In a city short on revenue and long in waiting for an economic renaissance driven by downtown redevelopment, Yonkers Mayor Mike Spano in his first year in office has turned to the state as a key funding source for private developers.
Spano recently announced that Empire State Development Corp., the state”™s chief economic development arm, has committed $8 million to fund the uncovering of the Saw Mill River at the site of River Park Center, the mixed-use development near Getty Square on which the city”™s master developer, Struever Fidelco Cappelli L.L.C. (SFC), has been unable to break ground in the prolonged economic downturn.
Spano in a press release said the grant will be used to acquire parcels needed for the Saw Mill daylighting and riverwalk project. His predecessor in the mayor”™s chair, Philip Amicone, in 2009 formed the New Main Street Development Corp. (NMSDC) to administer the riverwalk project and property purchases for the city.
The city and SFC have identified 13 private properties needed for the project. The Yonkers Industrial Development Agency three years ago agreed to use eminent domain to take properties whose owners reject the city”™s purchase offers. Before the recession, the targeted properties together were valued at $11 million to $12 million.
Spano”™s office and ESDC officials did not respond to questions as to which state program would fund the $8 million grant and when the city expects to receive it. The mayor”™s office said the ESDC board is expected to officially approve the grant Aug. 16. An ESDC spokesman said the Yonkers grant is pending board approval and a public hearing.
Both the Amicone and Spano administrations have waited for another state agency, the Dormitory Authority of the State of New York (DASNY), to release a $24 million grant authorized five years ago for the Saw Mill daylighting project. NMSDC proposed to use those funds to acquire 11 properties for the River Park Center segment. Members of the Yonkers City Council at the time said they opposed using the state grant to acquire private properties taken by eminent domain to benefit a private developer, SFC.
Spano this summer is pursuing more state funds for his city”™s downtown redevelopment through the Mid-Hudson Regional Economic Development Council administered by Empire State Development. The mayor designated the River Park Center project as one of three priority economic development projects for the city, calling it “a transformative environmental, commercial and retail project that will highlight Yonkers”™ natural beauty, employ residents and attract visitors for years to come.”
Spano also seeks state funds for a $22 million private project planned by Rising Development-Yonkers L.L.C. to rehabilitate five properties on downtown Mill Street for conversion to live-work lofts and retail and restaurant space. (See related story on page 2.) Nick Sprayregen, managing member of Rising Development, said the company has applied for a $4 million state grant that it needs to make the project financially viable.
The mayor said he is also pursuing state grant money for the proposed redevelopment of the Glenwood Power Plant on the Yonkers waterfront. Ron Shemesh, owner and CEO of Excelsior Packaging Group on the downtown Yonkers waterfront, and investment partners are acquiring the industrial property, vacant for more than 40 years, for mixed-use redevelopment.
The private developers in late June submitted Spano”™s letters of support with their grant proposals to the Mid-Hudson council.
