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WPCNR West Side Story. Special to The CitizeNetReporter from Don Hughes, James Benerofe. March 28, 2007 UPDATED 9:43 A.M. UPDATED WITH PLAN PIX 11:25 AM, UPDATED 12:53 PM: The Urban Renewal Agency designated LCOR as the designated developer of the city municipal commuter parking lot, and has been asked by LCOR to finance the project by floating as much as $230 Million in URA Revenue Bonds, though the decision to finance the project has not been made. The justification for justifying issuance of such bonds is to make the Bank Street a demonstration project to build more affordable housing than the present city requirement of 6% . The project, according to plans just received by WPCNR — would consist of two apartment complexes rising 29 stories to a height of 272 feet on the southend of Bank Street adjacent to the Metro-North Railroad. opposite the Mercedes-Benz dealership.
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 $230 Million Most Likely to be Financed by the White Plains Urban Renewal Agency. Photo, WPCNR News
LCOR is agreeing to pay the city $15.5 Million for the city municipal parking lot adjacent the present Bank Street Commons apartments (previously was, $16.5 Million). The agreement is conditional that the financing for the project should be in place by the end of the city’s fiscal year, June 30. This arrangement, it was said at the meeting was to provide $5 Million to help balance a shortfall in the city budget.
In other blockbuster action, The Urban Renewal Agency approved purchase of 4 Cromwell Place from the Legal Services of the Mid-Hudson Valley for $2.9 Million Wednesday afternoon which is to be financed by the city through bonds. The agreement acquires the final piece of land needed to execute the Sunrise Senior Living development, fronting on Maple Avenue and the parking garage for White Plains Hospital Center, that will be built behind the Sunrise facility.
Meanwhile at the corner of Maple & Cromwell…
In the Sunrise Senior Living/White Plains Hospital Center/Municipal garage project, the Urban Renewal Agency agreed that the city would purchase the Cromwell Place property with bonds for $2.9 Million.
The lot owned by the Legal Services of the Mid-Hudson Valley was a needed piece in order to fit in the new garage being built between Longview Avenue and Cromwell Place. That garage (six stories) would deliver 300 parking spaces to White Plains Hosptal Center and 300 municipal spaces, partially to be used by the Sunrise living center. The city plans to issue $17 Million in bonds to build that garage, of which White Plains Hospital Center would pay half the construction costs, plus they will rent 300 spaces from the 600 spaces in the garage from the city.
Perfect Timing.
Interestingly, the Legal Services people have said they will purchase the Cuddy and Feder building at 90 Maple Avenue across the street for about $2.9 Million to house themselves, thus possibly saving Cuddy and Feder the cost of commissions if they shopped the property on the open real estate market. Legal Services of the Mid-Hudson Valley essentially is able to engineer a building swap. Cuddy & Feder very recently moved into new offices in White Plains from 90 Maple and wish to sell the building.
It was made clear by city officials at the meeting that the city, once it had built the municipal garage for the Sunrise development and White Plains Hospital Center, the city would then be able to resell the former Legal Services Building or keep it for city use, because there would then be parking for the building, which would have to disappear while the garage was constructed.
LCOR ASKS Urban Renewal to Finance with $230M in Revenue Bonds if Needed
On the Bank Street matter, the Urban Renewal Agency for the second time in six months is considering acting as a lender (the first was to the Ginsburg Development Corporation on The Pinnacle affordable housing piece) and now, to LCOR if necessary.
In fact, LCOR has asked the Urban Renewal Agency to assist with the financing, according to an amendment issued at yesterday afternoon’s meeting, which reads:
The Agency has been requested to consider financing the
project thorough the issuance of tax exempt obligations in
amount expected not to exceed $230,000,000. Although the
actual issuance of such obligations is contingent upon future
actions of the City and the Agency, and others, and the Agency
has not committed to the issuance of such obligations, the
Agency expects that if such obligations are ultimately issued,
the proceeds would be used, in part, to reimburse expenses
incurred prior to their date of issuance.
According to Mr. Hughes, this amendment was put in at the request of the LCOR lawyers, in order that should the Urban Renewal Agency end up deciding to finance the project, expenses up to the period of the bonding would be able to be included in the bond.
No Bonds yet.
Susan Habel, Commissioner of Planning, who heads the White Plains Urban Renewal Agency, advises WPCNR that at this point the Urban Renewal Agency has not approved any bonds for this project: writing, ” I, along with Randy Mayer spent considerable time after yesterday’s meeting explaining to Keith Eddings and Don Hughes that the Agency DID NOT AUTHORIZE ANY BONDS FOR THIS PROJECT. The paragraph that was added to the resolution merely says that IF, after all approvals by the Agency and the Common Council the Agency were, in the future to decide to issue revenue bonds, the expenses incurred in developing the project at this stage could be considered bondable expenses of the project.”
In order to assure that LCOR has the financing in place within three months time, the Urban Renewal Agency, agreed to act in its capacity as industrial development agency, to float up to $230 million in revenue bonds, if needed to enable LCOR to finance the project. The bonds, it was said were only to be issued and be used if LCOR did not get the project bankrolled privately. Those bonds would be paid back by LCOR using the rents from the project. Presently, LCOR has no financing lined up for the twin building rental project.
The Bank Street Facade From Street Level
LCOR produced preliminary site plans for two 29- story apartment buildings occupied with residential units (with an extra story for mechanicals on the rooftops for a total of 30-stories (according to plans just received by WPCNR) rising to a hight 272 feet, with six stories of underground parking.
There would be a podium structure between the two buildings housing the parking with a swimming pool on the roof, similar in design to the Ritz-Carlton hotel going up on Main Street. There would be four retail units on the first floor of one tower, and business office use in the first floor of the second tower. Hotel previously proposed by the LCORs would be at the right (in gray). LCOR is still negotiating with hotel operators to put that together.
Striving for a big dent in the affordable housing demand List and repair the City Budget.
In exchange for being named the designated developer, LCOR agrees to “try” and make 20% or 107 to 109 of the 536 rental units affordable apartments. This is why the Urban Renewal Agency is calling this a demonstration project – to show you can make buildings work with a higher percentage of below market rate housing. The White Plains Planning Department has requested that the affordable units be made up of studios and 2 bedroom apartments. The studios would be approximately 20 feet by 30 feet, (600 sq feet) the 2 bedrooms apartments about 24 x 35 feet (843 sq. feet).
Cross Section of Typical Tower.
The city is in a hurry to push this deal through in order that the $15.5 Million payment for the municipal parking lot can find its way into this year’s budget to fill a $5 Million hole. Don Hughes quotes Paul Wood, the City Executive Officer as saying that was all that was needed of the $15.5 million, to mak up for this shortfall, made up in part by the failure of the city to collect on the original sale of the Railside properties, which was to bring in $2.9 Million.
WPCNR speculates that the other part of the short fall was the million dollars the city has had to spend to clean up the compost on the city landfill at the order of the Department of Environmental Conservation. How the $15.5 Million would be paid to the city has not been made clear.
The Common Council has gone along with this project. The council still has to approve the site plan. Rita Malmud was in attendance and also attended the executive session afterwards. Ms. Malmud noted that the language in the legislation referred to LCOR “trying to” build the 20% level of affordable units, instead of guaranteeing to build the units. But, this was apparently not resolved as to what would happen if the 20% were not obtainable.
On the matter of the hotel…
Peter Gilpatrick, LCOR principal addressing the gathering, according to both WPCNR correspondents said LCOR is negotiating with hotels and was looking at putting in an extended stay type of hotel there, not a luxury hotel, convention center, or ballroom/catering capability.
A Look Into the Future — City Moot on Key Questions.
WPCNR contacted city hall this morning to ask if the White Plains Urban Renewal Agency planned to execute more revenue bond financing in other areas of the city by declaring them urban renewal areas. WPCNR also asked City how much in fees the Agency would charge in floating the bonds on the market for LCOR. We also asked if a PILOT (Payment In Lieu of Taxes) was going to be cut for LCOR on the project.
WPCNR also asked if the payment for the land was actually only $10 Million, since the city had originally said the land was worth approximately $21 Million. In which case, in order to realize $15.5 Million as stated yesterday the city would have to pay for the 200 parking spaces now, not later.
City hall has not returned calls to answer these three questions.
