WHITE PLAINS CITIZENETREPORTER SETS RECORD VISITS FOR YEAR 7,017,658 VISITS! 2,098,003 VISITORS MADE 6 VISITS A DAY EVERY DAY. 63,330 UNIQUE VISITORS MADE 133,730 VISITS IN DECEMBER. WPCNR AVERAGED 17,284 VISITORS A WEEK, VISITING 31,270 TIMES.

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WPCNR FINANCIAL TIMES. By John F. Bailey. April 3, 2004: Residents of the city are opening up letters from The City of White Plains containing their Statement of County Taxes for 2004, and the true dollars-and-cents impact of the Westchester County property tax increase on White Plains is hitting home.

If you own a home in White Plains, your County Property Tax is going up 22.3 %. The County Tax bills are due at the end of the month.

The impact varies, of course, according to your assessment. But here is the impact on two homes.

One, situated in the quiet, in-demand Lower East Side of the Southend, assessed at $18,475 Taxable Valuable (a market value of about $600,000)  is being billed $1,849.49 in County taxes,  an increase of $404.41 over the 2003 county tax tab of $1,494.08.

Another home in the posh country-cozy Southend of town, assessed at $23,900 Taxable value, with a market value of approximately $700,000, is kicking in $2,455.97 in total county taxes, up a painful $523.18 from the $1,932.79 they paid in 2003.

School Tax Next in Line

Add to this, the proposed City School Tax Increase of 7.53%, translating into approximately $500, for homes of these values will add another financial layer of pain. Still to come is the tax increase the City of White Plains is expected to impose in its 2004-05 budget, that will be unveiled Wednesday to the Common Council. Of course, there is always the possibility the City of White Plains will attempt to meet the budget gap in another way besides tax increases.

The city budget gap is estimated by its Budget Director, Ann Reasoner to be $10 Million minimum, due to state mandates alone. That is  before salary increases, city-responsible operations of the city theatre, and increased budget demands of all city departments are figured in.

Sales Tax Increase Saves Republican Orange County.

There is the possibility the city may take a leaf from the Westchester County playbook and attempt to recoup part of its total mystery deficit (they have never put a total figure out as to how much total extra revenue they need to meet their expense baloon), by requesting another sales tax increase, as Orange County did last week and had the sales tax hike approved benevolently  by the State Legislature on Wednesday.

According to the MidHudson News website, Orange County’s County Executive Edward Diana, a Republican, in order to balance his budget, included $17 Million in his 2004 budget from an anticipated ¾% county sales tax increase. This increase was unanimously passed by the State Senate this week, and the Assembly passed it by 99-45. County Executive Diana said, according to the Mid-Hudson News, he would take a final vote on the tax Friday.

 

An Intriguing Solution

 

Were White Plains to take this sales tax fix route, Assemblyman Adam Bradley, or Assemblywoman Amy Paulin would possibly be asked to introduce the bill in the Assembly.

 

According to Westchester County Legislator, George Latimer, Orange County has increased property taxes by 22% and 12%, the last two years.

No matter how the city chooses to make up its deficit no matter how big, the financial impact of the county, school and city revenue demands are now becoming sobering reality for White Plains citizens.

A seasoned observer of tax rate minutiae, estimates a total tax increase for residents between the three taxing authorities of county, school district and city as approximately $2,000 on his residence alone, if the city chooses to increase taxes alone.

 

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WPCNR Main Street Journal. By John F. Bailey. April 2, 2004, Updated with Health Club profile, 11:30 E.S.T.: Louis Cappelli today announced he had signed a lease Friday with New York Sports Clubs, the health club based in White Plains on North Broadway, to occupy and manage the state of the art health club he is building atop the City Center Garage. Cappelli said it was his company decision not to sign the lease with LA Sports Fitness, as he had previously announced.

NEW YORK SPORTS CLUBS TAKES OVER on top of the City Center Garage, shown here on March 13. Mr. Cappelli reports he has signed the lease today. Photo from WPCNR News Archive.

Cappelli said he did not sign with LA Fitness at the last moment because it made more business sense to give the lease to a local sports club rather than hurt a club’s business that already existed in White Plains. He noted that New York Sports Clubs had better financials as another reason he backed out of the LA Fitness deal. “We went down too fast on this one (LA Fitness). You want to give yourself the chance to optimize your  chances. And we went to fast. When you look at it, you don’t want to compete against other businesses in town. It didn’t make sense to bring in a health club that would fight for another club’s customers.”

Cappelli reports New York Sports Clubs “Cappelli style” will open atop the garage in September.

New York Sports Clubs  (of White Plains) is a subsidiary of The Town Sports International (TSI)  the largest in the Northeastern United States. Since 1974, the TSI roster  has risen to 125 high quality facilities in New York, Washington, D.C., Boston and Philadelphia—with membership totaling more than 350,000. The TSI network is made up of the “brands:” New York Sports Clubs, Washington Sports Clubs, Boston Sports Clubs and Philadelphia Sports Clubs. In addition, TSI features the Forum and the Joggeli Fitness Clubs in Basel and the Luxor Club in Zurich, Switzerland.

The TSI website asserts that a person in any fitness condition find facilities to meet their own health and fitness needs at a TSI gym . It has a reputation as being the club for no-nonsense fitness buffs and tailors exercise and fitness programs. TSI facilities offer racquet courts, pools and basketball courts, which fit right in with Mr. Cappelli’s plans for  his Garage Health Club.  The TSI club profile features weight equipment, cardiovascular equipment and other exercise apparatus. Personal  training, massage, steam rooms and saunas, in addition to Sports Clubs for Kids and fitness assessments are offered.

The company credits its innovative fitness programs, pro staff,  and dedication to quality and service and continual facility improvement. Learn more at the website, www.nysc.com.

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Journal. Interview with The Super Developer, Continued by John F. Bailey. April 1, 2004: Louis Cappelli, the Super Developer, reached out to The CitizeNetReporter again Thursday evening to make it clear that his newly struck deal (with J P Morgan Fleming Asset Management in which JPMFAM is partnering with Mr. Cappelli, investing $105 Million in One City Place, (The North Tower), was not taking profits out of City Center on his part.

 

 

 THE SUPER DEVELOPER IN ACTION: Louis Cappelli said he is turning over his $40 Million in equity, what would be left  of the JP Morgan stake, after paying off Cappelli’s $65 Million debt on One City Place, and put it to work building the “Three Sculptures” he plans for 221 Main Street.  He expects to begin “The Triple Towers” in June, pending expected Common Council approval in May. The Super Developer is shown in a photo taken March 12, inundated with plans in his office on 14 Mamaroneck Avenue across from the City Center, shown in background. Photo by WPCNR News

He made it clear that Trammell Crow was not a third partner in One City Place, that he and JP Morgan were the only two partners on the project under the pending deal, while Trammell Crow was an associate, under contract to manage and lease the building only, not a participant in the profits. Trammell Crow manages several buildings for JP Morgan that has purchased Trammell Crow owned properties.

 

“As my part of the partnership, “ Cappelli said, “I am A, supplying the building, and B, fully responsible for the balance of the construction, which will be complete by the end of May,  and C, when I pay off the $65 Million debt the building cost, I will have $40 Million left, and D,  (as their part of the partnership) JP Morgan is supplying $105 Million cash.”

 

Asked if he was paying being paid for the balance of the construction, Cappelli said he was not: “I will be funding the complete cost of the remaining construction.”

 

PILOTS Unaffected by Taking on New Partner.

 

Cappelli indicated that the Westchester County Industrial Development Association had approved the concept of the partnership with JP Morgan Fleming Asset Management Thursday morning, because, Cappelli said, the nature of the project had not changed, “The County approved it this morning, we just evolved into a new partnership, and that does not affect the PILOTS.” Cappelli said.

 

 

Likes to be in the field.

 

WPCNR asked whether he was the Head Coach or the Quarterback under the new partnership arrangement with JP Morgan. The Super Developer chuckled and said he liked to be in the field and the quarterback doesn’t get “banged up a lot.”  Reminded that the Coach made more decisions, Cappelli refused to be drawn into the reporter trap play, refusing  to say whether he was the Coach or the Quarterback in the new partnership.

 

“I’m very happy with this partnership with JP Morgan,” he said, and indicated more partners were coming in on “The Triple Towers.”

 

THE TRIPLE TOWERS: Cappelli’s “Three Sculptures,” planned for 221 Main Street in White Plains. Site Plan is coming in Tuesday, Mr. Cappelli promises. Photo by WPCNR News.

 

More “Equity” to Come to Plow into “The Three Sculptures”

 

“There are two possible investment partners willing to commit two sums of $100 Million each in White Plains,” Cappelli said, towards the 221 Main, Cappelli Hotel and condominium project, he is now calling “The Triple Towers”.

 

He said institutional investors, including large equity funds and pension funds were seriously looking at investing these sums in the upcoming “Triple Towers” On Main Street.

 

“I am humbled, floored, at the interest (of major institutional investors) in White Plains,” Cappelli said. Asked if Donald Trump was still in the running to lay some money down, Cappelli, said the Trump interest was more an invention of the CitizeNetReporter than real, but he said it in a good natured way.

 

Site Plan for 221 Next, Then Financing.

 

At this point, Cappelli said he could not seek financing for the “The Three Towers” project until a site plan was approved, and the $40 Million in fresh equity from the JP Morgan deal announced Wednesday would enable him to move ahead on “The Three Towers” using his own equity.

 

The Super Developer said that the “Three Towers” site plan would be presented Tuesday of next week. He noted that Beyer, Blinder Belle architect Fred Bland (designer of the City Center North and South towers), would be brought in to design the Office Building and hotel.

 

Cappelli said it was good to use architects at what “they were best at” and Bland’s specialties, he said,  are office buildings and hotels.  His current architect on the City Center South Tower, Costas Kondylis, was a residential specialist, who he is tapping to handle the two towering condominiums above the planned hotel.

 

Reinvesting Profits in White Plains.

 

“I don’t want to come across as the bad guy here,” Cappelli said earnestly. “I know people hate me. I want them to know I am reinvesting in White Plains. All of the money (from the JP Morgan deal)  will be  reinvested into 221 Main Street. Any profit realized will go right into 221 Main Street, and that continues to show what I think about this city.”

 

Cappelli said he expected to start “The Triple Towers” in June and complete it in two and a half years, opening  in January of 2007.

 

City Center “Green Light” Meeting

 

Cappelli said he had been working 10 to 14 hours a day on both 221 Main and the City Center condominium restart. He said that on Friday morning he would be holding a “Green Light” meeting with twenty persons on his construction and engineering team, to begin again full scale construction anew on the City Center Condominium Tower on Martine Avenue. 

 

He said the delay the last two weeks was necessary to run power to the condo site from the North Tower. He said he expected Con Edison to run permanent power to the condominium tower within six months from the vault under Martine Avenue, at which time the building would be fully powered up.