Photograph of the Day

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WPCNR DOWN MEMORY LANE. August 2, 2008: The vintage menu from Woolworth’s which used to be on Mamaroneck Avenue in White Plains, brings back memories of formica countertops, waitresses with starched uniforms and sneakers, who always greeted you with a “What’ll ya have, hun?” And you could have lunch for under a dollar $1. Today it costs $15. Those were the days! Thanks to a WPCNR reader for passing this gem on.


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Assemblyperson Paulin Prefers Circuit Breaker Bill to Property Tax Cap.

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WPCNR CAMPAIGN 2008. July 31, 2008: In response to WPCNR’s invitation to clarify her position on the Governor’s property tax cap proposal, Assemblywoman Amy Paulin of the 88th Assembly District  released a statement to WPCNR late this afternoon, saying she opposes the property tax cap and supports a circuit breaker bill she has sponsored, instead. Her exclusive statement to WPNCR:


Paulin on her Circuit Breaker Bill.


Reducing the tax burden on property owners is a very high priority. At  this time, I believe the Circuit Breaker bill, of which I am a  co-sponsor (A.01575B) is a better approach to take to mitigate the burden of high property taxes. Currently, my school districts get between 5% to18% of their aid from the state. If the state would assume a higher burden such as some of the high fixed costs such as healthcare and pension contributions, and reduce the number of state mandates, then I could support a tax cap proposal. 


Right now, if we imposed a cap, school districts would be forced to fire teachers, increase class size, eliminate courses and cut back on technology and other resource materials.  In all honesty, I cannot support such a bill  unless the state takes some of the financial burden off the school districts.


Westchester school districts deserve to have our best thinking on this very important issue.   

As far as cuts to the current budget I am waiting to see what the
governor proposes.

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City has best 4th Quarter Ever—Economy in WP is Doing Well: Harwood.

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WPCNR QUILL & EYESHADE. By John F. Bailey. July 31, 2008: City Commissioner of Finance, Gina Harwood reported today that White Plains collected $11,485, 331 in sales tax receipts for  April, May and June of 2008, wrapping up the 07-08 fiscal year with a total sales tax “handle” of $45,462,389 — $62,000 over Ms. Harwood’s forecast 16 months ago.


 



Gina Harwood, City Commissioner of Finance: On the Money.


 


 



Harwood said it was the strongest 4th quarter White Plains has ever had. She described the White Plains economy as “doing well, we’re holding.” She said she expected that the additional ¼% of the city sales tax which begun being collected July 1 would add $1.4 Million to the first quarter figures now being generated, putting the city on target for a $50,000,000 sales tax year. The 08-09 budget calls for $45.4 Million in sales tax for the year.


Harwood is optimistic, but wary: “People in Westchester County are staying here and spending money. Walmart is doing well. Target is strong. More people are in the Ritz.” She also allowed as the increased gasoline taxes contributed to the fourth quarter surge which was only $356 less than the holiday quarter of October, November, December.


The numbers, released by the city Department of Finance today:


Sales Tax Receipts 2007-2008 Fiscal Year


July-August-September 2007:  $10,917,807


Oct-November-December 2007: $11,841,285


Jan-February-March 2008: $11,217,966


April-May-June 2008: $11,485,331


Total: $45,462,389

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Pilla Urges Paulin to Step Up. Paulin Refuses to Play Politics

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WPCNR CAMPAIGN 2008.  July 31, 2008.  Incumbent Assemblyperson Amy Paulin of the 88th District today responded to her opponent for the 88th Assembly District seat, White Plains Anthony Pilla’s news release today accusing Ms. Paulin of  having “rejected what 74% of New Yorkers want (a property tax cap proposed by Governor David Patterson).”



Assemblywoman Amy Paulin of the 88th


Ms. Paulin released this statement when WPCNR asked her if she supported the Governor’s property tax cap in principle and the Governor’s call to cut the current 2008-09 budget now:  


“In response to your call, I feel it is inappropriate to play politics with such a serious matter.  I will continue to be an independent voice fighting for the people I represent as our economy weakens.”


WPCNR has given Ms. Paulin an opportunity to make a more detailed statement on where she stands on the Governor’s  property tax cap and whether she agrees or feels the need to trim spending in the current 2008-2009 budget and how. WPCNR awaits that response.



Anthony Pilla of White Plains


Pilla’s news release stated “it is time for Amy Paulin to either stand up for her constituents or to step down. Today (July 30), the Governor (Patterson) announced a staggering $26.2 Billion dollar, three year budget deficit, and thanks to the tax and spend mentality of Albany, it should be no surprise to anyone who is going to pick up the bill: the taxpayers.”


The press release stated, “it is remarkable and sad that Governor Patterson had to use his executive authority to compel the New York State Assembly and Amy Paulin to return to Albany to take care of the People’s business.”

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City Won’t Negotiate With Taxi Union. Will Issue New Rules, Meter Plan in Month

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WPCNR TAXI STAND. By John F. Bailey. July 30, 2008: Paul Wood, Executive Officer for the Mayor told WPCNR tonight the city will not recognize District  Council 9 of the International Union of Painters and Allied Trades as the negotiating representative of the White Plains independent cab owners. He said the city would not negotiate taxi work rules and fees and assorted issues with the union.  The District Council 9 of the IUPAT announced a majority of the 400 White Plains drivers had joined the union Wednesday after a membership drive last week.



Paul Wood said the city is looking at a metered cab system. This is a typical Pulsar Cab Meter, costing from $259 to $329 to install. It also has credit card acceptance accessories. Mr. Wood said it was to be determined whether the city would pay to install  meters or whether cab drivers would have to pay for them themselves or the cab companies. To furnish all 400 cabs would cost the city approximately $130,000, using this model. No model meter has been selected by the city. This is a typical best-selling meter available at http://www.andystoplites.com/pages/pulsar-taximeters.html, provided as an informational supplement by WPCNR



 “We negotiated for a year with Mr.  Mario Alfonso, whom we thought represented the drivers, and we are through negotiating,” Wood told WPCNR Thursday afternoon. “The Taxi Advisory Committee will be issuing its recommendations in a press conference in about a month with its recommendations for White Plains taxi service.”




Wood said the Mayor wants “a cleaner service, a more customer-friendly service, and a “greener” service.” He said the Advisory Committee is leaning towards meters in cabs and doing away with the traditional fare zones in the city (as established for decades in New York City), and even a one fare per cab rule.


He said that an increase in the gas tax surcharge was possible if the cab drivers agreed to improve their service. Wood said the taxi situation in White Plains has gone on for years and it was no longer acceptable to the administration.  



Asked if the city was considering declaring cab medallions obsolete and putting them up for auction, Wood said possibly, or the city could possibly issue new licenses for cabs in the city.  Wood said cabdrivers could likely expect dress codes, new work protocols and a host of changes.


Wood said Mayor Delfino wants to create a customer friendly taxi operation that would erase the poor image the cabs of White Plains have demonstrated for decades: dirty cars, ride sharing, and chaos at the station, among other observations.

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Unionized Cabbies to Meet With WP. Higher Gas Surcharge 1st. Hockley Coordinates

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WPCNR TAXI STAND. By John F. Bailey. July 30, 2008: Mike Carriere  of the District 9 International Union of Painters and Allied Trades announced to WPCNR Tuesday that his signup of White Plains taxi drivers for union membership “went well, had a nice turnout,” and the union was “pretty close” to signing up the majority of the 400 licensed White Plains cabbies.  He officially declared his union the negotiating agent for his drivers with the City of White Plains Taxi Commission.



Michael Carriere, far right, of the International Union of Painters and Allied Trades, shown addressing White Plains Cab Drivers, July 19 at an organization rally. He is shown with Mario Alfonso and Councilman Glen Hockley.  Carriere announced the IUPAT was now the official negotiator for the White Plains taxi drivers.


Melissa Lopez, spokesperson for the Mayor’s Office,  told WPCNR Wednesday morning the city did not officially recognize the IUPAT union as the official negotiator at this time. Asked if the city would recognize the union when approached with appropriate credentials, she said she would have to check further with city officials.


 



Carriere said that Councilman Glen Hockley would be approaching the Mayor on the union’s behalf to set up “a sitdown” with the Mayor  city to discuss the issues. Carriere said a gas tax surcharge increase was number one on the list. Currently with gas prices floating between $4.27 and $4.36 for regular gasoline in the city, and cabbies currently receiving a $1 surcharge, Mr. Carriere indicated the drivers need a higher surcharge. Other issues on the table were preventing city cab inspection fees from rising, limitation of number of cabs, and more taxi stands in addition to the surcharge and gypsy cab issues.


“We want a sitdown with them (the city) to see where they stand, now that the members are under a collective bargaining agreement,” Carriere told WPCNR.


Asked how the union would address cab driver appearance, cabbie display of medallions, and general protocol issues that the city has criticized cabbies for in the past, Carriere said the union would police those issues and exert influence on cabbies to meet city standards. “We will start stepping it up (the appearance issue, workrules) with our members,” he said.


He said an increased gasoline surcharge was the number issue “without a doubt.” He disputed the city notion that gypsy cabs (unlicensed operators serving the city illegally) were not a big problem.


He said there was no target date for a meeting with the Mayor. He said drivers signup with the union again this week at the 14 Saw Mill River Road offices.

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Finance Reality Show: : What Renaissance? Biz Assessment Nosedive Costs WP

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WPCNR QUILL & EYESHADE. News Comment By John F. Bailey. July 29, 2008: As WPCNR reported exclusively last week, (no inside stuff, no informed sources, just reading the certiorari refunds – am I the only person who reads them), the White Plains downtown growth not only has come to a standstill, but the value of its “thriving” business properties in the downtown, if you go by the expert analysis of the Board of Assessment Review awards last week, is in decline. The certioraris  totaling over $500,000 off the assessment roll,  awarded last week are disturbing.


Though White Plains reports it made its sales tax numbers in the last quarter of 2007-2008, and has topped $45 Million, things are not right.


Hasn’t White Plains been in a Renaissance for five years? Or is Renaissance just a feel-good word? Show me the money.


How can this be?


 



How can this be?


For the first time a series of anchor block properties were awarded significant reductions in assessments based on their business executed during the White Plains “Renaissance.” The Renaissance officially began when the holy grail, The City Center, was opened in 2003. The assessment reductions to the Mamaroneck Avenue anchor properties were awarded while they were doing business in these “boom years”



This does not make sense to me. If you take the city hall economists and the BID Cheerleaders with their pom-poms  for their word, White Plains is in a boom. Everybody’s doing well. Rising tide lifts all boats.


Except for six very big properties sprawling down Mamaroneck Avenue.


In the past, WPCNR has reported on certioraris in detail that have resulted in a property tax drain of  millions. But those were in the early years: 2000 through 2004. We thought it was disturbing – but housing was going up up up,


Well the Aches of 08 have arrived. The supply siders have run out of supply, and thanks to the Bush Boys Raiders of the Average Americans’ Ark – are using Treasury dollars to bail out their pals on Wall Street.


But something is dreadfully wrong.


The market value of White Plains real estate has hit $11 Billion as of 2008, up from $7.1 Billion in 2004  – the assessed value of the properties, however has gone down, down down over the last five years from $317.1 Million to $290.2 Million.


What is happening here? Show me the money. Or  more to the point, where the money went?


This decline is blamed on the rise in White Plains housing values which are added to the commercial property values, which drives the equalization rate between the two sectors down and drops the assessed value.


 Individual properties can bring their books in and challenge their assessments as being too high, pointing out that the property is not as profitable as the city says it was during key tax years covered by the latest certiorari settlements.  They have been doing that a lot the last seven years with a flurry of activity the last three years. In 2008, this was the first time in four years assessed value was slightly above last year. Next year will be key. In theory it should go up. In theory. Cross your fingers.


Something the City and the School District both Agree on.


Asked what the primary driver of the certiorari refunds were, Assistant Superintendent for Business Fred Seiler told WPCNR last week,


“Equalization Rate is the primary driver of the certiorari settlements, but some financial records enter into the certiorari mix,” Seiler said.


Paul Wood, the Executive Officer for the City of White Plains, called upon the legislature to wake up and smell the coffee:


“It is unquestionably the equalization rate that is the primary driving force behind the negative situation the City finds itself in with regards to certiorari settlements.


“This is why the Mayor is asking for State legislation to allow the City to have two separate rates for assessment purposes. Because the City is roughly 60% commercial and 40% residential, the equalization rate destroys us.


Mayor Takes Up Crusade


“He (the Mayor) is advocating the two formula application for any City whose property mix is 50-50 or greater. This is not unprecedented. New York City is allowed to assess commercial and residential differently, as is Suffolk County.


Asked if the Mamamaroneck Avenue Certioraris were totally caused by the equalization rate, Wood said, “Absolutely, Yes,” and if the financials of the property owners had nothing to do with the calculation of the certs, he said “They (the financials) had nothing to do with the calculation of the certs.”


I asked what the future held in store, whether properties who previously had received certioraris might be refilling in the next five years.  Wood said he hoped not.


Asked if the equalization rate might go up this year (from the 2.75% level, an all-time low), since housing values have fallen about 10%, he was optimistic:


“Yes, you’re right. That’s the unfortunate and absolute absurdity of the equalization rate. As residential properties lose value, the rate will increase therefore putting the City in a better position to defend certs. But the administration also does not want to see our residential property owners hurt by falling values. Again, if we had two rates, we would be forced to pick between two evils.”


How could this happen?


In the past, the city has seen Macy’s, Sear’s,  One North Broadway, Nordstrom’s,  Verizon, among others receive reduced assessments and large certioraris. We shook our heads in bewilderment. Saw prices that did not seem high enough and assessment reductions that made the buildings look very undesirable. They are not undesirable, of course.


How could these stalwart business buildings sell for less than you would think, make less profit when office rents and retail rents are up about double in White Plains? Office rates for example, as Mayor Delfino pointed have virtually doubled.


In the first week in July, a series of 14 properties on Mamaroneck Avenue itself were granted over half a million dollars in reduced assessments ($531,000). Two of the blocks are in the middle of Mamaroneck Avenue, prime retail locations. How can these properties not be making enough profit on their space during what has been touted as a boom time in White Plains – the good old White Plains Renaissance? Apparently the Renaissance has not been kind to them. Apparently expenses took their toll.


The Zirconium Halo


If you go over the latest certioraris numbers on these Mamaroneck Avenue jewels, you would have to assume that the City Center had no halo effect on the rest of Mamaroneck Avenue the last five years – at least for these properties.  Other than the $11 Million increase in the sales tax since 2003, if you judge the certioraris  (court actions claiming the properties were overtaxed), the Board of Assessment Review has settled and the reduced assessments awarded the businesses in the downtown – the halo effect has been a Zirconium Halo.


 The numbers  on the six properties (costing the city $500,000 off the tax roll) last week are banana cream pies in the faces of the city Common Council,  and the Downtown Business Improvement District,  the Westchester County Association.


They are slaps upside the head of the Albany legislature that is afraid of all the certiorari specialists who make a fantastic living off these certiorari suits. The legislature has it within their power to stop the certiorari gravy train for commercial property owners, but lack the guts to do so, because of the contributions of you guessed it – the commercial property owners, and the certiorari profiteers.


Equalization Rate Bankrupting the Homeowner


The Suozzi Commission in their Preliminary Report to Governor Patterson on Property Tax Relief somehow completely fails to mention the Equalization Rate tax gimmick that forces the homeowner to subsidize large commercial properties.


The Suozzi Commission on property tax reform came out strongly for a cap on property taxes, a circuit breaker on property tax tied to income, among other measures, but did not come out strongly for a separate commercial tax rate which would eliminate the equalization rate killing us here in White Plains.


The equalization rate bill that Assemblyman Adam Bradley did not introduce in the Senate because, he said, it had no chance of passing,  continues to languish.  Bradley’s bill would only effect White Plains, allowing us to assess commercial properties differently than residential properties. Why can’t we pass it now? Otherwise financial disaster looms in about three years.


Assemblyman Bradley noted that New York City and Nassau County are the only jurisdictions in the state that have separate tax rates for commercial and residential properties.


Nassau Practice not new. Commercial Tax Rate 2-1/2 X the Residential Rate.


The practices have been in place, though since 1981, according to Karl Lasky, Counsel to the Nassau County Board of Assessors,


“New York and Nassau County are the only assessing units in the state allowed to assess four different classes of properties. They have different tax rates and different equalization rates. It went into effect in 1981. Class 1 is single family homes, Class 2 is condos, coops and apartment houses, Class 3 is the utilities, and Class 4 is all the commercial property. Why they did it, I guess was politics.


“ In terms of treating commercial different from residential, it is done in other places based on The Homestead. Article 19 allows for an assessing unit to have a homestead not homestead distinction  and therefore treat commercial differently, and that’s done throughout the state. They have to apply through the New York State Office of Real Property Services.”


In Nassau, he says,  the value of  residential housing is not added to the Commercial property value. “Commerical and residential are treated separately. In Article 18, they also have justification portions which means that they pay different shares of the overall tax levy. They have different class shares. The residential portion pays a smaller percentage of the over class levy then they would if everything were in one class.”


On average, the tax rate on Nassau County Commerical Properties is 2-1/2 times higher than the tax rate for the residential properties.  It is interesting that this tax system did not work it’s way into the Suozzi report since Suozzi is the Nassau County Executive.


When asked this question about killing the equalization rate at a hearing in Tarrytown this past year, the fast-finding panel brushed it aside. Funny, isn’t it?


Equalization Rate Reform Couldn’t Come at a Better Time


Meanwhile now that Governor David Patterson and the bean-counters in Albany have discovered in the last week that the state is losing revenue rapidly this year, don’t you think they might pay attention to the equalization rate problem and give communities like White Plains relief – and extract more revenue from the businesses that have been getting big breaks on taxes, while pushing the shortfall over on the tax payers.


Is it time to do away with the Equalization Rate in the name of relief for the taxpayer?


Let one politician up there in “Alibyin’ Albany” explain why they don’t. 


Why won’t they?


Anchor properties Looking at dropping taxes every three years.


The certs in White Plains generate an ominious warning. White Plains is hurt because it is a growing city. The equalization rate kills a city that is growing.


If these big anchors of the great Fifth Avenue of White Plains aren’t generating the numbers that increase the value of their property, what are the rest of the merchants generating? What’s happening in those thriving inner cities of Yonkers, Mount Vernon, New Rochelle and Peekskill? Perhaps their Boards of Assessment Review are tougher than White Plains.


If the legislature does not do something about the Equalization Rate they will drive residential homeowners into bankruptcy. Because  certioraris nabbed once will come back in just a few short years.


Low 2.75% Equalization Rate bodes WP tax disaster in Three Years.


The Equalization Rate in White Plains hit nadir last fall when it dropped to 2.75%. Three years from now in 2011-2012, the White Plains Legal Department,  Corporation Counsel Edward Dunphy predicts White Plains will face another around of certioraris to lower current assessments even more on commercial properties. He expects many of the big cert winners over the last five years to reapply. The effect? More shift of taxes to the residential homeowner.


You do not want to be a Suprintendent of Schools or the Mayor of White Plains in 2011 when the second wave of certioraris start to come home to roost, vulturing the tax roll.


But what about the new properties just opening? Will they “Cert” the City, too?


 Could this be the beginning of a rush-to-certiorari of the other big new blocks in White Plains – The Ritz Carlton, One City Place,  not to mention The Westchester, The Westchester Pavilion, the Walmart complex, The Galleria (gasp!)  down the road say in 2009? Will they all file for certs based on  2007-08,08-09,09-10,10-11? They can come back every three years for certiorari relief.   


It is a scary thought. Think of the staggering increases in expenses the retailers, the office space landlords and assorted building owners face this year: the utility increases, the fuel/delivery increases, the slow shuttering of stores. East Post Road is starting to die a slow death: ANL Sports has shuttered, there is no rental yet to replace Border’s in the Pavilion, 180 East Post Road is empty, Frozen Ropes has left.


If this vision of new certioraris comes to be, who is paying the taxes that the commercial owners will not be paying?


Ask not whom the taxman’s bell tolls, individual homeowner, it tolls for thee.


The burden of the taxes is being born by the homeowner in this city, while the commercial property owners keep having their property assessments lowered  by reflex by this administration . The Board of Assessment Review continues to cave. And, no one seems to care to see what it is doing.


Commercial property owners point to the sales tax increases development has brought.  Despite City Hall’s touting the sales tax as paying more into the city budget than the property tax from homeowners and commercial property owners, city hall overlooks  the $19.5 Million generated by the most efficient revenue-generating operation next to the Port Authority, the White Plains Department of Parking. If you throw that in the resident is being squeezed to park.


Like it or not, the Common Council which has not paid any attention at all to this assessment drain, is going to face this head-on in the next two to three years. The continued deluge of certioraris when the commercial property owners return for another round in the Board of Assessment Review Game Show is going to really hurt.


WP Homes Selling for Less.


Depending on what realtors will admit to you, the big ticket homes are moving very slowly. For less than expected.  Many will only move with significant price cuts. Some may even sell for less than homeowners recently bought them for. This may be particularly true of the multi-million condominiums recently sold in the city. Are they “flip-able?” Who knows?


But if I’m an owner of a condominium I bought for $1 Million  and I’m assessed at that price, and I cannot sell it – I can make a case I am over-assessed. If I sell it for less than I bought, the tax roll plummets, and there have been a lot of condominiums sold the last two years in the city.


Now, since assessments are dropping on commercial properties every year thanks to the Board of Assessment Review refusal to fight, and the city failure to enact surcharges on something (anything!) to get the revenue back, and since home values are dropping in White Plains, the perfect conditions might be ripe for a revaluation.


Revaluation a politician’s poison pill.


In such a revaluation, the commercial properties could be assessed at higher than they are now, and homes incredibly under-assessed could be raised. The older posh homes which have not been remodeled in years, will pay more – making their taxes more reflective of their actual market value. The newer homes which are assessed more accurately since they are newer, could be assessed more in tune with today’s market which may be lower than the price they paid.


The commercial property owners will fight the revaluation tooth and nail, so it probably will never happen.


The owners of those lovely big homes from the 40s and 50s in the South End will fight it because their homes are assessed at what they were bought for years ago – if they have not remodeled – and they are paying taxes way lower than they should be.


Go on the city website and see what those big old places in the Highlands and in the Gedney area are paying in taxes, and you will see what I mean.


 It’s touchy – but with both commercial assessments and home prices dropping, revaluation may be a way to make commercial property owners pay their fair share without going to certiorari relief cases where our city is the big pushover.


But, I do not think reval has a chance of happening.


The Issue No Politician Touches


However, in the coming Mayoral campaign, this certiorari “license to lower taxes”  shifting the burden of commercial taxes right over to the homeowner should be a big issue.  What will the candidates for Mayor do about it? It is up to the citizens to ask the questions, and don’t take generalities for answers.


Will our legislators get some sense of reality and stop pandering to the commercial owners and lawyer pals who make money off the cert cases, and say “no” to the equalization rate tyranny in White Plains? After all, it is just in White Plains that we are asking for this.


I doubt it.


The certiorari settlements, the logic and numbers of which are never detailed or vetted on a case by case basis – should be a major issue. There should be public hearings on the merits of each certiorari. Enough of this “your people and my people in a room, we all know each other” stuff.


In  the present “never met a certiorari we didn’t like” climate in the city, which the Democratic Common Council has not said anything critical about,  the middle class homeowner is being squeezed.


 If the Democratic leadership in this city and county, and I use the word “leadership” sarcastically, doesn’t address this – the tax base is going to collapse.


Forget about affordable housing. It is a dead issue. How about “Stay-in Housing?”


Number one, here in “booming White Plains,” (the city developers couldn’t wait to get a piece of just a scant 12 months ago) – you have 7 projects that are not going to build any time soon – The Windsor Place Condo,  Hale Avenue, the Hamilton and Church condominiums, the Maple Avenue assisted living, the North Street Community, and the DeKalb Condo project, and 55 Bank Street is in jeopardy. (We do not know whether the Robert Weisz hotel project overlooking Maple Moor Golf Course stands right now.)  


They were eager to build, the council approved, now the developers can’t find the money. Those sites are live site plans – effectively blocking development while they hold for better times.


The Council now keeps granting site plan extensions de facto. In the future, it might be prudent to explore the legal ramifications of not renewing site plans – or at least requiring a finance bond to be posted with stiff penalty if you do not build within a year. This developer habit of coming in, pushing a project through getting an approval – then not doing anything – strangles city growth and is a form of speculation that hurts the city. It may be smart business. But, it is  dumb or maybe not so dumb government.


And what developer gets in trouble in this city? The guy who builds – Louis Cappelli.


Arguably, the City Center and the Ritz have definitely helped greatly. But, no one else in the city is helping. Did I hear one peep out of the council, except for Rita Malmud – when 55 Bank Street  defaulted and wants to change the deal?  No.


Meanwhile, the man who gets financing for his projects, most recently $700 Million for his Concord project, has been run out of town for erecting a stone monument on a traffic island and not yet building his affordable housing when it was the Common Council that told him not to build it, they wanted the Pinnacle developers to build it.


The 7% Progression:


If you still have a mortgage in this economy and tax environment you are in huge trouble. Your taxes are going up 7% a year in White Plains. Your utilities, as also reported by WPCNR at the beginning of June, are going up 300% — from 8 cents a kilowatt hour six months ago to  13 cents in January, 19 cents per kilowatt hour in June, to 24 cents  a kilowatt hour this month – according to Con Edison this week. In June Con Edison predicted 28 cents in June to WPCNR, but apparently have been able to gradually move up to that.


The city and county taxes are the bottom feeders. The school district in this city, to keep feeding a $10 Million a year budget increase habit, is going to take a lot more every year. It will make $5.03 a thousand dollars of assessed value look like a bargain next year. $200 Million next year, just watch! $215 Million by 2010-11. $230 Million by 2011-2012 – that’s with 7% increases.


You’ve got to give the teachers 5% to keep them happy after the administrator giveaways this year. You’ve got utility costs out of control. You’ve got the bond to pay for. This was the year to do some serious cutting over at 5 Homeside Lane and it did not happen. 


Where is the money going to come from?


Ask not the obvious.


The individual homeowner does not have the lawyers to fight their tax down like the commercial property owners have their certiorari lawyers.


It’s going to come from you, the homeowner.


Have we been in a Renaissance for five years or a New Deal for Commercial Property Owners program?


Yesterday, Governor Patterson said “Next year’s budget process starts now.”


But it really should start for every government from the bottom to the top.


Perhaps the City School District, the Common Council, the City Budget and Management Committee and the City Commissioner of Finance and  the City Assessor should meet and do some numbers-crunching now.


I have not even mentioned the never-never-land of government budgeting, Westchester County Government, that perhaps should start cutting now, instead of sticking the cities and towns for next year’s massive county tax increase. They should start cutting now. 


(Where is Andy Spano these days anyway, vacationing with Gary Kriss?)


Who knows what pain lurks ahead?


Who knows what the state is going to lay on the city and county due to the Wall Street losses (the poor, pathetic whiners).


May we remind you of the Carl McCall mess not so long ago?


Expect high, heavy hitting increases in state pension fund contributions from the school district and the city, less educational aid, and probably a property tax cap – just when the school district is going to need a 15% increase in the budget, and is having trouble getting the teachers to settle.


If I can figure this out, why can’t our brilliant elected officials?


It’s frightening to think the City of White Plains runs no deficit and appears better run financially than the state and county and federal government put together.


But they have not made wise decisions either.


Ask not for whom the taxman’s bell tolls, individual homeowner, it tolls for thee.

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Governor Calls Emergency Session Aug. 19. Calls for $1.2 B in Cuts

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WPCNR ALBANY ROUNDS. July 29, 2008 UPDATED 11:50 PM EDT WITH TEXT OF GOVERNOR’S ADDRESS; UPDATED JULY 30, 2008  11:17 AM:  Governor David Patterson and his Budget Director, Laura Anglin,  presented a detailed analysis of the state’s financial situation this morning at 10:30 A.M. in a live webcast calling for the legislature in cooperation with the Governor to cut $1.2 Billion from the current budget. Ms. Anglin presented a slide show documenting the precipitous decline in state revenues, which may be viewed at http://www.budget.state.ny.usa and clicking on Budget Director’s Presentation. The charts speak volumes about the financial condition of the state (not good).



Governor David Patterson and Budget Director Laura Anglin addressing the media in Albany this morning on the Budget.


The governor said his office has identified $630 Million in savings across state agencies, to catch up with the current shortfall indicated by First Quarter Results. He enacted a hard hiring freeze, and, in addition he is asking the legislature when it returns to work in Albany at his request August 19, to produce another $600 Million in cuts off the present state budget, to begin to trim the 2009-2010 Budget.  The cuts amount to $1.2 Billion off a $122 Billion Budget ($81 Billion Operating Budget)


The governor and Budget Director, in addition, said they were looking to lease-partner state assets to run them more efficiently, but declined to name what assets were in play for such partnerships.


The $1.2 Billion in spending cuts proposed by the Governor would carry forward into next year’s budget cutting some $2.5 Billion off the projected 2009-2010 shortfall of $6.2 Billion.


The Budget Director said the governor was not looking for cuts by passing along cuts to county and  city governments. The session painted a bleak picture of the present economy. The governor said if the state does not act now, the opportunity to cut into the growing deficit this year would be lost. He maintained that education cuts were still in play, and nothing was “off the table.” 


Wall Street Real Estate Numbers Numb


The  Budget Director pointed out that Wall Street problems were accounting for the widening state deficit, citing a projected 24.4% decrease in Capital Gains, a 20.5% decline in Wall Street Bonuses, pointing out this was the first time since 2002 that Capital Gains had declined.


On the foreclosure front, she painted a bleak landscape: In the first quarter of 2008, 13,700 mortgage loans entered the foreclosure process, up 10,000 properties since the first quarter of 2007. She said at the end of the first quarter, the number loans in foreclosure had almost doubled since the first quarter of 2007, 45,100 in foreclosure (2.2%) to 25,000 (1.2%) a year ago.


Yesterday, Governor David L. Patterson called legislators back to Albany, beginning August 19,  to hammer out immediate spending cuts, state workforce cuts  to deal with a ballooning state revenue shortfall. The Governor promised to “curtail” the costs of heating oil so New Yorkers would not freeze this winter. He called for the legislature to pass a property tax cap to limit school district property tax increases, and indicated there would be layoffs of state workers, as well as spending cuts in the existing state budget passed just four months ago, which he signed.



“Next Year’s Budget Process Starts Now. New York families are already making the tough choices…New Yorkers are prioritizing spending every day…Now your government is going to follow your lead. We’re going to end the legislators’ vacations and bring them back to Albany and reprioritize the way we manage New York State finances.” Governor David Patterson in his state address today 45 minutes ago.


The governor said the state deficit over the next 10 years three months ago was $21.5 Billion, now three months later that is projected to be 26.2 Billion, “a staggering 22% increase in less than 90 days.” He noted that the 16 major New York banks projected a 97% decrease in taxes they owned to New York State, plunging from $173 Million last year  (through June 2007) to $5 Million this year. He said the situation will get worse before it gets better.


The Governor said “It is time for New York and other governments to cut up our credit cards. The era of buy now and pay later is over. The faster we address this crisis, the faster and stronger we will emerge from it.”


The Governor said that in the next four weeks his administration would be working to address the size of the state workforce, further cuts to agency spending, and generating proposals from public and private partnerships to deal with the crisis. He said New Yorkers everywhere have been cutting back, indicated by the decrease in traffic on the New York Thruway, meaning many have cut their vacations. He said the legislature should take their cue from the citizens in learning to do more with less.


Herewith is the text of the Governor’s remarks:


My fellow New Yorkers,


Our state now faces increasingly harsh economic times. When I travel across the State I see communities suffering. Everywhere I go I meet people who are losing their jobs and their homes. I meet families forced to pay more for gasoline and for food, while their paychecks stay the same. Next winter some of these families will have to choose between heating their homes and feeding their children. The rising costs of health care mean that they can’t afford to get sick. The rising costs of education mean that parents can no longer prepare for their children to be in the work force. The damage on Wall Street is affecting all of our communities and its effects on our New York State’s finances are devastating.


When I took office, I was apprised that the New York State budget deficit for next year was $5 billion. I immediately ordered cuts to state spending, but the situation has gotten worse. Tomorrow I will submit a budget plan that places our deficit for next year at $6.4 billion – that is $1.4 billion higher than it was just a few short months ago. How could this happen? It’s simple. Costs are rising steadily, revenues are dropping dramatically.


In the beginning of May, our budget director projected our New York State deficit over the next three years at $21.5 billion – that was a record. But things have changed. That number has now erupted to $26.2 billion – a staggering 22 percent increase in less than 90 days.


In June of 2007, the 16 banks that pay the most on taxes to their profits remitted $173 million to our New York State Treasury. This June, just a month ago, they sent us $5 million – a 97 percent decrease. Our economic woes are so severe that I wanted to talk to you personally this evening about where we stand. The fact is: we confront harsh times. Let me be honest: this situation will get worse before it gets better.


But the time to act is now. We cannot waste any further opportunities. We can’t wait and hope that this problem will resolve itself. If we do, we will lose our opportunity to turn this situation around. These times call for action and today I promise you there will be action.


Today I am calling the legislature back for an emergency economic session on Tuesday, August [19th].


In the interim, my administration will confront the following issues: addressing the size of the state work force; further cuts to agency spending and generating proposals for public and private partnerships for our State assets.


When I meet with the legislature, we will work together to help New Yorkers cope with this crisis. We will continue working on a property tax cap to lighten the load for homeowners and we will find a way to curtail the rising costs of home heating next winter. I will do everything I can to make sure that New York’s families do not freeze when it gets cold. My message to the legislature is that next year’s budget process starts now.


New York’s families are already making the tough choices. Every time you fill up a tank of gas or go to the supermarket you are learning to do more with less. New Yorker’s are prioritizing spending every day. The lesser crowding of the New York State Thruway is an indication that too many of you have postponed holidays or canceled your vacations.


Now your government is going to follow your lead. We are going to end the legislators’ vacations and bring them back to Albany to reprioritize the way we manage New York State’s finances. For too long we have done less with more and paid more for less. Now government will do what families have done when their incomes have fallen – we will cut spending. Government will learn to do more with less.


But I can’t do it alone; I need all of your help. I’m asking for the State leaders in the public and private sector, in labor, those who serve in Washington, owners of business and others to join us in this great effort.


It is time for New York and other governments to cut up our credit cards. The era of buy now, pay later and later is over. The faster we address this crisis, the faster and stronger we will emerge from it. That is the path to a better and more prosperous New York.


I’d like to thank the networks for extending me this opportunity and all of you for watching and listening this evening. Good night.

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WANTED: Savior of Schools

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WPCNR THE DAILY BAILEY. By John F. Bailey. July 28, 2008: The school district has engaged a consultant, Hazard, Young & Attea Associates,  at a cost of $70,000 to begin a search for a new Superintendent of Schools for the City of White Plains. This will begin with a series of community input meetings in September to find out what kind of person and leadership skills the community feels the district needs in a new Superintendent. WPCNR feels, from a perspective of eight years of covering the school district, this is a totally unneccessary expenditure (like the scoreboard purchase approved last week), symptomatic of the Board of Education blithe blatant spending policies and failure to to look to where White Plains education is going.


With School taxes poised for a record one-time increase next April (justified by the economic inflation forces at work this summer), the school board should know what they need.


I have taken it upon myself to write the first advertisement for the school district personnel consultant for a “Savior of Schools,”  for not what the school district would like in a Superintendent, but what the district needs — something unique for school district management. Here it goes:


WANTED


Savior of Schools


For White Plains City School District


Experience: Proven credentials as  a leader or Assistant Superintendent of a school district of  up to 10,000 students of diverse population.


He or she should bring to the district a demonstrated record of academic improvement in upgrading academic performances of a diverse student body in a 3-year or less time interval with a significant  ESOL student population in a district respected by the collegiate community, demonstrated by the number of students continuing to collegiate education.


They should be capable and familiar with the challenges of and demonstrated ability to manage a school budget of $200 Million for maximum educational achievement with prudent financial cost conservation in the face of dwindling taxpayer support and significantly increased costs.


He or she should be able to interact productively with parents, taxpayers, faculty and administrations and city management to contain costs in a manner that will not overburden taxpayers and compromise quality of education.


Proven Administrator Motivator


Able to reorganize district management, academic administration, and information reporting to demonstrate timely feedback on the effectiveness of skills, practices, and managers.


Innovative Amiable but Firm Negotiator 


Able to work with teaching faculty to attract high quality new recruits with pay-benefits ratios acceptable by employee  to deliver bottomline effectiveness, arresting out of control salary escalation now affecting district – with pragmatic department-trimming skills to lower overall budget.


Endowment Specialist/Fundraiser


Able to interact with the community, city and government  to build a district endowment fund to transition the district from a totally taxpayer supported operation into an endowment/taxpayer combination to finance major new construction and limited borrowing.


Innovator – problem-solver


Capable of undertaking a major cost-cutting management initiatives to lower the costs of operations without sacrificing educational effectiveness.


Salary: $300,000K and Up Plus generous incentive package based on performance in bringing school budget growth under control.


Equal Opportunity Employer

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Number of Gypsy Cabs Trolling City “Exaggerated,” Wood Says.

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WPCNR TAXI STAND. July 29, 2008: Paul Wood, the city’s Executive Officer, issued data from the Department of Public Safety today that disputes the extent of gypsy cab (medallion-less cars for hire) forays into White Plains. Wood said the taxi driver spokesperson, Mario Alfonso  “definitely exaggerates the issue.”


Wood reports that the number of  misdemeanor  or arrests and impounds for unlicensed cabs impounded by The Department of Public Safety has been very low. In 2005,  he said the number was 5; 2006, 3; 2007, 7, and to date in 2008, 3.

When someone is found operating in the city without a medallion, they are arrested and booked, their cab is towed and the max fine is $250 plus the tow fee.  

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