Update on Affordable Housing/Ritz Carlton Agreement in White Plains, NY 10601

pngIn a previous blog I commented on the need to enforce affordable housing quotas in order to maintain a vibrant mix in communities that are rapidly becoming unaffordable for working families. 

In an interesting turn of events, Mr. Cappelli, the super-developer of the Ritz Carlton, Trump Tower and City Center, has bowed out of a potential deal withe White Plains  regarding a three acre lot of prime real estate surrounding the metro-north train station. Apparently, Mr. Cappelli  was offended by the stony faced city council when they insisted that 24 units of affordable housing be built before he opens the second tower or the Ritz Carlton. Since he was supposed to have all of the units built prior to opening the first tower, and since Mr. Cappelli has known since the beginning of the Ritz Carlton  project that he would owe the city these units, I and many others, I assume - fail to fathom why this is such a huge issue.  It underscores my initial concern that Mr. Cappelli might have been trying to wriggle out of this obligation to the city.  This is purely conjecture on my part, but some of the excuses offered up as explanations for the delays indicate a carelessness of thought and ineptitude that a man with his experience in building just doesn't make. If the super-builder is indeed to live up to his reputation, erecting 24 units that he knew he had to build for the past two years should not be unbelievably difficult - unless the intent was not to build them in the first place. 

The proposed development  that Cappelli is backing away from has an an interesting history and drives home one of the points I was trying to make in a previous blog about affordable housing and the need for proper planning.  The initial  proposal included  three office buildings, 40 stories each, a large hotel and a totally revamped metro-north train station.  No one doubts that the train station could use a complete overhaul, but the scope of this plan after the massive building in Renaissance Square and City Center was completely over the top and would have had a terrible impact on several close-in residential neighborhoods in the form of traffic, pollution and cityscape literally in their back yards.  The public outcry against this proposal was swift and strong.  Even major Cappelli supporters came out to the City Council meeting and said "enough is enough." Mr. Cappelli was asking for the EXCLUSIVE right to build on the site in exchange for conducting the feasibility studies at his own expense. The Council and the citizens rightly wanted to see more competition for a proposal of such proportions.  Recognizing that he was staring defeat in the face, Mr. Cappelli, in an act of pure theatrics said that he would rather not harm his "perfect record" in White Plains and have his proposal go down in defeat.  Instead, he withdrew the offer before the Council could vote....which of course allowed him to put the offer back on the table in very short order. 

The recent election has changed the balance on the City Council such that Mr. Cappelli is no longer assured that his projects will pass easily and swiftly - to my mind, that's a good thing. As I have said in previous posts - nothing replaces good city PLANNING.  Perhaps the new Council is understanding this concept better than I thought they would. Planning looks ahead and anticipates problems.  Planning that assures that people from all walks of life can reside in a city like White Plains - not just the very wealthy. Further, given the dramatics practiced in the past - I am hardly impressed by this latest display of petulance.  Planning a city should never be up to only one developer.  There is room for other ideas and plans that might be less grand but not be so hard on the residential neighborhoods and city infrastructure.

That ante was upped in last nights Common Council Meeting where the City council basically stated that ALL 65 units of affordable housing will now have to be built prior to the opening of the second tower of the Ritz Carlton.  My suggestion to Mr. Cappelli is this: the public wants and needs these units, that is the price of doing business here. You knew that going in - now stop complaining and build the units. If you do it with the zeal in which you approach your big ticket items - the units could be finished in time.  All the time and energy that has been wasted trying to get OUT of building the units has only served to set you back time-wise and has caused you to lose credibility with the public and  the City Council. 

For more on the topic in question, Keith Edding's article in the Journal News is very informative as is John Bailey's review of the latest City Council Meeting.

 

7 Comments on Update on Affordable Housing/Ritz Carlton Agreement in White Plains, NY 10601

You Go Ruthmarie! With land being at such a premium in your area, I can't understand the developers position. Surely this isn't the first or last project with an affordable housing requirement. Great post!

02/05/2008 07:54 AM by Debbie Malone, RE/MAX, Lynchburg, Smith Mountain Lake, Real Estate Agent (RE/MAX 1st Olympic, ABR, e-PRO, ASP)


It's just that excuse after excuse has been offered up.  Granted Cappelli was supposed to build his portion of the housing with another builder (Ginsberg) who's deal eventually died - and this created one delay that was not of Cappelli's making.  But the subsequent delays ring hollow. Also there were increasing liberties taken by Cappelli - all of a sudden the Ritz had more floors than had been approved - so after the deed was done - Cappelli has to come back to the City Council and say "Opps! Can I have the extra air rights?" Then an additional building is begun before the site approval was submitted. Opps again. When you are that eager to build - why can't you find a way to start the affordable units?  Then there was the heating issues.  People like Cappelli don't get to where they are  by being careless. They work very hard - my problem with people like this is that when they do give back its with a ton of strings.

02/05/2008 01:59 PM by Ruthmarie Hicks (Keller Williams Realty)


Ruthmarie.  I will PAY YOU to express as eloquently the same insanity that we face in Riverhead, New York.  Unjustifiable BACK PEDDLING, at the expense of the community.  Excellent and important post- thanks for inspiring me!  But really, how much would you charge... :)

02/05/2008 03:58 PM by Options Realty


Laurie - are you talking about the HUMONGOUS MALL they are trying to build there?  I'm sure you saw the NY Times article by Mary Cummings.  I can tell you from my experience in White Plains, that Riverhead is "in for it."  This could be a huge mess if not done correctly.  I can safely tell you that no matter how huge the proposal - the environmental impact statement submitted ALWAYS claims there will be "no significant effect" on traffic, pollution, quality of life and local business.  Yep....and if you believe that a 51 acre mega mall in a town of 23,000 isn't going to have a huge impact - I've got a bridge in Brooklyn I'll sell you really cheap! 

The other issue from the article is that the downtown area will be drained of business.  I don't know the geography, but one of the concerns was that so much retail would push people away from what is now the central shopping area.  I can tell you that this is true.  White Plains is a city, but geographically, it is small.  Nevertheless, we are sort of the retail giant of Westchester. This has partially drained business from Greenburgh (although I still shop there - but there is a very high vacancy rate on the main strip-mall drags.  Part of this is increasing rents, but the other issue is probably all the White Plains retail.  Also, even within White Plains - we have six shopping malls (big and small.)  The Galleria mall was built when I was in high school and was a major place to shop when I was in college. It detracted from the White Plains mall that had been there forever. It became  junk heap - even though it was only a couple of blocks away from the Galleria. That mall now houses the DMV and a bunch of small shops that barely survive. When the large Westchester Mall was built, the Galleria became a kid hang out with a lot of crime petty and not so petty.  It is struggling to come back.  The Westchester Pavillion has been negatively impacted by the City Center..and on it goes. 

Are you serious about my writing something?  That's quite a complement.  My mother wrote for Gannett newspapers and several NYC papers for many years.  The biggest problem about my writing something is that I would have to have all the facts.  I live in White Plains, so I've watched the history happening. I even attend a lot of the council meetings (they are also televised so I can tape them.)  90% of the work would be having a complete understanding of the players and their motivations and what exactly happened when.  I just don't know how long it would take.  I think for writing $15/hour makes sense. 

It sounds like  a HUGE MESS. You might want to contact some of the citizen groups in White Plains that have been largely responsible for holding back some of the more insane projects.  In part they work by gumming up the works making things so difficult the builders leave.  Sometimes I think they are over the top - some good projects have been lost and the land could still be developed by someone else - with a worse idea!   But I have to say that what they do often works.  Not always, but boy it helps.  There's 350 acres of minimally developed land in the middle of White Plains that was rezoned because the owner wanted to build a literal metropolis in the middle of it...that site has been a bone of contention for over 20 years now.   The battle to rezone back to commercial/multifamily is very much on the minds of developers and citizens a like.  If developed the way the owners want, the face of White Plains would be forever changed. My late mother was involved in changing the zoning and the CCOS (Concerned Citizens for Open Space) have been watching the situation like hawks for all this time. 

02/06/2008 04:57 AM by Ruthmarie Hicks (Keller Williams Realty)


Ruthmarie,
Thanks to Debbie Malone for introducing you to me as  a "gem in the rain".  I'll be checking in from time to time, keep up the good fight.

02/06/2008 06:59 AM by Cynthia Tilghman, RealtorĀ® Onslow County NC Home Specialist (Kingsbridge Realty, Inc)


Wow - I'm surprised that a big time developer wouldn't pay more attention to his image. In Nashville, you had better have a good track record, or you can't get anything approved.

 

02/06/2008 08:25 AM by Franklin real estate Elizabeth Payne (Keller Williams)


Hi Cynthia - I actually have to check Debbies blog.  I need to find more gems as well to add to my regular reading.  i've made a vow to start checking new blogs to see what's new in AR.  We shouldn't just stick to the same-old, same-old.

 

 Elizabeth - they don't seem to care as much around here.  It's dog eat dog. If they get the ear of a Mayor or Town supervisor, they pretty much get whatever they want. After all, if yo can convince a money hungry municipality that you are the answer to all their problems, they will agree to almost anything.  Trouble is that often the infrastructure changes required to accommodate the new building  along with the tax breaks used as a carrot to get the builder to build overruns the savings and actually COSTS the community money.  Leaving the middle class home owner unable to sustain the tax increases.  It can really be a mess if not done correctly. 

02/07/2008 05:56 AM by Ruthmarie Hicks (Keller Williams Realty)


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Real Estate Agent: Ruthmarie Hicks (Keller Williams Realty)
Ruthmarie Hicks
White Plains, NY
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