Appeals Court to County: Landlords Can’t Reject Sec. 8-ers on Income Source

WPCNR WHITE PLAINS LAW JOURNAL. April 5, 2013:


The Second Circuit Court of Appeals today upheld a ruling by the U. S. District Court that landlords may not consider source of income as a means test to reject Section 8 tenants in county-created affordable housing units in compliance with the Department of Housing and Urban Development housing settlement.


County Executive Robert P. Astorino had this reaction to the ruling :


Obviously, I am disappointed with the ruling by the Second Circuit of Appeals, and as with every action I have taken with respect to the 2009 federal housing settlement entered into by my predecessor Andrew Spano, I will comply with the law and continue to take principled stands on behalf of the people of Westchester


My objection to source of income legislation has never been about the Section 8 program, which provides vouchers to supplement the rent of low-income residents. My objection has been turning this worthwhile voluntary program into a mandatory one that would compel every owner of a house or apartment to do business with the federal government – and take on all the rules and regulations that entails – upon a tenant’s presentation of a Section 8 voucher. I also felt that the source of income legislation would be detrimental to the housing settlement because it would act as a disincentive for developers to build affordable housing.



The county is already in compliance with the ruling because the Second Circuit in taking on the appeal never granted the county a “stay” from the lower court ruling, which it has now affirmed. As part of that compliance with the lower court order of Judge Denise Cote, I asked the county Board of Legislators back on August 31, 2012 to reintroduce the source of income legislation that had previously been before it. The matter is now in the hands of the Board of Legislators.


Westchester County Board of Legislators Chairman Ken Jenkins (D-Yonkers) released the following statement today in regard to the U.S. Court of Appeals decision to uphold the judgment by the U.S. District Court that the County was in violation of its duty to promote Source of Income legislation as part of its fair and affordable housing settlement with the U.S. Department of Housing and Urban Development:



“All along, the Board of Legislators has been urging County Executive Astorino to comply with the law and follow all of the stipulations of the housing settlement, as he promised to do when he first took office. Today’s Court of Appeal’s decision, which centers on the County Executive’s stubborn refusal to promote Source of Income legislation, puts the County at significant financial risk, through its non-compliance, and threatens to upend the settlement.



“The Board of Legislators remains committed to working with the Astorino Administration to further fair and affordable housing in Westchester and fulfill all of the requirements of the housing settlement.



“The time to act is now, though.



“The County Board voted to direct the County Executive to submit his version of Source of Income legislation. Today’s decision should provide the necessary impetus for County Executive Astorino to introduce new Source of Income legislation for the Board’s consideration and resolve this major issue, before Westchester suffers further consequences from the County Executive’s non-compliance with the law.”

Posted in Uncategorized

Sustainable Playland Not Sustainable Yet, Say Democrat Legislators.

WPCNR COUNTY CLARION-LEDGER. From the Press Secretary of the Westchester County Board of Legislators. April 4, 2013:


Reaction to the Sustainable Playland-Westchester County proposed final agreement announced today by the County Executive Robert P. Astorino has just been released in this statement:


Several members of the Democratic caucus of the Westchester County Board of Legislators (BOL) stated today that they are not ready to support County Executive Rob Astorino’s proposed asset management agreement with Sustainable Playland, Inc. (SPI) to run Playland, the County’s 280-acre amusement park and recreational facility.


They cite  reasons they are opposed:





“At this point, I’m not at all convinced that Sustainable’s weak financial proposal and its plan to tear down a large part of Playland are in the best interests of County residents and taxpayers,” said Legislator Bill Ryan (D-White Plains). “I’m disappointed the County Executive is determined to force through this very questionable arrangement. No one should kid themselves: What the County Executive wants will be the beginning of the end to our historic Playland Amusement Park as we have known and enjoyed it over the years.”


“The Astorino Administration said its goal was to stop losing money at Playland, but Sustainable is not the way,” said BOL Majority Leader Pete Harckham (D-Katonah). “From what we have seen and heard during numerous committee meetings held on the subject, Sustainable is the least competitive financially. But most importantly, this agreement essentially privatizes County parkland, and so residents will be charged to use ball fields. If ball fields are the goal, our parks department has built ball fields all over the county. We should not be privatizing this process and allow a private company to charge residents to use public parkland.”



“I’ll support new and innovative ideas to Playland, but I’m worried that Sustainable Playland will not adequately protect Westchester taxpayers,” said Legislator Catherine Borgia. “Sustainable’s proposed plan has the riskiest financial and marketing plan of the four we have examined, and its potential for failure cannot be overlooked, especially since it has the least amount of secure financial backing.”



“The deal with Sustainable is a bad one for a simple reason: It will destroy Playland rather than enhance it,” said Legislator Alfreda Williams (D-Greenburgh). “I’m not opposed to an outside group investing in and running Playland. But I cannot support any proposed agreement that throws away decades of taxpayer dollars as it tears down County assets, removes rides and replaces parking spaces with ball fields. This won’t improve the quality of life here in Westchester at all. In addition, this group cannot substantiate whether it can maintain any management agreement they sign.”



“It is obvious that Sustainable Playland is more interested in turning this historic, fun amusement park for kids and families into an exclusive club for the well-connected,” said BOL Vice Chair Lyndon Williams (D-Mount Vernon). “Also, the fact that this proposed agreement will eliminate more than half the rides means that hundreds of summer jobs for county youth will be lost as well. I cannot support this, especially at a time when youth unemployment is reaching dire levels.”



“To do what is right for Westchester at Playland, we must, first, make sure the park is on solid financial footing, both operationally and in terms of capital investment; and two, maintain it as a destination that everyone in Westchester County can visit and enjoy,” said Legislator MaryJane Shimsky (D-Hastings-on-Hudson).


 “I have grave doubts about Sustainable Playland’s ability to guarantee either. Their proposal is financially risky, and instead of signing this management agreement, the County Executive should begin serious negotiations with one of the other Playland finalists, all of whom have experience in running amusement parks and cash on hand for massive investments in the park’s future.”



“The best course of action is to ensure that a complete solution at Playland is developed,” said BOL Chairman Ken Jenkins (D-Yonkers). “Right now, the proposed agreement with Sustainable is premature.”


The release outlined where the Board stands on approval now:


First, the BOL Democratic caucus has yet to receive a copy of the asset management agreement from the Astorino Administration, even though the document delineates the “role” of the BOL in the approval process necessary to reshape Playland. As a result, the caucus members refrained from commenting directly on the details of the agreement.



What troubles the Democratic BOL caucus, according to the news release however, is that the legal issues regarding whether an “asset management agreement” between Sustainable Playland and County Executive Astorino is valid under the County Charter. An upcoming meeting of the BOL’s Committee of the Whole will continue to address this.



In the meantime, the BOL is still in the midst of its due diligence of the four top proposals. Legislator Catherine Borgia (D-Ossining), chair of the BOL Government Operations Committee, has been holding a series of meetings regarding the different merits and problems associated with the top four proposals made to “reinvent” Playland. Also, an audit of the four proposals is soon forthcoming.


Posted in Uncategorized

The Nuts and Bolts of How Sustainable Playland Will Run Playland



WPCNR County Clarion-Ledger. From the Westchester County Department of Communications. April 4, 2013:


 


Under the agreement announced today at a noon press conference held by Westchester County Executive Robert Astorino, Sustainable Playland will be responsible for the operation and maintenance of both the amusement area and the surrounding 100 acres of parkland.


 


Proceeds to pay the county, maintain the grounds and make improvements will come from equity investments from the operators, fees SPI charges its operators, revenues generated by the attractions run by the operators, and other revenue such as parking and sponsorships.


 


 The park will be open year round with no admission fee and access to Edith Read Wildlife Sanctuary, the Boardwalk and the Pier will also remain free. Access to the beach is open to all, subject to fees (similar to those that already exist).


 





“The SPI plan is designed to preserve, restore and enhance the historic character and qualities of Playland, including the historic amusement rides, the classic buildings and the landscape,” said Kim Morque, new president of SPI. “Our vision is to have a beautiful park that capitalizes on its unique waterfront location and offers year-round activities and entertainment to attract individuals and families from across Westchester and the region. Our public-private partnership model is being used successfully nationwide and provides the opportunity for a long-term approach to assuring Playland’ s viability for generations to come.”


 



Playland is scheduled to open for the season on Saturday, May 11. For the 2013 season, it will be run, as in the past, by the county’s Department of Parks, Recreation and Conservation, subsidized with county funds.


 


For the future, plans call for six zones to operate within the park:


 


· Amusement Zone: Playland’s historic rides will remain, including the Dragon Coaster and the Derby Racer, as well as Kiddyland and arcade games. Some existing rides will be removed while new rides will be added as part of an ongoing program to upgrade the amusement area.


· Aqua/Beach Zone: Playland’s beach and pool area will feature more amenities, including chair and sun umbrella rentals, cafés and activities such as water slides and floats.


· Field Zone: There will be a field house for indoor sports, plus outdoor athletic fields for soccer, lacrosse and other sports.


· Fountain Plaza Zone: This area will feature year-round restaurants, cafes, outdoor dining, special events as well as the Ice Casino.


· Great Lawn Zone: This area will feature the Central Promenade, which will remain open to the public year round, as well a picnic shelters, seasonal music and dance performances, a variety of special programming and the historic Grand Carousel.


· Common Area Zone: This encompasses “everything else” within the park’s footprint, such as parking lots and the lake, shore and beach leading to the Edith Read Wildlife Sanctuary.


 



With the asset management agreement complete, it now goes to the county’s Board of Acquisition & Contract for approval, which is expected later this month. Today marks another significant step forward in a process that began in 2010 when Astorino moved to ensure the future viability of the park, whose attendance figures have dropped from over 1 million in 2005 to 430,000 in 2012 and whose losses have been costing county taxpayers $3 million to $5 million annually in recent years. (Editor’s note: fees were raised substantially by county,


 


In 2011, 12 companies responded to a county request for proposals (RFP) to “reinvent” the park. These proposals were carefully reviewed by the county and a 19-member Citizens Advisory Committee. 


 


The Committee included three members of the Board of Legislators, two Democrats and one Republican. Sustainable was chosen last October because it had the best vision – financially and operationally – as well as far-reaching experience and strong local ties. Since then lawyers for the county and SPI have been working out the details of the asset management agreement.


 



Highlights include:


· SPI will pay the county a base fee that could eventually total $4 million, provided all zones become operational as planned. SPI will also make annual payments to the county based on the park’s net operating revenue. SPI estimates this to be about $1.2 million per year once the park is fully developed. All of the SPI payments will go toward retiring the county’s existing debt for Playland of approximately $35 million.


 


· SPI will amend its bylaws to include on its Board of Directors a representative of the County Executive and a representative of the Board of Legislators, as well as a resident of the City of Rye. The county Parks Commissioner will also sit on SPI’s board.


 


· SPI must develop an “improvement plan,” which outlines the material changes it plans to make to the park as the new operator. The County Executive and the Board of Legislators must both approve the improvement plan before the changes go into effect.


 


· The agreement between the county and SPI is for 10 years and can be renewed for an additional 10 years with the approval of both parties. In addition, the agreement recognizes that SPI may enter into subagreements of up to 20 years with its vendors, subject to the approval of the county’s Board of Acquisition & Contract.


 


· The county may terminate the contract upon six months notice “for cause,” which would include breaches such as payment defaults.


 


· The contract contemplates that all the necessary approvals will be in place by Oct. 1, which is the scheduled commencement date of the agreement. However, if all approvals are not in place by Jan. 1, 2014, including those by the Board of Legislators for the improvement plan, SPI has the right to terminate the agreement.


 


“The contract was written to follow the county charter and respect the roles and responsibilities of both the executive and legislative branches,” Astorino said. “I welcome the Board’s due diligence, but it must be done in a timely fashion. We also need to respect our partners at SPI, who are putting themselves at financial risk by investing $34 million of their money to save Playland. Unnecessary delays will put the future of Playland in jeopardy.”


 






SPI is a not-for-profit holding company, which has assembled an experienced and highly regarded team of operators to run each zone. SPI’s not-for-profit status gives the company access to low-cost financing and means that money after expenses will be invested back into the park.


 


Overseeing the overall management of the park for SPI will be Biederman Redevelopment Ventures, headed by Dan Biederman, a Chappaqua resident whose experience includes co-founding and managing the Bryant Park Corporation, the 34th Street Partnership, and heading major efforts nationally to bring private resources and management techniques to work on public problems.


 



“The SPI plan will allow visitors to enjoy both amusement park rides and a passive park experience with beautiful views of Long Island Sound,” said Biederman. “We will bring private-sector techniques and diverse revenue streams to bear on the problems that have made Playland unaffordable for the county government.”


 



The operating team being assembled by SPI includes:


 


· Amusement and Aqua Beach Zones: Steve Turk and the Mega Funworks Team. Capital investment upwards of $7 million.


· Field Zone: John Abate and Eric DeGraw of Playland Sports Center LLC. Capital Investment $12.4 million.


· Fountain Plaza Zone: Shane Coppola of American Skating Entertainment Centers. Capital investment $600,000.


 



The county will ensure the park is in a condition that is satisfactory to SPI prior to the commencement date, when SPI will assume responsibility for management and operations of the park. Repairs to the boardwalk, Ice Casino and other parts of the park damaged by Superstorm Sandy are currently being made by the county as the owner of the property.


 



Timetable


 



Following is an approximate timetable of some of the key dates, which are generally dependent on earlier events happening on schedule:


 



April:


 


· Approval of the asset management agreement by Board of Acquisition & Contract is expected in mid-April.



 


May:


 


· Playland opens for the 2013 season on May 11, under county management.


· Within 30 days of the approval of the asset management agreement by the Board of Acquisition & Contract, SPI must submit a Playland Improvement Plan (PIP), consisting of the material changes the group proposes to make when the park comes under its management.


June:


· The County Executive’s office is expected to receive SPI’s improvement plan. Following the County Executive’s approval, the PIP will go to the Board of Legislators for its approval.


October:


· Commencement date – when SPI takes responsibility for operations – is scheduled in the contract for Oct. 1, 2013. This date may be extended based upon receipt of required approvals. However, if commencement is delayed beyond Jan. 1, 2014, because the BOL has failed to approve the Playland Improvement Plan by then, SPI has unilateral right to terminate agreement.

Posted in Uncategorized

Agreement on Playland Closer, Not Signed.Dotted I’s, Crossed T’s Contract Reache

WPCNR COUNTY CLARION-LEDGER. From the Westchester County Department of Communications. April 4, 2013:


 


Contrary to previous reports, a contract between Westchester County and Sustainable Playland has not been signed.


 


The two entities have, though, reached a 10-year agreement with an option for an additional 10 years to run Playland beginning in October this year.


 


            Once signed and fully executed, the “Asset Management Agreement” will shift responsibility to SPI to operate, manage and maintain the county-owned park as of Oct. 1, 2013, assuming the new operator has obtained all of the approvals and permits that are required, including any needed from the county Board of Legislators. 


         


 




Posted in Uncategorized