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WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. August 28, 2009: The Common Council convened this evening to take up the possible hiring of Lamb & Barnosky for a fee of $108,000 a year as Labor Counsel for the city in among other matters the pending binding arbitration scheduled between the White Plains Firefighters and the city.
This binding arbitration process is likely, once begun, to set the potential pay raises for the other three major city unions, the Teamsters, CSEA, and White Plains Patrolmans Benevolent Association. The matter was tabled August 3 at the request of Councilman Thomas Roach who wanted time to interview the law firm.
The council, without explanation voted to retable the consideration of the hiring until September 24, delaying the start of the arbitration indefinitely. That is not to say that negotiations may not be taking place, since Firefighter union head, Joe Carrier told WPCNR three weeks ago that negotiations could take place even while arbitration is going on.
The woes of the heretofore successful White Plains affordable housing program were brought into perspective by Commissioner of Planning, Susan Habel, who cited the lack of credit-stable applicants for affordable units, many of whom need credit counseling and restructuring of debt.
It has been speculated on the White Plains Week television program that an arbitration settlement could create a major budget problem for White Plains, locking the city into increases as much as 3% across all four unions (costing the city $2.2 Million, and necessitating an 8% property tax increase alone), )which the city most likely could not afford without looking at the possibility of major layoffs in the unions. The city is currently staring at a budget deficit of about $9 Million by WPCNR estimates based on the continued 13% decline in retail sales in the city..
Cappelli Enterprises to Seek Co-ops, Condo, affordable housing outside downtown. Council Does Not Object.
In another matter, Susan Habel, Commissioner of Planning told the Common Council that two Avalon Bay two-bedroom apartments were available to fill out two of the 13 units developer Louis Cappelli owes the city, (to persons she said with incomes 80% of the median income) and that the city had two possible tenants for those two apartments.
Habel told the Council that the Cappelli organization is interviewing various other co-ops, condominiums and rentals elsewhere in the city outside the downtown area as possible affordable housing rental sites to persons whose income is 60% of the median income in the city. . She said that Bank Street Commons, the Gramercy, One City Place have all declined.
Affordable Housing Candidates Troubled with Low Credit Scores
Habel said that the city and the apartment complexes have had persons who qualify for the affordable housing stock, but who do not score a high enough credit score to be accepted by the building management. The score, she said sought is between 620 and 680. Many of the persons applying have severe credit record problems, she said.
Cappelli Enterpises: 13 months to build
Asked by Tom Roach when the Cappelli organization would build his other owed units on Main Street, Habel said he had until October 2010 to get them started. These units WPCNR believes are located on Main Street where Cappelli Enterprises was intending to build a 12-story building of affordable housing, but is in dispute with the city on whether the building qualifies as a “high-rise building,” which requires more expensive accommodations according to the city code.
Habel said thecity has 4 affordable units now left, and that studio apartments would be opening at Avalon Bay in the spring with the opening of that complex’s townhouses.
She said the city is no longer getting the amount of feeder referrals it was getting two years ago from corporations in the area, on the account of the current recession. The supply of persons interested in affordable housing units in White Plains is further aggravated by tightened credit requirements of the rental apartment complexes. Asked if affordable units would be rented at market rate, Habel said that the complexes were not allowed to do that, that the affordable units, once designated as affordable units had to remain empty and available.
Budget is not brought up
After those items were disposed of the Council went into Executive Session at 6:40 P.M. to look at tax certiorari settlements, the sale of land and an environmental litigation issue.
No one on the Common Council brought up any discussion of the city’s current budget situation which was aggravated when the July sales tax collections were announced last week as being $500,000 off 2008 pace—indicating the fiscal year has begun with retail sales lagging behind 12.5%.
Should that continue the city would be facing a $6 Million shortfall in the expected collections in sales tax for2009-10. at the current spending pace.
WPCNR pointed out last week that the city has budgeted $47.3 Million in sales tax in 2009-10, has 400,000 square feet of retail space vacant, and should retail sales continue as they are – off 12.5% — that would only generate $41.3 Million in sales tax, not $47.3 Million, creating a $6 Million budget gap.
Meeting that gap at the end of the year, would wipe out the city fund balance and require, given a 3% union increase, an additional $2.2 Million in wages, and possible pension fund increases of millions more, the budget for 2010-11 is in serious condition already.
Yet, no one on the council brought the state of the budget up either before, or during the meeting.