOR purchase of the city commuter parking lot. The city had sold the land to LCOR for $16 Million, with $6 Million paid last June and $5 Million due last Monday. The $6 Million last year balanced the city budget.

The LCOR representatives said that Lehman Brothers would lend LCOR the money for that payment and it would be paid to the city in September, if the city approved the new design and staggered financing.

Accrual Method Proposed to Prevent City Finishing in Red

 Mayor Joseph Delfino said the payment technically due Monday of this week and planned for in the 2007-2008 budget, would be booked as an “accrual” until September to avoid a deficit in the budget, if the Urban Renewal Agency adopted a rewording of the site plan approval allowing the buildings to begin construction  when financing is secured for each of the 4 buildings. This unusual request  will be taken up by the Urban Renewal Agency July 16.

Another request of the Common Council is that the $4.8 Million remaining on the payment for the commuter parking lot would not be due until the complex is completed, which Gilpatric anticipated would happen in 2012.

107 Units spread throughout

The 107 units of affordable housing owed the city on the project would be split between the 14 story building fronting on Bank Street and throughout the 28 story one block long building along the railroad tracks. No traffic patterns were shown, according to our correspondent. The retail component would also be included in the 14-story building.

The 107 units of affordable housing (rentable to earners making 60%, 80% and 100% of median income, $73,000) have been a key component of the development since the city granted it 15 years of tax abatements on the project as incentive to have LCOR build the project a year ago.

Mr. Gilpatric said, according to WPCNR’s observer that the company had spent $4 Million on the previous design and needed an indication from the council whether the redesign “concept” presented Wednesday afternoon was acceptable,  before proceeding  (spending millions more) on a more detailed design of his rough sketch. Gilpatric did not anticipate starting the project for about 14 months (mid-2009).Jim Benerofe told WPCNR the Council seemed agreeable to the  redesign to save the project.

One Project Left

Presently the LCOR project is the only project still viable in the city. Windsor Towers and The Boker Condominium project on Maple Avenue have both balked at paying the additional affordable housing "buyout fees" now owed by those projects thanks to new Common Council legislation passed in April 

The only Councilperson adamantly opposed was Councilperson Rita Malmud who accused LCOR of defaulting on the payment to which Mr. Gilpatric agreed. Ms. Malmud also complained that this was the first time she had heard of the default. The Mayor said he had first heard about it 8 days ago, then amended that to five days (last Thursday).

$29 Million Tax Abatements

At the time of the unanimous Council approval in May of 2007, total tax abatement on the project was

put at $29 Million over 18 years. The PILOT took the previous planned towers off the  

roles and assigns their assessment to the Westchester County IDA, which is not required to pay

property taxes on the assessment. It was not discussed last night how the PILOT arrangement would

be affected by the new deal. The PILOT approved by the Council was $486,000 a year in payments

going out 18 years.