WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. June 8, 2004: Despite strong objections on the part of two affordable housing advocates, the Common Council voted to approve an affordable housing unit provision plan for developers of condominiums Monday evening by vote of 6 to 1 (Councilman Roach in the negative). The plan offers a developer of condominiums or cooperative apartment units the option of paying cash per units instead of reserving 6% of his condominiums or cooperative apartment units.
The cash payments are $30,000 per unit for each studio or one-bedroom apartment required; $35,000 per unit for each two bedroom Affordable Ownership Unit and $40,000 per each three-bedroom unit. In the case of the Cappelli Hotel-Condoplex-Office project approved last night, Mr. Cappelli is required to make payments for 6% of 290 condominium units, or 18 units, requiring a payment of approximately $720,000.
Robert Miller, President of Westhab, a building of affordable housing, spoke opposing this plan, calling it “a buyout” that would not supply what the city needs: affordable housing units. He noted that since Mr. Cappelli’s condominiums at 221 Main Street as well as those planned at Trump Tower at City Center (the South residential tower of the City Center, now at the 21-story level, heading to 35), are planned to sell for $1,000,000, which would under the 6% affordable housing law passed two years ago require Mr. Cappelli to make such units available for $200,000.
Miller pointed out that if the builder is able to fulfill his obligation to affordable housing by paying $40,000 per unit, he makes a $760,000 profit. Miller added that the city should instead consider Councilman Glen Hockley’s Density Bonus Plan, offering the builder more floors to the project at 221 to provide affordable units without hurting his originally projected business model.
Rose Noonan, council of the Housing Action Council said more cash funds to aid persons seeking financial help were not needed because the Housing Action Council cannot find takers for the money they have to lend persons now for affordable housing. What is needed, she said was more units.
Councilman Robert Greer countered these positions by saying forcing builders to pay too high a price on renting luxury units for a quarter of their value did not make economic sense for developers to consider, and would chase away potential housing development all together. He pointed out that the monies collected from Mr. Cappelli and future condo developers could be used at the city’s discretion to leverage affordable housing.
Councilman Glen Hockley said in future months he would work for the Density Bonus Plan, because he felt it was a “win-win” situation, with the developer, the consumer, and the city all benefitting.
In Resolution Action…last night.
The council approved a home rule request of the New York State Legislature, clearing the way for Assemblyman Adam Bradley and State Senator Suzi Oppenheimer to push bills abolishing the White Plains Parking Authority effective June 30, allowing the city to carry the attractive $7.5 Million WPPA fund balance on its books for cosmetic makeup for the bond rating agencies.
The council approved legislation creating a Department of Parking, setting a hearing on this law for July 6.
The council approved a public hearing on dissolution of the Parking Authority for June 23 at 5 P.M.
The council approved 4% raises across the board for city commissioners, and a $5,000 raise for the Mayor’s outgoing Executive Officer George Gretsas, rumored to be leaving sometime after the 1st of July. Reports from sources with knowledge of Mr. Gretsas actions say he has signed the contract with the City of Fort Lauderdale and anticipates starting there in mid July.
The Council approved a permit for a new cocktail lounge, Vega on Mamaroneck Avenue, next to Lazy Boy Saloon, and approved a permit renewal for the cabaret, Vintage.
The council purchased a $300,000 annuity in order to move $700,000 into the city’s general fund from a very old pension fund.
