With major downtown revitalization projects proposed or underway in several of the county”™s largest towns and cities, Armonk, a tiny hamlet in North Castle with just over 4,300 residents, finds itself in the midst of a million-dollar makeover.
In the half-mile radius comprising downtown Armonk, three separate developments involving 178,000 square feet of new and renovated commercial, retail and residential space and valued at more than $100 million by North Castle Supervisor Howard Arden are either under way or set to begin by the end of 2012.
The trio of projects includes Armonk Square, a 53,000-square-foot mixed-use development on a 3.5-acre plot that has gone undeveloped for three decades; The Bristal at Armonk, a 105,000-square-foot assisted living facility, and a CVS pharmacy, which has leased the 20,000-square-foot building previously occupied by Great Atlantic & Pacific Tea Co. Inc. with plans to renovate the shopping center where it will be located.
Construction is well underway on Armonk Square, with representatives of CVS and The Bristal at Armonk developer The Engel Burman Group, located on Long Island, both saying they expect to break ground before the end of the year.
When that occurs, “North Castle will have over $100 million in new construction breaking ground in our town, which is a pretty impressive number compared to what”™s going on across the county and the state and the country,” Arden said in a recent video sent to constituents.
The approvals processes for each of the developments were not without roadblocks.
For the better part of 30 years, North Castle leaders have sought to develop the plot of land known as Armonk Square, with the property changing hands at least five times.
The announced departure of A&P, which had operated a grocery store in Armonk for more than 40 years, acted as a catalyst for Armonk Square developer ASQ L.L.C. of Scarsdale.
Shortly after Werber Management Inc. announced in the spring of 2011 it had reached a long-term lease agreement with CVS Caremark Corp., of Woonsocket, R.I., for the former A&P property at 450 Main St., ASQ principal Alan Zaretsky and minority partners Dominic and John Dioguardi ”“ all Armonk residents ”“ modified the Armonk Square plans to include space for a grocery store.
ASQ subsequently reached a lease agreement to bring in a DeCicco Family Market, with construction beginning earlier this year.
“We are on target to deliver the building to the supermarket sometime in November,” said Dominic Dioguardi.
He said construction on the exteriors and shells of the two other buildings that make up the development, which will include a combination of retail, restaurant, commercial and banking space, should be completed by then.
“We have leases out on all but 2,500 square feet,” Dioguardi said.
Dioguardi said ASQ has obtained a loan from M&T Bank of slightly less than $10 million for the project, but said he couldn”™t elaborate further on the construction costs.
As those plans developed, CVS representatives worked with town of North Castle officials to finalize its plans to subdivide its space into a 17,400-square-foot pharmacy and a 2,500-square-foot retail space.
CVS”™s plans, which have met fierce opposition from residents and local business owners and numerous legal challenges, culminated with the chain obtaining a special use permit in July. The proposed renovations will go before the North Castle Planning Board Sept. 24, when CVS will look to obtain the board”™s final site plan approval, after which CVS will be able to apply for building permits.
Had CVS not planned to renovate its space, it would not have been required to obtain any town approvals, Arden said.
With the proposed renovations, however, CVS was required to obtain a special use permit, which led to discussions with town officials that resulted in CVS agreeing to renovate the exterior of the entire shopping center at 450 Main St., which is owned by Eden Enterprises L.L.C and managed by Werber Management.
The developer for the project is Gershman Brown Crowley Inc. of Indianapolis.
“We came in with a situation that we really had no control over, and we worked with the developer to make lemonade out of lemons, and I think it”™s going to be a good project when it”™s done,” Arden said in an interview.
A group of residents has lodged an Article 78 challenge, a type of lawsuit that allows any given party to sue a municipal entity, but no injunction was granted and a hearing was postponed for 45 days. That will enable CVS to proceed with construction after obtaining its final site plan approval and building permits, said Alfred DelBello, of White Plains-based DelBello Donnellan Weingarten Wise & Wiederkehr L.L.P., the developer”™s legal representative.
While “bringing in a national chain like CVS wasn”™t what we would”™ve planned on…our feeling is that hopefully it”™ll draw additional business to the downtown area,” Arden said.
The Bristal at Armonk, which has received all of its approvals ”“ with the exception of final approval for its signage ”“ with little fanfare, is set to begin construction on what will be an approximately $20 million project sometime this fall, said Engel Burman Group principal Steven Krieger.
The facility will be the company”™s ninth Bristal assisted living development and its second in Westchester County.
Going forward, Arden said he hopes to study the potential impact of non-office developments within Armonk”™s Business Park Drive, where The Bristal will be located.
“We actually have a work session planned to review rezoning and reuses of the Business Park,” he said. “It”™s kind of unfair to have these buildings sitting empty with no revenues. It”™s bad for the town, it”™s bad for the building owners, obviously. So are there other things that could be done there? Yes.”
Arden said he is unsure whether that would include retail developments, but stressed the need to examine all possible options.
“You have to realistically look at being open-minded about it,” he said, adding that limiting the office park properties to commercial developments is “not fair for the building owners and it”™s really not fair for the taxpayers because we”™re not getting any revenue from that empty space.”
