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WPCNR QUILL & EYESHADE. By John F. Bailey. April 17, 2007: Paul Wood and Chief Financial Officer Gina Cuneo-Harwood announced exclusively to The CitizeNetReporter Tuesday evening that agreement has been reached in principle with LCOR on the procedure LCOR would follow in purchasing the city municipal parking lot for $15.5 Million.
Purchase of the lot is the first step in building a pair of apartment towers, which would include 107 affordable housing apartments in the 500-unit mix of retail, office and rental apartments LCOR plans to put on the site. Last week, in a surprise request LCOR, (which originally said in discussing possibility of city financing of the project they would not need a PILOT), requested a $300,000-plus Payment In Lieu of Taxes payment going out twenty years on the project. However, details were not provided at the work session. Councilperson Rita Malmud said she wanted a careful look at the PILOT arrangement.

Peter Gilpatric of LCOR, shown last Thursday evening, asking for a $300,000-plus PILOT on his 500-unit, double tower apartment, retail complex featuring 107 affordable apartments project. Yesterday the city announced the terms of payment for the commuter lot on Bank Street where the project would be built. Photo, WPCNR News
Wood told WPCNR that $8 Million of the purchase price would be paid this year (by June 30), and $7 Million would be paid next year. The $8 Million in cash, Wood said would go into the current 2006-2007 city budget.
WPCNR notes the windfall could have the effect of replenishing the $7.75 Million appropriation from fund balance in the current budget, and replacing any cash not received from land sales on Railside Avenue, the proceeds of which have been reported by the city to have not been fully collected.
WPCNR did not ask whether interest would be paid on the $7 Million payment delayed until the 2007-2008 budget year. Originally the commuter parking lot was valued,
No PILOT NO PROJECT.
Wood has reported the land previously, as appraised at $20.5 Million, and the price LCOR was asked to pay was lowered to $15.5 Million to pay back LCOR for the building of parking spaces to replace spaces lost by building the new complex on the commuter lot. LCOR came in last Thursday requesting a PILOT (Payment in Lieu of Taxes) of $300,000 plus a year on the project for the first 12 years of the project, the PILOT beginning after the apartments are built. Wood said last week that LCOR would be paying the city $200,000 a year via a lease for the parking spaces used for the commuting public after the new Bank Street towers open.

The Bank Street Job
2 Buildings Built on city Commuter Parking Lot, 29 Stories each, 272 feet tall, 536 Apartment Rentals, 109 “below market,”costing $260 Million Most Likely to be Financed by the White Plains Urban Renewal Agency.
Without the PILOT, Peter Gilpatric said LCOR could not build the project. Previously, in gaining approval of the council for the land sale and the change of use for the lot, Mr. Gilpatric had said LCOR would not need to request a PILOT on the project. Gilpatric reported last week that LCOR wanted the city to either apply for a Section 41A Home Rule approval from the state legislature, enabling LCOR to receive additional Industrial Development Agency sales tax breaks and to be able to finance the new LCOR project with Urban Renewal Agency issued Revenue Bonds. The project is estimated by Gilpatric to cost $260 Million.
The city is attempting to build what is called an 80-20 project (20% affordable units). LCOR also said they were requesting city financing of the project. The city is planning to ask for approval of home rule legislation from the state legislaturd approving city financing of the project under the Section 421A real estate law and enable the city to issue bonds through their Urban Renewal Agency to finance the project, that would be paid by LCOR. The $300,000 PILOT figure requested is based on appraisal of the commuter parking lot at the time of sale, and not on the apartments and retail to be built there.
The price of an “affordable studio unit” was estimated at $1,500 a month.
Sales Tax Up Handsomely. Officials Do Not Remember Figure.
Another piece of news from last night’s budget presentation was that, according to Gina Cuneo-Harwood the sales tax for January-February-March period revenue is up from last year, she estimated about 7% but could not remember the exact figure.
Last year the city collected $11,327,529 in the Third Quarter (Jan-Feb-March) which would put the current figure up 7% at a little over $12 Million which would make it the fourth consecutive year of increases in Third Quarter sales tax receipts – up from a low of $8.8 Million in 2002-2003, before the City Center opened. However half of that 7% is attributable to inflation year-to-year, which the state calculates as having been 3.84%, which would make the real increase a little over 3%
It is notable that in the official sales tax growth chart displayed at last evening’s presentation to the Council (the nightcap of the Common Council Twilight-Night Doubleheader meeting last night), inflation accounts for much of the gain.
Inflation Erosion.
In 1997-98, the city collected $29.9 Million in Sales Tax. In 2006-2007, the city is on a pace (buttressed by Harwood’s report that third quarter sales tax collections were up) to hit $43 Million in Sales Tax a decade later. Inflation over that period of time has been 23% according to Infationdata.com. $29.9 Million then would be worth $36.5 Million now. In that context the $13 Million growth is really $6.5 Million in growth, adjusted for inflation since the end of 2002-2003 when the city rung up $34.4 Million in Sales Tax.
In the time since the City Center opened in fall 2003 and the Renaissance “officially” began in fall 2003, the city has increased sales tax collections $8.5 Million from $34.4 Million in 2003 to $43 million. Of that the original $34.4 million has inflated to a value of $37.4 Million today….which makes the real growth in sales tax dollars just $5.5 Million in the four years of “The Official Renaissance.” About $1.3 Million a year in real revenue from all of the development opened since 2003.
Sales Tax for First Quarter 2006-2008 was $10M; Second Quarter, $11.9, and third Quarter estimated at 7% is about $12.2. We await the hard figure from city finance. This translates to about $43.5 Million in sales tax to be collected in 2006-2007. The Final Quarter in 2005-2006 brought White Plains $9.4 Million in sales taxes last year.