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Ambler. By John F. Bailey. August 12, 2004, UPDATED 11:12 P.M. E.D.T.: A source with JPI, the builders of the Jefferson charged today that City Hall leaked JPI’s plan to explore the condominum market information given to the city in confidence several weeks ago on a “heads-up basis.” The source, speaking to WPCNR on condition of anonymity, said flat out that The Journal News story on condominiuming The Jefferson came directly from City Hall. He added that JPI has every intention of completing the building before a sale.
WPCNR called Mr. Crisalli at his office to request confirmation of when and what he told The Journal News about the condominium plan, as Paul Wood, the City Acting Executive Officer, said he did. WPCNR was informed this afternoon by a company spokesman that the company would have no further comment on this matter.
Meanwhile, two White Plains Councilpersons expressed surprise, bordering on shock about the condominium possibility.
In an irate phone call to WPCNR, Paul Wood, City Acting Executive Officer, denied the story was leaked by city hall, and demanded to know WPCNR’s source. He said that Paul Chrisalli of JPI told Wood that he (Chrisalli) told the reporter writing the story that JPI was turning the JPI development into condos, which Mr. Wood failed to say when he (Crisalli) was contacted about this matter and asked about it. Wood said, “I’ll confront him. I’ll call him (WPCNR’s source) an (expletive deleted) liar.”
WPCNR called Mr. Crisalli at his office to request confirmation of when and what he told the Journal News about the condominium plan. WPCNR was informed this afternoon that the company would have no further comment on this matter.
A curt Councilwoman Rita Malmud said she recalled no mention of condominium conversion possibility whatsoever when the JPI Jefferson project was approved. She also said that at the time a project becomes condominium, the PILOT agreement is null and void, the sales tax will change, as well as the IDA agreements.
A no-nonsense Councilman Benjamin Boykin said “when someone comes in for an approval for rental apartments, I expect rental apartments to be built.” He said he had to check with the city Corporation Council (Edward Dunphy) whether or not the owner had the right as part of the site plan to change the nature of the marketing of residential housing, as long as it remained residential.
Paul Wood, the City Acting Executive Officer, told WPCNR JPI did have that right as owner, and that any switch to condominiums would require only a minor site plan amendment, not a resubmitted site plan.
“The Mayor for All Seasons, “ former White Plains Mayor Alfred Del Vecchio, an expert on what is a minor site plan amendment and what is a major site plan change, said he hoped the city would require a new site plan. Asked whether the matter in his view required a new site plan, and new Common Council approval, Del Vecchio thundered on the phone, “Absolutely!”
Did City leak developer strategy to press?
The JPI source said JPI “did not release information on condo possibility. The Journal News got that from City Hall.”
WPCNR has learned that the sale story originated 10 days ago with the Westchester County Business Journal when they reported JPI putting the property for sale with Cushman & Wakefield in their August 2, issue, with no mention of the condominium possibility.
Paul Wood, the city’s Acting Executive Officer, confirmed to WPCNR Wednesday afternoon that JPI had mentioned to the Mayor’s office “several weeks ago” that they were exploring the condominium possibility, and he had no idea where the condominium story appearing in Wednesday’s Journal News business section had come from.
Wood speculated that Cushman & Wakefield had been the source, whom he said had told him they had expected a story to appear this weekend, and were “surprised” to see the story appear in The Journal News yesterday.
In his phone call to WPCNR today, Wood was more specific, he said Crisalli told him he told the reporter, Noreen Seebacher that information about condoizing Tuesday afternoon.
Ms. Seebacher is to be commended for getting comments from Larry Schwartz, Deputy County Executive that very afternoon on such short notice about condominium effects on the IDA agreement with JPI, comments from JPI, a chart from her art department (perhaps already existing), and two photographs (perhaps file photos). However the condo information was not revealed to the Westchester County Business Journal in their report of the Cushman & Wakefield assignment August 2.
Just a Test
WPCNR’s JPI source characterized the condominium possibility as “just a test,” as they explain it, “The White Plains condo market is strong, as is the rental market. JPI has decided that based on number of inquiries it has received from individuals interested in buying a unit, that they will test the market with some ads.”
Condo-izing a Dry Test Not A Formal Advertisement.
The source stressed this is a dry test by JPI, not “a formal offering.”
“If the prospects (for condo buyers) look good, they would then seek full approval from the State Attorney General’s Office. The State AG can allow them to test the viability of the condo market as they plan to do over the next few weeks with some ads. Prices would begin in the low $300,000 range.”
Just a few cosmetic changes.
Our JPI insider said, the building now scheduled for completion in 2005 was not going to change in terms of structure: “No changes to floor plans or unit count would be made.” If it were to go condo, he said, “finishes would be upgraded, wood floors instead of carpet, granite kitchen countertops, but not structural changes. The building is too far along for that. ”
Cushman & Wakefield Hired as Gatekeeper. We’re not selling the project.
Possibly to counter wild speculation that JPI has again exceeded its budget on this project and was contemplating selling before selling the building, our insider said “the possible sale of building is based on unsolicited inquires from investors (to JPI).”
The JPI “insider” explains: “Rather than taking these random calls, Cushman & Wakefield was retained to screen the calls and determine if they were serious investors. Any would-be investor would have to sign a confidentiality agreement before any financial discussions took place.”
Cushman & Wakefield is characterized as not aggressively promoting the building, just checking bankrolls. WPCNR’s contact says: “If C&W determines that there is serious interested parties, they will be providing full information. JPI might then consider selling the property if the price was deemend appropriate.”
The JPI organization is spending approximately $100,000,000 to construct the property.
JPI will finish off the Building.
Our man on the inside said that there is no question the building will be completed even if the building is sold. He says:
“They (JPI and HRH Construction) will complete the construction of the project regardless of sale. The first portions are on schedule to be ready the last quarter of 2004 with all remaining units ready during the first quarter of 2005.”
We love this project. Not “actively” moving it.
The JPI man said, JPI loves White Plains, the Jefferson Project and the White Plains market. He noted that the Cushman & Wakefield arrangement is by nomeans an attempt to dump the property:
“The company is happy with the project and with the strength of the White Plains market and has not actively attempted to sell the project. The interest has come in because many investors are now looking at opportunities in White Plains, and the JPI job is one that is drawing their attention.”
