Council Shocked,Nevertheless PILOTS Weisz Project at Tailored Assessment to 2016

WPCNR COMMON COUNCIL-CHRONICLE EXAMINER. By John F. Bailey. October 25, 2007 UPDATED 8:30 A.M.: Robert Weisz of the RPW Group, the office building evangelist who has made millions creating “born-again buildings” coaxed a ten year PILOT from the City of White Plains last night on his latest reclamation project, the former IBM property at 1133 Westchester Avenue, where he plans to build an extended stay hotel. (The hotel is not part of the PILOT agreement.)  Thursday evening’s matter was to present the PILOT to the Council to see if they had an objection to it.



Rita Malmud, the Council President, was flabbergasted when she learned the Weisz PILOT had been granted by the County IDA last spring, and the council was not told of its existence. No other councilperson batted an eye. 



Mr. Weisz came before the council to inform them of the PILOT, and the White Plains Commissioner of Planning explained the circumstances of the PILOT. 


Now Wait a Minute….


 



When Ms. Malmud, in purple sweater, looking at Corporation Counsel Edward Dunphy, indignantly raised a ruckus to Ms. Habel (standing left) with Lloyd Tasch, City Assessor to her left,  and the Mayor as to why the IDA had not informed the city the IDA had granted Mr. Weisz a PILOT, Edward Dunphy said the city had been informed, asking the Mayor, “Isn’t the IDA obliged to let the city know?”


Mr. Dunphy answering for the Mayor,  said, “We were noticed.”


At that point, Ms. Malmud’s eyes widened and became small and incredulously Malmud asked Mr. Dunphy why the council had not been told. Dunphy said, “it’s not a legislative matter.”


Dunphy explained that the council’s role is not to approve PILOTS but they have the opportunity to object to them.  Malmud asked, what happens if they object. Dunphy said, “well, you would stop the project.”


Malmud appeared somewhat mystified by this and asked if the School District had been told.


Board of Ed informed before Council


Ms. Habel  said the White Plains Board of Education had been informed of the assessments of the PILOT the previous Wednesday evening (before the Common Council even learned of it Thursday evening).



Mr. Weisz (left) with City Assessor, Lloyd Tasch,  explained that he needed a PILOT on the project to attract a major corporation to rent the facility as its headquarters, which he said was now 80% vacant. He could not sign the corporation he is courting to a longterm lease without assuring them of their longterm costs, and this was the reason for the PILOT, which would stabilize the lease terms.


The PILOT, Weisz said was also necessary for him to recoup his costs of renovating the headquarters with a restaurant, a day care center, a spa, and other amenities.


Tasch Exclaims How Income from property is figured


Lloyd Tasch, City Assessor then took the floor and explained how the PILOT was created. The PILOT  assesses 1133 in the first year at $1.8 Million of assessed value (it’s sale price), and goes out to 2016 at which point it is assessed at  $3.2 Million.


Weisz said he actually felt this PILOT was over assessed because the building is now worth less than it was fifteen years ago, but he would accept it because it was essential to signing his corporate prospect. Mr. Tasch corrected Mr. Weisz and said that the building was worth more now than it was 15 years ago. Tasch took Weisz’s rental of $24 a square foot  for the 100,000 square foot building, to begin the PILOT and gradually raised this to $31.50 a square foot during the course of the PILOT. out to 2016.


 



Councilman Benjamin Boykin after learning of the PILOT assessment, stressed that assessments on commercial property were determined by Income Value of the property, not market value, and wanted the media to get this across to the populace.  Mayor Delfino added that in all the development in his administration the city had never given “tax breaks” to a developer. Ms. Malmud gently corrected the Mayor that the city had given tax breaks to affordable housing projects. The Mayor agreed.


Dunphy Gives a Little Bit of Bad News 


Mr. Dunphy noted that PILOTS were actually a good thing because coincidently 9 West was going off the tax roles and would pay less than it was paying on a PILOT. The reason for this was,  Mr. Dunphy said,  the state had just lowered the  Equalization Rate which would have the effect of lowering 9 West’s tax below their previous PILOT payment.


Mr. Weisz said the corporation he was courting for the space would bring in 2,000 jobs and said this would be a great benefit to White Plains.


Previously during all the time 1133 was approved for renovation by the council and has been renovated, Mr. Weisz had never mentioned the existence of a PILOT or request for one to the Council’s knowledge.


Mr. Weisz left with the council not objecting to the PILOT.

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Performing Arts Center In the Money. $600G’s Raised. Breakeven Forecast.

WPCNR STAGE DOOR. By John F. Bailey. October 25, 2007: John Ioris, Chairman of the Board of Trustees of the White Plains Performing Arts Center predicted a rosy future  for the Arts Center to the Common Council in Year 5 of its existence Thursday evening .  He reported the theater has sold 723 Subscriptions to the Theatre’s four shows: Man of La Mancha which opens November 29 featuring the Tony-nominated actor Robert Cuccioli in the Don Quixote role, which will play through December 16;  Ragtime, Feb. 1 to 3, Ain’t Misbehavin (February 28- March 16), and How to Succeed in Business Without Really Trying, April 24 to May 11.



Robert Cuccioli to create Don Quixote on White Plains Stage.


Photo, Courtesy, WPPAC


Ioris told the Council the organization had raised $650,000 in new funds, paid off $50,000 in debt and a substantial debt to one individual. Ioris said he expected the operation to break even in the 2007-2008 season with productions of four musical shows supplemented by its Renaissance Theatre Academy productions (which he said had sold out over the summer), rentals, and children’s performances, and touring shows. He promised enhanced sets like the elaborate design commissioned for November’s Man of La Mancha,  upgraded production values, big names, Broadway style casts that will distinguish WPPAC productions this season.


 




 John Ioris, seated, The Chairman of the WPPAC Board of Trustees  told WPCNR his overall production budget was between 1 and $1.5 Million, the major portion invested in mounting the musical productions, which he said a survey of WPPAC patrons indicated they preferred. Ted Peluso, financial advisor, Treasurer to the WPPAC is on the right. 


Enter Mr. Cuccioli


Ioris announced the theatre had signed Robert Cuccioli, the Tony nominted actor, star of Jekyll and Hyde to play the role of Don Quixote in the Man of La Mancha extravaganza. Mr. Ioris said the show would cost $225,000 to produce as would the How to Succeed in Business production. Ioris said the theatre is committed to staging major musicals with the scenery and cast sizes those productions demand. He reported 650 persons tried out for the Man of La Mancha casting call in New York and 80 tried out in White Plains. The show will carry a cast of 21 persons, 11 Equity Actors, and 10 others, including 2 local residents from White Plains, and live orchestra. He even showed the elaborate set design prepared for the show.


 


Opening Night Galas After Every Musical.


Ioris announced a new fundraising endeavor this year. Instead of creating a separate gala every year, he said the theatre would promote 4 post-production Opening Night Galas at posh restaurants donating their fare to the theater after each musical’s Opening Night. The Man of La Mancha Gala will be held at Legal Seafood in White Plains.  Another Gala will be hosted by Ruth’s Cris Steakhouse in Tarrytown. At these Arpres Show Galas, showgoers may mingle with and meet the actors and enjoy the high life.


The Chairman told the Council the theatre would have an elaborate Playbill this year for each show, for which they have sold $70,000 in advertising. He said they would devote 10% of their budget to advertising.


Malmud Requests Budget


Councilperson Rita Malmud who had asked for the progress report on the theatre, asked if she could see the detailed budget for 2007-2008. Theodore Paluso, who is the accountant for the theatre, promised the council a fabulous year, and said there had been an unbelievable turnaround. He said he would get it to the council in a couple of days.


Ioris attributed the turn around to severing the relationship with Helen Hayes Theatre Company last year and staging no productions the first half of 2007, which allowed the theatre to breakeven without a loss. He anticipated a breakeven year this year.


Ioris distributed an attendance sheet that said the theatre had attracted 79,308 paying patrons in its first four years:


2003:   4,968


2004:   27,301


 2005: 28,841


2006 (6 months): 18,316


Total: 79,308


A survey of patrons yield information that average WPPAC theatre goer was between 50 to 64 years old, with incomes over $75,000 a year preferred musicals, comedies and dramas in that order, and prefer to see recognized performers from Broadway. This is why the theatre has programmed musicals in a grand production style.


A New Look


He said the organization had refurbished its entrance with a $50,000 gift from Entergy, the nuclear power corporation, installing an electronic crawl that Ioris said makes audiences more aware the theatre is there. Councilman Glen Hockley suggested again that an outside marquee on Mamaroneck Avenue would make the theatre more visible tothe community. WPCNR notes this has been suggested since the theatre first opened in 2003. Ioris said he would explore that.



The Makeover: A new entrance has been designed at a cost of $50,000 with an electronic “crawl”


Ioris attributed the fast start and massive fundraising to the generosity of the White Plains business community who has stepped forward.


Complete Sellouts Needed to Keep Pace Production Costs.


The angels of White Plains will have to continue to step forward.


The musicals, he said would be high budget affairs with Ain’t Misbehavin and Ragtime produced for less than the $225,000 he expects to spend on the Man of La Mancha and How to Succeed shows.


Day to day rentals and educational programs of the theatre, and, of course, fundraising will have to account for inevitable shortfalls, because even if every night of all four musicals sells out all 410 seats – the musicals appear to lose money. Man of La Mancha for example if every seat of every production is sold will earn approximately $200,000 against its $225,000 cost.  The detailed budget plan will most likely explain the financial plan for the theatre.

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1/2% Sales Tax Request Tabled Til After Election. Equalization Rate Plummets.

WPCNR COMMON COUNCIL CHRONICLE EXAMINER. October 25, 2007: The resolution calling on the state legislature to increase the city sales tax ½% was taken off the table by Council President Rita Malmud tonight, then immediately tabled until the work session November 20 after the city Common Council election. The city also announced the state equalization rate by which commercial assessments are determined has declined double the rate of last year’s used to figure this year’s tax roll.


The retabling of the sales tax measure was done despite having received the city projections going out to 2011 which were available for discussion as the Common Council and Assemblyman Adam Bradley had requested, and have been available for two weeks.  


Ms. Malmud gave no explanation of why the matter was tabled again, or why the council could not explore any questions on the projections they might have Thursday evening. Neither she nor any of the Common Council indicated any concerns they might have that the sales tax might not be needed due to the rosy projections of the balanced budget the three year “outcast” provided to the New York State Department of the Budget.


However, those three year budget projections may need rethinking  in terms of  property tax increases with the announcement of a decline in this year’s Equalization Rate which Corporation Counsel Edward Dunphy reported during the meeting.


In an interview with Mr. Dunphy and the Mayor after the meeting, Dunphy said the equalization rate assigned White Plains for this year has been delivered and the rate, used to calculate commercial property assessments has taken another nosedive bottoming from 3.24% to 2.69%. This will have a jarring lowering of White Plains commercial assessment rolls in the next budget year, Dunphy told the CitizeNetReporter.


In the 2007-2008 budget year, the equalization rate declined from 3.54% to 3.24%, just .30. The new decrease of .55 could have an serious lowering effect on the Total Assessed Valuation in the city. The .30 decline of 2006-2007 resulted in a $6.2 Million decline in assessed value in the city from 296.1 Million to $289.9 Million.


Dunphy and Mayor Delfino said the city was going to appeal in the courts on this rate. Dunphy said It is only the second time Dunphy said the city will attempt to appeal the rate. Previously the city was able to use the previous year’s rate ecause the state voted on the rate by telephone which was prohibited by law.


Delfino during the Common Council meeting, said the state sets the rate based on only a handful of properties (33) in the city, and as home values go up, the equalization rate goes down. This year’s equalization rate will be based on housing values of 2005, when values were going up and not leveling off as they have in 2006- 2007, so Delfino reasoned White Plains would not see the relief of stabilization of home prices (which would keep the equalization rate where it is)  for several years.

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District Suggests $70,000 Replant of Decimated Woods at the High School

WPCNR SCHOOL DAYS. By John F. Bailey. October 24, 2007: The engineering consultant commissioned by the school district to review options for rehabilitating the White Plains High School woods that were arbitrarily cut down by order of the district manager of buildings and grounds to build ballfields in August reported to the Board Wednesday evening. He said that in his opinion the soil was not contaminated and that the replanting of the woods, demanded by Haviland Manor residents who look out on the desecrated area (now a forlorn field of stumps), could be achieved by planting 15 trees about one foot high in the center of the meadow portion,  and 10 to 12 foot evergreens ringing the meadow area.  The cost of the restoration was estimated at $70,000.



The Wipeout of the Woods. August 7, 2007. WPCNR File Photo



“`Proposed Rehab Plan of Wiped Out Woods Presented Wednesday Evening. North is at the top of the landscape plan. Plan consists of 15 small 12 inch plantings of trees in the center with meadow grasses, surrounded by planting of approximately 25 – 12 foot evergreens surrounding the center meadow as a visual buffer presenting to Havilands Lane, bottom of picture.


Superintendent of Schools Timothy Connors said that if the board approves the plan the rehab/replanting could be executed in November.  Assistant Superintendent for Business, Fred Seiler, said he estimated the total cost of the removal of the trees, the engineering and landscape design and cost of new trees would be $70,000.


Glen Watson of Badey & Watson gave the opinion that the operation would not require an Environmental Impact Statement and approval of the Department of Environmental Conservation before they would start. He said that by filing what he called an Environmental Assessment Form describing the work they were going to perform on the field, and if the DEC felt the project required their further review, the DEC could intervene and review it.  Watson also wrote SEQRA was probably violated by the original ripping out of the woods, and that a Stormwater Pollution Plan is required. He assured the neighbors to the site that “there is no anticipated effect on drainage patters across the site.


Alan Teck, the conservationist, one of the neighbors living adjacent to the violated site, said the neighbors in attendance were realistic and “reconciled in varying degrees of happiness” with the district solution.  He said that Superintendent of Schools Connors agreed persons executing the rehab view the site from the various properties of neighbors affected by the views to position trees for maximum shielding of the high school campus view from their yards.


Teck thought that was a positive.  Teck observed that the rehab “does not come close to restoring what  was there.”  He said, “Everybody (neighbors) realizes that the ambience of their homes is decimated and is being decimated. This is a compromise.” He recognized the district had limited resources and “there’s no way they could replace what was there.”


Teck did have a problem with the 12 foot evergreens and the slopes of the site and said that needed to be relooked at, saying that a tree on a slope does not provide as much height to screen the project because it is on a slope.


Bill Pollak, School Board member observed that the school district and the neighbors being put in this situation, “seemed so unnecessary to me.”

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