Commercial Assessment Ratio Initiative Awaits Senate Verdict on Cert Relief

WPCNR QUILL & EYESHADE. By John F. Bailey. June 1, 2007: A06069, The Bill that would establish a separate Commercial Assessment Ratio for commercial property in Westchester County awaits a greenlight from the New York State Senate, Assemblyman Bradley told WPCNR today.


“I’ll prioritize it, if Suzi (Openheimer, State Senator), tells me there’s a chance of moving it in the Senate,” Bradley told WPCNR.



Asked when this would happen, Bradley said the Assembly had a very long calendar and it would probably be put on the debate list.  He said unless Ms. Oppenheimer tells him the Senate will pass it, he will not move to take it off the debate list and bring it to a vote in the Assembly in  June. Though, he thinks it will “probably” happen.


“I have the power to bring it off the debate list in June, and bring it to a vote, if I think it has a chance of passing,” Bradley said.


The bill has been endorsed by the Westchester Municipal Officers Association, and the Westchester Assessors Association. As written, the bill establishes a separate commercial assessment ratio for commercial property in Westchester County, and only Westchester County.  The effect of the separate commercial assessment ratio would take the value of residential property out of the equalization rate that has lead to the rash of certiorari refunds that have cut the White Plains assessment roll from $450 Million in 1989 to $289 Million  in 2007, according to the White Plains City School District.


Including the residential property in the computation of the Equalization Rate lowers the rate at which commercial property is taxed resulting in certiorari suits that White Plains (and other county cities) has elected to settle over the years rather than fight the suits and pay costlier settlements if the city loses.


Assessors interviewed by WPCNR said the effect of a separate commercial assessment ratio would assesss commercial properties fairly and not artificially lower their value. If enacted one assessor, speaking on condition of anonymity said that it would slow the rate of ceritoraris in coming years, but result in request for reassessments, since cities do not automatically reassess as a result of a lowered valuation. This happens, the assessor said, in the present certiorari suits.


The assessor told WPCNR that eventually the loss in tax revenue from adjusted assessments would have to be made up by other revenue sources, as they are absorbed now by residential property owners, but at a slower rate, stabilizing the sharp rise in residential property owner taxes that have escalated due to the certiorari refunds in recent years.


This analysis would have the effect, it would seem,  of making Westchester County very attractive for developers to build in Westchester County or companies to move to Westchester and buy Westchester properties because of the “fairer” assessment their new buildings would receive in Westchester, rather than elsewhere. Given this explanation, while slowing certiorari suits, the bill would appear to create a property tax cut for commercial property owners as well as potentially more manageable tax increases for residential property owners, maybe.

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Szabo’s 2 Run Blast Stuns New Ro, 2-0 in 9 The-a Tigers Win. Into the Finals!

WPCNR FLASH. May 31, 2007: This just across the wire from New Rochelle. The White Plains Tigers ousted New Rochelle out of the Section Class AA SoftballTournament with an extra inning win today completed moments ago 2-0.



With Sandra Mastrangelo aboard on an extra base knock, Tiger Shortstop Dani Szabo crushed a Jillian Schonberg pitch just a little too fat in the 9th and tagged it high and far and way deep into the Huguenaut’s  endless billiard-table synthetic turf outfield where the ball  never stops rolling.


 The desperate relay was not in-time and Szabo crossed the plate for a 2-0 lead. Our correspondent said the Tigers played flawless ball making numerous defensive gems. Lauren Sputo went all the way for the Tigers pitching a a great game. It was one of the the all-time awesome White Plains softball wins. 


Lauren Sputo went all the way for the win, pitching out of a 2-on no out jam in the 7th and a 2-on, no-out jam in the bottom of the ninth. It was clutch pitching at its best, and not even Roger Clemens can go 9 innings. In fact, no one in the major leagues pitches 9 innings.  The Sputo is only 13 years old, we think..but she looked like Don Drysdale today.  Coach Ted O’Donnell said this was the most memorable game he has ever coached.


The great Jillian Schonberg, who lost the game, was gracious and gallant in defeat and should be saluted for a great season.


Dani’s homer was a screamer soaring down the left field line just over the leftfielder’s head and it just kept on rolling.



They’re Smart Ballplayers too! The White Plains Fastpitch Softball Team being honored at the buzzingest, nosiest, most unruly Scholar Athlete Recognition School Board meeting tonight. The softball team (and there is nothing soft about the ball they play) compiled a team average of 91.2 as 11 of its 13 members recorded Grade Point Average of 90 or above qualifying the team as a Scholar-Athlete Team.  Other teams that were Scholar Athlete Teams, were the Men’s Outdoor Track Team where 21 athletes qualified; Women’s Outdoor Track, 24 athletes qualifying; Women’s Lacrosse, 13 athletes qualifiying, and Men’s Tennis with 12 athletes qualifying.


White Plains plays Yorktown Saturday afternoon, in North Rockland,  weather permitting at 5:30 PM for the Section I Class AA Crown. The Tigers second straight appearance in the Final, which WPCNR believes they have never done before. Yorktown is a fine ball club, blasting Clarkstown North (no slouch) 10-1 today.


The Tigers head to the Section I Final for the second year in a row Saturday. No details available but, our mom on the scene says there is pandemonium on that team bus right now. The Tigers — a team written off this season by the experts — had lost three times to New Rochelle this season, notching only two runs in 21 innings, but came through with one of the greatest wins in White Plains softball history today.  The Tigers are 21-6 on the season and the 21st win will always be remembered by anyone who saw it.


 

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The Big Dog Marks His Territory – No Matter What Little Four Decide.

WPCNR THE DAILY BAILEY. News Comment By John F. Bailey. May 31, 2007: Deep Throats with liaisons with The Little Four: Councilpersons Benjamin Boykin, Rita Malmud, Dennis Power and Thomas Roach, tell The CitizeNetReporter that the Little Four  have a solidarity of 4 votes and will not approve the Super Developer’s Exclusivity Agreement, at Monday evening’s June Common Council meeting at least as written (and available for viewing on this website).  



Paul Schwarz, their mentor and leading policyist for the City Committee has even gone on record with a letter to The Journal News demanding the Station Square project be defused promptly. Oh! The pressure! Schwarz wrote: “We can only hope that the council majority will prevail and repudiate this monstrous proposal. True sanity will only return when both men (Louis Cappelli and Mayor Joseph Delfino) have left city hall.”


Is that a setup to make the Little Four look good Monday night?


That’s pressure. If one of the Little Four switches – the Exclusivity Agreement passes. Who will be the weak link? Someone needs an excuse to wimp on the votedown and approve the agreement.


However, since the Little Four have not shown any stomach for voting down anything Louis Cappelli wants in the last seven years, I would be surprised if the Exclusivity Agreement were not altered in some way to give the Council the political face-saving it needs to avoid road-blocking a proposal that has obviously some hidden big time clout behind it.  I mean, the Metropolitan Transportation Authority has not said, “Forget about it.” The County has not said “Hold on, Mr. C.” The State DOT has not said, “Louis Who?”


If I were Louis Cappelli,  I’d be directing his battery of Super Lawyers, Zoning Zenists, and Nuancing Negotiatiors, and Facilitating City Commissioners, and  the Conciliatory Counsel of the city legal department to draft language toning down the language in the Exclusivity Agreement that, in its present form, essentially commits the Council to the Station Square project big time, before the number of floors are even pegged. (That’s very important in analyzing a Cappelli Enterprises project.)


The agreement upon examination, is not just an agreement that allows the Super Developer to be sole negotiator with the city for the city-owned sites he proposes to build Station Square. It infers what some would interpret as a strong vote of confidence by the Common Council in the proposal that this is what they want.


The Council, when it accepts the agreement commits to “continuing” the negotiating Exclusivity conferred by the agreement after the developer furnishes a Redevelopment Plan, to wit, page 2,


“the exclusivity conferred upon Developer by this Agreement shall be continued and the Exclusivity Period shall be extended without need for any further or additional action by either the City, the Agency or Developer until the date on which the Common Council either endorses or rejects the Redevelopment Plan.” This, appears, in effect to prevent the city from seeking other proposals for the area until after it rejects finally the Cappelli Redevelopment Plan.


This is robbery of time.


The Agreement commits the city staff to working on the Redevelopment Plan, to wit, “make City and Agency staff reasonably available to meet and consult with Developer and its consultants at the City’s offices and at the Redevelopment Site, including, but not limited to, the Metropolitan Transportation Authority, New York State Department of Transportation and County of Westchester.”  But, the city does this for most projects anyway, but this is a mammoth project, 5 buildings, a major highway out of the city. To make staff available free, is going to take a lot of time away from the staff’s other duties.


This Exclusivity Agreement goes far beyond giving Cappelli Enterprises exclusive negotiating rights. It appears to prohibit competitive proposals for the property being developed until the Council decides on whether or not to accept or deny the project.


 


 


Another thing this Exclusivity Agreement commits the Common Council to is a favorable attitude towards the project, to wit, Article II is even called “Endorsement of the Redevelopment Plan and Negotiation of Development Agreement.”  The language of the document says the Council endorses the plan, to wit, while acknowledging that approving the Exclusivity Agreement, “shall not constitute a final approval of the Proposed Project under the Zoning Ordinance or any State or local low, or a commitment by the Common Council to approve an Applications or the Proposed Project prior to the completion of review of the Proposed Project under the State Environmental Quality Review Act (SEQRA).


Sounds great, right? “not constitute a final approval.” But then in the same paragraph the Exclusivity Agreement says this:


“Not withstanding the foregoing and any other provision of this Agreement, the Common Council and the (Urban Renewal) Agency acknowledge that the Proposed Project initially presented by Developer (on MAY 10) and which induced the City, the Agency and Developer to enter into this Agreement is a fundamentally sound concept for the redevelopment of the Redevelopment Site and an appropriate and acceptable basis and framework for the formulation of a Redvelopment Plan, and the Common Council and the Agency agree that they shall in good faith consider the Redevelopment Plan.”


That is a very strong paragraph. It could be construed to be a “pre-approval” before details have been worked out.  It could be saying, “We love this.” And the Council would if they eventually rejected it, by subject to who knows what.


However, whether or not the Exclusivity Agreement is revised to take out this strong endorsement language, it has served its purpose.


Cappelli Enterprises has marked its territory, the moribund Railroad Station area is their baby and other developers should be beware.


With Councilmen Boykin, Malmud, Roach and Power under pressure from Robert Stackpole, Robert Levine and Marc Pollitzer, announced candidates for Common Council, it would be a self-serving, political manipulation to vote down the Exclusivity Agreement as evidence to hold up to Stackpole, Levine and Pollitzer that they are strong and not just “stampheads” for Mayor Delfino.


However, the Council’s silence on the whole Station Square project  when they have known about it for a month when they had no problem with granting exclusivity to negotiate, shows a lack of sophistication and awareness, at best – and a contempt for the community.


Why wouldn’t the Common Council President say – “Hold everything. This is so big that I am calling for the Mayor to throw this open for Requests for Proposals.”


The Common Council President could have done that.  Drawing a line at voting an Exclusivity agreement is a token gesture at best simply because the Council was playing politics and going along with the Administration request to keep Station Square quiet until the proper time.


But why keep it quiet? That is the question here.


Nonethe less, the Big Dog Wants the Puppy Developers To Stay on the Porch.


The crafty device of the Exclusivity Agreement puts competitors for White Plains prime real estate on notice that this is Cappelli Country, whether or not the Council approves the agreement or not or even a sanitized version of it.


It is a master stroke by the Chessmaster who, as one sage news commentator has said privately is always six moves ahead of everybody else on the White Plains chess board.


Perhaps even now, the Common Council is writing their speeches saying why they will approve a watered-down Exclusivity Agreement. Or, since the Cappelli-ests have already announced their intentions on the property – the work of the Exclusivity Agreement has been done. As long as he gets his Exclusivity even if he takes out the “endorsement” language, he has shut out the competition.


He’s also flush with $30 Million in cash from his sale of voting control of City Center to Entertainment Properties Trust. So far Cappelli Enterprises has not responded to WPCNR requests for why they sold voting control of City Center policies to their New Roc partner.


Or, perhaps the councilpersons are working on their speeches saying why they will not grant Exclusivity.


And as they read those self-righteous speeches Monday evening, White Plains citizens have to read between the lines, that until the duplicity of pre-knowledge of the council was revealed by this reporter last week, nobody cared. The council would have been coming at the Exclusivity Agreement cold in the public’s opinion.


But they knew about Exclusivity a month ago. They never raised objections. They should have killed it right when they first heard it. One more instance of not putting the land out for bid. Requests for Proposals or whatever.


On the political front, if I were challenging for Council seats of Dennis Power and Benjamin Boykin, and the anointed newcomer Milagros Luocona, I would forget about putting out position papers as opposition has announced. Nobody will read them. Messrs Stackpole, Pollitzer and Levine should have been pounding this coverup issue all week – somehow. It was a golden opportunity to pound them.


Tonight, Battle Hill Association hears Council President Rita Malmud speak. That should be interesting. They should ask her specifically why she did not make this public when she first heard of it – if she was told not to and why?  Doesn’t anybody on the Common Council remember?


And, I’m sorry but the biggest issue on this Station Square is not how many minority persons are featured in the renderings, for crying out loud. Wake up you editorial boards out there? How dumb is that certain editorial board that wasted ink on that? How about the traffic increase of 15,000 people daily into those office and hotel buildings? How about how will all those cars exit only into Tarrytown Road?  Bill Belosi, we will need you!


How about how this works with the light rail link across county? How about who is going to pay for it?


You cannot make this stuff up.

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Cappelli Sells Control of City Center to New Roc Partner for $30M Cash Plus?

 


WPCNR The Cappelli News. May 30, 2007: Cappelli Enterprises has sold controlling interest in its City Center in White Plains  to Entertainment Properties Trust (with whom it is associated in New Roc City in New Rochelle) for $30 Million cash. The City Center has $120 Million in debt, according to a news release.


 



City Center in the Heart of White Plains is at the building in the middle of this photograph with the white cap, adjacent to the twin spires of the Ritz-Carlton Hotel under construction.


 





Robert Drum, Associate General Counsel for Entertainment Properties Trust, based in Kansas City, told WPCNR that Cappelli Enterprises would still be responsible for the day-to-day management of the building.


 


However, Drum, said on matters of major policy and management direction involving the future growth of the property,  Entertainment Properties Trust would be consulted by the Cappelli organization for approval.


Drum said that Entertainment Properties owned all the units in the property with the exception of the Target store, which owns its portion of the City Center on a condominium arrangement.


“We don’t own the real property,” Drum told WPCNR today, “We own (the voting rights) as an investment.”


WPCNR is seeking details from Cappelli Enterprises on the arrangement and future direction of the City Center.


Mr. Drum said details of the arrangement on what Entertainment Properties paid for the property, whether they assumed a portion or all of the $120 Million debt in exchange for the voting rights, were not available because the persons who had hammered out the deal were not available.


The purchase of voting rights was announced by Entertainment Properties Trust CEO David Brain who said in a news release on the Entertainment Properties website, that  “The addition of the City Center of White Plains to our portfolio of entertainment retail centers represents a continuation of our strategy


to own premier theatre-anchored properties, and a strengthening of our relationship with the Capelli


group, our partner in the New Roc Entertainment Center and a developer of numerous high-quality


retail and residential properties. Also, we are very excited about adding the National Amusement


name to our family of theatre operators.”

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