White Plains Office Vacancy Rate was 11.9% In First Quarter

WPCNR DOWNTOWN DAILY. From Cushman & Wakefield. April 11, 2008: Vacancy rates in the White Plains CBD registered at 11.9%, up a full percentage point in the first quarter year over year. Much of the increase was a result of vacancies at Westchester One at 44 S. Broadway, which accounts for 50 percent of the vacancies in the city’s business district. Direct average rents last quarter in the White Plains CBD were $34.57 per square foot (psf), significantly higher than $30.29 psf reported a year ago, due to some office properties that are commanding in excess of $40 psf.


 


The news comes in a report released by Cushman & Wakefield Friday in its first quarter 2008 report for the Westchester County commercial real estate market indicating the market remained stable but slowed in terms of leasing activity, with a slight rise in vacancy rates and negative absorption. Direct average rents were up countywide.


 


Overall  county vacancy rates totaled more than 4.3 million square feet (msf) or a 15.3% rate, which was up from 14.4% at year-end 2007 and down from 15.6% one year ago.  Class-A overall vacancy rates registered at 17.6%, up from 16.6% at year-end 2007 and down from 17.8% one year ago.


 


 


Leasing activity totaled 348,074 sf, down from 507,574 sf last quarter and 395,995 sf same time last year.


 


Major deals that closed during the first quarter included APS Healthcare which leased 44,082 sf at Westchester One in White Plains; SAC Capital which leased 30,406 sf at 5 International Drive in Rye Brook; and Merrill Lynch which leased 26,131 sf at 2 International Drive in Rye Brook.


 


Overall absorption totaled negative 399,947 sf, down from positive 66,822 sf last quarter and 44,787 sf same time last year.


 


“Unlike certain markets across the country that are home to a high percentage of companies in the financial services sector, Westchester County will remain stable due to the assorted mix of businesses based here ,” said Jim Fagan, senior managing director and branch manager for Cushman & Wakefield’s Westchester and Fairfield County region.


 


Direct average rent countywide was up 4.6% year over year in the first quarter, to $31.40 psf, up from $31.38 psf last quarter and $30.02 psf one year ago.  Class-A rents registered at $31.92 psf, down slightly from $31.96 psf last quarter and up from $31.19 psf one year ago.


 


Rents are predicted to remain stable throughout the year, but tenant concessions are likely to increase as landlords recognize that opportunities to lease space will be flat. Countywide, the commercial leasing market is expected to slow in comparison to recent years, but activity will remain steady. The national credit crunch significantly slowed the investment sales market in the first quarter, with the number of buildings traded off from a year ago.


 

“Despite a national office market slowdown, we see stable pricing for both rental rates and building pricing over the next quarter or so before they start to escalate again,” Mr. Fagan said.  “There has been some cooling off, so are now in a mode of sustainable and more moderate growth

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County Executive Laments State of County–Introduces County Initiatives to Save

 


WPCNR COUNTY CLARION-LEDGER. From Westchester County Department of Communications. April 10, 2008: County Executive Andy Spano, pointing to the challenging economic times ahead for individuals, families, businesses and governments, promised that county government would continue to tighten its own belt to control taxes and would provide even more opportunities for shared services so local governments and school districts would also save.


 “Our nation’s economic problems are hurting our residents,” Spano said, as he delivered his annual State of the County Address Thursday. “I see the high price of milk in supermarkets and the increased costs of eating out – even at pizzerias. Rising utility rates and gas prices, mortgage issues and home foreclosures, college debt, the tightening of credit and the slow-down of the housing market. All these things weigh heavily on my mind and on the minds of the public.”


 




And so does the burden of high property taxes on Westchester residents, Spano said. While county taxes comprise less than 20 percent of a property owner’s bill, taxpayers care only about the bottom line.


“We all pay school taxes, town, village or city taxes, some pay special district taxes for fire protection, and of course there are county taxes,” he said. “When you put it all together, it’s one big tax bill. And all of us need to work in unison to reduce it.”


The county executive detailed a long list of efficiencies that the county has implemented and new cost-saving measures for the future. Some of these would help local governments and school districts by providing them with additional opportunities for shared services with the county.


But, he warned, “The only way there will be real property tax relief for our residents is if Albany declares a moratorium on unfunded and under-funded mandates imposed, not only on the county, but on our school districts and local governments as well.”


 


 Such action, he said, would help not only the county, but local governments and school districts.


 “There must be no new mandates, no expansion of current mandates and no cuts in state aid for mandated programs. State government must change the way it relates to the counties, municipalities and school districts,” he said.


The speech, delivered to the Board of Legislators in the Legislative Chamber at the County Office Building, White Plains, was Spano’s 11th  such speech as county executive and included an overview of county programs,  goals for the future and a commitment to maintain the quality of life for which Westchester is renown.


While his priority remains  “to make sure our residents are safe, secure and healthy,” Spano vowed to continue to do this in the most cost-effective way. “I want to be able to stand here each year and assure you that you are getting the best value for your tax dollar.”


 


COST EFFICIENCIES/SHARED SERVICES


The county government has been an active participant in the Westchester County Association’s Property Tax Reform Alliance, a network of school, business and government officials who are working locally on ways to reduce property taxes.


Building on existing shared services initiatives that have helped municipalities and school districts to add programs and reduce costs, the county executive listed various new ways they could benefit.    



  • The county will create a new shared procurement service that will save governments, schools and special districts some of the expenses of preparing bid documents as well as provide cost savings on actual purchases due to economies of scale.
  • A new section of the county Web site will be added to help encourage this sharing. County data will be on the web to help school and municipal officials select from already vetted lists of professionals like architects and engineers. There will also be information to help them purchase various items from green cleaning materials to  hybrid cars. The county will provide at no cost, or at its cost, traffic engineering studies, highway signage and the shared use of various facilities. 
  • The county wants to create a Local Government Investment Pool that could consolidate the investments of these different taxing jurisdictions to generate additional revenue for all by aggregating funds to get a better rate of return.
  • The county will continue to implement new cost-saving measures, large and small, in its departments. For example, the Department of Correction, to save staff  time and inmate transportation costs, has begun a telemedicine program with Westchester Medical Center, and video court conferencing with the Mount Pleasant Town Court. The Department of Finance is using electronic bidding and  paperless checks and more electronic transfers, reducing the costs of supplies, postage, labor and bank fees. At Playland, by purchasing eight leased or revenue-shared rides and reducing expenses, the county has cut the tax levy contribution by half in two years.
  • A large-scale performance management initiative continues. Each department will be continually assessed to see how it is doing and what it can be doing better, more cheaply or differently. These assessments will show how the department is meeting the needs of the public –  and this will be an important  factor in future budgeting decisions.

 


 “We face very challenging economic times. … It is a fact that when the economy is struggling more people rely on county government. Both residents and even businesses tend to count more on the services and information we provide – many without even realizing that it’s county government that’s providing them,” Spano said.  


For example, the departments of Emergency Services and Public Safety, respectively,  train firefighters and police officers for local municipalities. The Department of Environmental Facilities has been at the forefront of the county’s enhanced recycling efforts and the global warming campaign. And the Planning Department has led the way to tackle the issue of flooding and how Westchester should look in the year 2025.


Additionally, the Consumer Office has ongoing programs to assist homeowners facing foreclosure or massive credit card debt or dealing with an unsatisfactory home improvement contractor; the Health Department


launched a patient education program so people can get the best possible health care; and the Department of Social Services continues to collect record amounts of child support payments from “deadbeat” parents.


            He noted that there was a 6.3 percent increase in Bee-Line passengers last year, with more than 50,000 county residents relying on these buses. And more than 75 percent of Westchester’s residents use one or more of the county’s parks each year.  


 “ I am proud of what we have accomplished and what we will accomplish in the years ahead. We have a government that is honest, forward-thinking and cost-effective,” he said.


Spano said the county would pursue new initiatives to meet changing needs of the public. For example:



  • The county, through the Department of Consumer Protection, will institute a new personal financial education program. “I have spoken to seniors who have been targeted in financial scams. I have spoken to college kids, even teenagers, who are deep in credit card debt and can’t get out. I know that homeowners, having been enticed by exotic lending schemes, are now looking at the horror of foreclosure. And, I am aware that many low-income individuals find opening bank accounts intimidating. Personal financial education is a necessity in today’s world, and the absence of coordinated efforts to provide it is glaring,” he said.   
  • The county is launching Project Lifesaver, a partnership with county police, the Department of Senior Programs and Services and the Hebrew Home for the Aged, to help the families of patients with Alzheimer’s. Patients will be given a wristband that emits an automatic tracking signal; with the help of the Department of Public Safety, these patients may then be easily located should they wander off.  
  • The county will soon convene the first meeting of Spano’s Autism Advisory Council, that will work with the Department of Community Mental Health. Comprised of parents, professionals and educators, the council will make recommendations on how to correct gaps in services. “Parents of autistic children spend a lifetime of energy and effort, not counting the emotional and financial toll, trying to find the right programs, guidance and support to help their youngsters to be educated and their older children to be independent,” Spano said.
  • To follow up on the county’s efforts to reduce health disparities of minorities, the county in the fall will sponsor Westchester’s first minority health career conference, designed to encourage young minority students to become doctors or pursue another career in the health field.
  • This summer the county will launch Second Chances, a program designed to convince young people of the dangers of driving drunk or drugged. Using a little encouragement and a healthy dose of fear, the county’s Probation, Public Safety and Labs and Research departments have created a reality experience at the morgue.

 


Spano paused during the speech to recognize the members of the family of the late Staff Sgt. Courtney Hollinsworth of Yonkers, who was killed last September in Iraq.


“Each year, it has been my sad duty to remind our residents that the war in Iraq continues to touch families here at home in the most grievous and personal way,” he said.

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The Democrats’ Response on The State of the City: The People’s Agenda

WPCNR FOR THE RECORD. . April 9, 2008: At the Monday evening Common Council meeting, Council President Benjamin Boykin delivered a Democratic response to Mayor Joseph Delfino’s State of the City message. Here are Mr. Boykin’s remarks:



Common Council President Benjamin Boykin delivering the Democrat response to the State of the City Address Monday Evening. The text follows


Council President Ben Boykin


State of City Response – 2008


City of White Plains


The People’s Agenda


 


To our fellow residents.  I am pleased to provide Comments on the State of the City and discuss our People’s Agenda. White Plains is a great place to live, work and enjoy. We are committed to maintaining our suburban feel in our vibrant and growing city.


At our March 2008 Common Council meeting, we passed legislation to update our affordable housing policies to increase the set aside percentage and increase the developers’ contribution into the affordable housing fund for housing that is not included within the project.  This legislation provides flexibility to ensure that we meet the needs of those at lower incomes and those whose income exceed 100% of the County Median. One of the highest priorities of this Common Council is to increase the stock of new affordable housing. We will also ensure that commitments agreed to through legislation to build new affordable housing are adhered to in a timely manner.


We believe that open government and improved communications with our residents is important.  We recommend that all Common Council Meetings including work sessions be held in the Common Council Chamber. All voting meetings of the Common Council should be broadcast live or be taped and aired at a later date. The Common Council Chambers are in desperate need of upgrade with new technology such as flat screen tvs and interactive programming including webcasting of Council Meetings. The technology upgrades to our Common Council Chambers should be part of this year’s budget process.


An electronic message board should be installed at a strategic location in downtown to publicize special civic events or items of public safety and information. In addition, we should evaluate and, if feasible, implement a system similar to the 311 that has been highly successful in New York City. This non emergency system could be another way to increase communications with our residents. The city’s website must be constantly updated to provide our residents with timely and pertinent information.


We plan to continue to reinvest in our city. All development proposals must be consistent with the needs of our residents and reflect the vision of our city. We will carefully analyze all facets of development proposals including infrastructure needs, environmental issues, open space issues and impacts on our neighborhoods. We realize that the economic slowdown may have significant adverse impact on approved and new projects.  


We must maintain our fiscal integrity and strength. The reinvestment in our downtown has provided nearly $14.0 million in property taxes and PILOT payments. Of this amount, approximately 61% has gone to our school district, 18% to Westchester County and 22% is included in the city’s budget. We have seen a significant increase in sales tax collections over the last several years. Our property taxes are among the lowest in Westchester County.


Our city has an outstanding workforce and we thank them for their service to our residents and visitors to White Plains. Personnel costs is our largest budget item – approximately 75% of the general fund expenditures. The key to our city’s long term financial health will be the management of personnel costs including the ever increasing health insurance costs.


We are pleased that the Open Space Acquisition Committee has been restarted. We expect that this committee will identify properties for acquisition as well as city owned property that should be returned to the tax rolls. At this time we strongly recommend the Committee’s immediate consideration of a privately held parcel at Orchard, Chadwick, and Bernard streets. This unique location near our reservoir and watershed area is inconsistent with development. The Common Council needs to add to our open space inventory.


We believe that quality of life issues must highlight our People’s Agenda. Overcrowding and illegal housing are health and safety issues that must be constantly monitored and addressed to protect our neighborhoods. With the growth of our city, pedestrian safety, traffic and excessive noise have become issues that we must address even more vigorously than in the past. We recommend that these issues, which are inter-related, be given a high priority on the Administration’s agenda.      


There are several projects that have been discussed but do not appear to be moving forward.  We want Veterans Park to become a priority and completed. In addition, we need to move forward to redevelop the Lexington Avenue Corridor, one of our important gateways.


We have an aggressive agenda for the people of White Plains. We are willing to work with the Administration in a collaborative manner to enhance the quality of life for our residents.


Thank you.

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County Directs Stores to Recycle Their Plastic Bags Provided Consumers

WPCNR County Clarion-Ledger. From Westchester County Board of Legislators. April 8, 2008: The County Board today unanimously approved a local law that establishes an at-store recycling program for plastic bags. The law applies to retail establishments of 10,000 square feet or more that provide plastic carryout bags to customers. The measure will take effect six months after enactment.



 


 


 


In advocating for legislative approval,  Environment and Energy Committee Chair Thomas Abinanti (D, I, WF-Greenburgh), cited irrefutable evidence that plastic bags wreak havoc on the environment and “attach themselves to everything from tree limbs to store canopies to sewer drains.”  Abinanti noted that 500 billion to 1 trillion plastic bags are used worldwide, the United States distributes 100 billion plastic bags alone and that such bags can take 1,000 thousand years to decompose.


 


Legislation Committee Chairman Bill Burton (D, I-Ossining) said the new measure was a good thing for the retail and plastics industries to work together and is a “win-win situation” for the environment.


 


Chairman Bill Ryan (D, I, WF-White Plains) commented that the measure was consistent with other  proactive initiatives the Environment & Energy Committee has introduced that “improve the environment for the one million people in Westchester County.”


 


As part of the law, which adds Chapter 828 to the Laws of Westchester County, residents will also be given the opportunity to recycle plastics bags on Household Recycling Days throughout the year.


 

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