The New Rochelle Industrial Development Agency approved $29.3 million in tax breaks on Oct. 27 for two apartment buildings that are expected to cost $172 million to build.
The IDA authorized $38.8 million in tax breaks for three buildings in 2019. But designs of two buildings have changed and thus required amendments to the public subsidies.
The overall project will be known as Westchester Place, after the name of the street that will become a pedestrian passageway connecting all three structures.
Plans call for creating 524 apartments, about 8,150 square feet of retail space and garage parking for 478 vehicles.
Allstate Capital, of Monroe, Orange County, led by Mikel Jeremias, is the developer.
The smallest structure, at 8 Westchester Place, was scaled down from seven stories to six. It will have 65 apartments designed as artists quarters that will be leased to tenants who make no more than 80% of the area’s average median income.
Development costs have increased by about $2 million, according to a cost-benefit analysis.
The project is expected to create 150 construction jobs, eight full-time equivalent positions and two part-time positions.
Plans for 316 Huguenot St. were enlarged to 27 stories from 14, and to 315 market-rate apartments from 190. It is expected to create 350 construction jobs, 10 full-time equivalent positions and two part-time positions.
The combined subsidies for the two buildings include property tax abatement of $22.8 million spread out over 20 years, $5.2 million sales and use tax exemptions, and a $1.3 million in mortgage recording tax exemption.
The cost-benefit analyses estimated a net public benefit of $566,194. The calculations include an increase in property taxes on underutilized land, even after the tax abatement for the developer; the value of 65 units of affordable housing; other taxes; and one-time fees.
The third building in the Westchester Place complex, at 64 Centre Ave., is designed as a 14-story structure with 144 market-rate apartments. Allstate has lined up financing to start construction, according to recent news stories.
