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Journal. Interview with The Super Developer, Continued by John F. Bailey. April 1, 2004: Louis Cappelli, the Super Developer, reached out to The CitizeNetReporter again Thursday evening to make it clear that his newly struck deal (with J P Morgan Fleming Asset Management in which JPMFAM is partnering with Mr. Cappelli, investing $105 Million in One City Place, (The North Tower), was not taking profits out of City Center on his part.

 

 

 THE SUPER DEVELOPER IN ACTION: Louis Cappelli said he is turning over his $40 Million in equity, what would be left  of the JP Morgan stake, after paying off Cappelli’s $65 Million debt on One City Place, and put it to work building the “Three Sculptures” he plans for 221 Main Street.  He expects to begin “The Triple Towers” in June, pending expected Common Council approval in May. The Super Developer is shown in a photo taken March 12, inundated with plans in his office on 14 Mamaroneck Avenue across from the City Center, shown in background. Photo by WPCNR News

He made it clear that Trammell Crow was not a third partner in One City Place, that he and JP Morgan were the only two partners on the project under the pending deal, while Trammell Crow was an associate, under contract to manage and lease the building only, not a participant in the profits. Trammell Crow manages several buildings for JP Morgan that has purchased Trammell Crow owned properties.

 

“As my part of the partnership, “ Cappelli said, “I am A, supplying the building, and B, fully responsible for the balance of the construction, which will be complete by the end of May,  and C, when I pay off the $65 Million debt the building cost, I will have $40 Million left, and D,  (as their part of the partnership) JP Morgan is supplying $105 Million cash.”

 

Asked if he was paying being paid for the balance of the construction, Cappelli said he was not: “I will be funding the complete cost of the remaining construction.”

 

PILOTS Unaffected by Taking on New Partner.

 

Cappelli indicated that the Westchester County Industrial Development Association had approved the concept of the partnership with JP Morgan Fleming Asset Management Thursday morning, because, Cappelli said, the nature of the project had not changed, “The County approved it this morning, we just evolved into a new partnership, and that does not affect the PILOTS.” Cappelli said.

 

 

Likes to be in the field.

 

WPCNR asked whether he was the Head Coach or the Quarterback under the new partnership arrangement with JP Morgan. The Super Developer chuckled and said he liked to be in the field and the quarterback doesn’t get “banged up a lot.”  Reminded that the Coach made more decisions, Cappelli refused to be drawn into the reporter trap play, refusing  to say whether he was the Coach or the Quarterback in the new partnership.

 

“I’m very happy with this partnership with JP Morgan,” he said, and indicated more partners were coming in on “The Triple Towers.”

 

THE TRIPLE TOWERS: Cappelli’s “Three Sculptures,” planned for 221 Main Street in White Plains. Site Plan is coming in Tuesday, Mr. Cappelli promises. Photo by WPCNR News.

 

More “Equity” to Come to Plow into “The Three Sculptures”

 

“There are two possible investment partners willing to commit two sums of $100 Million each in White Plains,” Cappelli said, towards the 221 Main, Cappelli Hotel and condominium project, he is now calling “The Triple Towers”.

 

He said institutional investors, including large equity funds and pension funds were seriously looking at investing these sums in the upcoming “Triple Towers” On Main Street.

 

“I am humbled, floored, at the interest (of major institutional investors) in White Plains,” Cappelli said. Asked if Donald Trump was still in the running to lay some money down, Cappelli, said the Trump interest was more an invention of the CitizeNetReporter than real, but he said it in a good natured way.

 

Site Plan for 221 Next, Then Financing.

 

At this point, Cappelli said he could not seek financing for the “The Three Towers” project until a site plan was approved, and the $40 Million in fresh equity from the JP Morgan deal announced Wednesday would enable him to move ahead on “The Three Towers” using his own equity.

 

The Super Developer said that the “Three Towers” site plan would be presented Tuesday of next week. He noted that Beyer, Blinder Belle architect Fred Bland (designer of the City Center North and South towers), would be brought in to design the Office Building and hotel.

 

Cappelli said it was good to use architects at what “they were best at” and Bland’s specialties, he said,  are office buildings and hotels.  His current architect on the City Center South Tower, Costas Kondylis, was a residential specialist, who he is tapping to handle the two towering condominiums above the planned hotel.

 

Reinvesting Profits in White Plains.

 

“I don’t want to come across as the bad guy here,” Cappelli said earnestly. “I know people hate me. I want them to know I am reinvesting in White Plains. All of the money (from the JP Morgan deal)  will be  reinvested into 221 Main Street. Any profit realized will go right into 221 Main Street, and that continues to show what I think about this city.”

 

Cappelli said he expected to start “The Triple Towers” in June and complete it in two and a half years, opening  in January of 2007.

 

City Center “Green Light” Meeting

 

Cappelli said he had been working 10 to 14 hours a day on both 221 Main and the City Center condominium restart. He said that on Friday morning he would be holding a “Green Light” meeting with twenty persons on his construction and engineering team, to begin again full scale construction anew on the City Center Condominium Tower on Martine Avenue. 

 

He said the delay the last two weeks was necessary to run power to the condo site from the North Tower. He said he expected Con Edison to run permanent power to the condominium tower within six months from the vault under Martine Avenue, at which time the building would be fully powered up.