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WPCNR CITY HALL CIRCUIT. By John F. Bailey. August 11, 2006 UPDATED 6:00 P.M. E.D.T.: As reported earlier this week by WPCNR, in an historic Urban Renewal Agency meeting Friday morning at 9, the Urban Renewal Agency approved by a 3-0 vote (Mayor Joseph Delfino, Russell Smith and Dan Moriarity, voting for, and a fourth member on vacation Norm Bichiara, on vacation received a briefing and giving it his blessing, according to Paul Wood), a series of resolutions that will make the City of White Plains Urban Renewal Agency an official developer of affordable housing in the city, and establishing a method where the city can act as its own Industrial Development Agency, said Paul Wood, City Executive Officer this afternoon.

Paul Wood, architect of the White Plains “Miracle IDA” created Friday morning, (Wood is shown in January, 2005). Wood noted the Urban Renewal Agency and Municipal Law statutes which lead to the Urban Renewal “IDA Coup” executed this morning. He said Corporation Counsel Edward Dunphy and bond counsel, Randy Mayer crafted the legislation and Susan Habel, Commissioner of Planning assisted. Photo, WPCNR News Archive.
Wood said the legislation brings the Urban Renewal Agency $969,000 in fees (Legal fees, Letters of Credit Fees, Underwriter fee, Bond Counsel, Borrower’s Counsel, etc), the Westchester County Industrial Development Agency would have received if they had moved more quickly in approving Ginsburg Development request for funding for the affordable housing portion of the Ginsburg project.
He said these fees would go into the Urban Renewal Agency “coffers,” as he put it, to be used possibly for more affordable housing projects, but that the use of the windfall had not been determined yet.
“It’s a new day that’s dawned in White Plains,” Wood said in a telephone interview from City Hall Friday afternoon. “We can finally control our own destiny rather than have it rest in another agency’s hands.”
West Side Affordable Housing Tool?
Asked if Wood saw the new Urban Renewal Agency “IDA Tool” being used in other parts of the city, such as the West Side (Lexington Avenue and Post Road), Wood said, “Possibly, yes, we’re going to use it wherever we can. The plan can be amended so it can go (be used) just about anywhere it meets the conditions in corporated in the Urban Renewal Plan.”
He noted the $969,100 could be used in the East Post Road Lexington Avenue “Renaissance” next up on the Mayor’s Revitalization plan.
The resulutions make use of municipal law allowing Urban Renewal Agencies to create “Demonstration Projects” as models to develop “blighted” areas. The city’s first “Demonstration Project” will be the 52 units of affordable housing on Main Street, which according to William Null’s description of the proposal provided to WPCNR will cost over $17 Million.

$17.6 Million Pinnacle Affordable Housing, foreground, (left), with The Pinnacle (previously 23 stories in background, recently approved to go to 28 stories) showcased January, 2006. Photo, WPCNR News Archive.
This Friday morning, the White Plains Urban Renewal Agency approved a proposal from Ginsburg Development Corporation and its partner Ridgemour Properties for the Agency to purchase 260 Main Street and designate Martin Ginsburg as its developer, after one hour of deliberation.
As part of the complex arrangement, the Agency approved a no-bid contract with the Ginsburg and Ridgemour Property concerns. In the arrangement the Urban Renewal Agency has approved issue bonds in the amount of $8,600,020 or half the cost of the units, $17,614,324. A letter from the Pinnacle attorney, William Null states the cost of the 52 units of affordable housing at $338,737 per unit, and the city is expected to bond for $165,385 of each unit.
$331,820 in Tax Savings. $780,000 PILOT.
The city bonds are expected to be paid by Pinnacle through rentals and sale of tax credits, (which will be sought, WPCNR believes through the New York State Housing Authority). Tax credits issued by the NYSHA historically have made profits for developers, more than paying their costs of building the affordable housing.
At some point the city is expected to sell the affordable housing project back to Pinnacle to manage after it is completed.
Of the $16,936,867 cost of the project, the developer (Ginsburg Development Corporation) will be paid $2,540,530, the Urban Renewal Agency, $969,100 in fees; construction costs are estimated at $9,625,875, Soft Costs (Appraisals, insurances, mrketing, leasing, security) are pegged at $649,862, Price of land, $2,500,000, Constingency fees, $101,360.
Tax Benefits to Pinnacle according to Resolution 17, page 12, are savings of $220,020 in sales and use taxes for 2 years. A PILOT of $52,000 annually for 15 years, ($780,000) and waiving of the mortgage recording tax of $111,800.
The Sequence
Wood detailed the sequence: “It’s a pass through. It’s a simple transaction. We buy the property from Ginsburg for $10, we turn around and lease it back to them. After that, the property has to be declared tax exempt. Because it’s tax exempt, we can then go ahead and issue tax-exempt bonds on the open market. The bondholders do the financing. There’s no risk at all for the city Urban Renewal Agency receives 1/2% of the cost of the bond (while the County IDA would have received 1%), and the bondholder receives about 1 to 2 points hire than the city points. It’s a similar arrangement to what we had in the City Center garage. Any profit will be poured back into paying off the bonds, so the bonds could expire in 15 years, 10 years, depending how successful they are. The city and the Urban Renewal Agency are completely without liability in this transaction. There’s no way anything can refer back to us.”
Wood said that principal and interest on the bonds would be paid first, and any profit over the cost charged by the managing agency, Community Housing Innovations, partner with The Ginsburg Development Corporation, would be plowed back into the bonds. Community Housing Innovations currently is building affordable housing with the city at Minerva Place.
“The only ones who can get hurt here are the bondholders,” Wood said, “The bonds are also additionally being backed by a major bank. Ginsburg has a completion bond, which if for some reason he does not build the project, another company will be paid to finish it. There are protections on every side of it. We don’t try and push things through to hurt people. The whole thing isthe city’s going to realize the $969,000 that we wouldn’t have otherwise had, and we broke away, liberated ourselves from the IDA. “
Timetable
Now that the Urban Renewal Agency has approved the plan, the Common Council will have to approve the historic step into affordable housing by White Plains by approving awarding a no-competitive bid contract to Ginsburg Development, and the amended urban renewal plan. The Council will take this up on August 24, Wood said.The Planning Board will meet Tuesday to hear the approved plan, according to Paul Wood, City Executive Officer.
Asked if he expected a challenge from Westchester County on the city legal ability to act as its own IDA through the Urban Renewal Agency, Wood said, ‘I think they’d be foolish to do so. Are they (the county) against affordable housing?”
Council Informed?
WPCNR, since no councilperson called by WPCNR has returned calls on their reactions and endorsement of the Urban Renewal Agency legislation, asked Wood “The council was aware of all the particulars of this deal before Monday?”
“Yes, well, no,” Wood said, “They were aware this was a mechanism we were going to try to employ. We had a rough idea of how it would work, but you know, you get attorneys involved and there’s the legal mechanizations to accomplish something like this can be mind-numbing. Really, the details were probably not hammered out until Wednesday. But each of the councilpeople I’ve spoken to personally and explained what the process was, except for Councilman Ben Boykin and Dennis Power.”
Wood said the council was briefed about a month ago on the problems Ginsburg was having on the county IDA picking up the affordable housing request. He said, the city had thought about going to the Empire State Development Corporation, but discarded that idea at which point the city looked at the Urban Renewal Agency possibilities. The County IDA has issued Ginsburg $47 Million in financing on the Pinnacle retail and garage portion of the project.
Councilman Benjamin Boykin though did not mention any inkling of the “Miracle IDA” plan approved today when he expressed worry the Pinnacle Affordable Housing piece was being delayed at Monday evening’s Common Council meeting.
Wood said the Urban Renewal Agency members received a partial delivery of the legislation they were to vote on Wednesday evening and the balance Thursday evening (last night), prior to the Friday morning vote. Councilpersons received their packets on the project Thursday, Wood said, their first detailed look at the landmark legislation.










