New Rochelle mulls redevelopment as finances improve

Moody”™s Investors Services removed a negative financial outlook designation for New Rochelle, strengthening the city”™s borrowing power at a time when officials are envisioning several major downtown development projects.

Moody”™s, in its analysis released Feb. 13, gave the city an Aa3 rating, a high-quality ranking that could translate into better interest rates when New Rochelle issues bonds. The removal of the designation, which was in place since 2011, came in part due to improved financial operations, manageable debt burden and New Rochelle”™s sizable tax base.

The firm noted challenges for the city that include decreasing tax income caused by deflating assessments and large back tax settlements. Municipal costs such as ballooning contributions to the state pension fund are also viewed as hurdles to predictable budget lines.

City Finance Commissioner Howard Rattner said that New Rochelle”™s financial practices offered stability going forward year to year. “The removal of the negative outlook is a major achievement and indicates that we have successfully met the fiscal challenges caused by the global economic recession beginning in late 2007,” he said.

News of the improved outlook came just as the city plans to update its Comprehensive Plan, a document that municipalities adopt to serve as a zoning guidebook for future land use and governmental boards. It has been nearly 20 years since the last plan update.

The city netted a $198,000 grant from the state for the update and costs associated with potential rezoning efforts. New Rochelle”™s Department of Development also received a $79,200 grant to update the city”™s Local Waterfront Revitalization Program. That program, last updated in 1999, aims to guide waterfront development and incorporate a land use plan for the long vacant Davids Island on the bay.

Mayor Noam Bramson, a Democrat, said in a recent interview that redevelopment in the downtown would have to be coordinated with both long- and short-term projects. Any proposal, particularly one of a grand scale, could also be swayed by the level of interest from potential private companies.

“There”™s always an interplay with what we”™d want in an ideal world and what”™s supportable in the market,” Bramson said.

New Rochelle recently accepted a consultant”™s report for transit-oriented development that suggested several projects around the train station. TOD has become a buzz word for municipalities, with many communities sparking economic development with mixed use clusters, condos and foot-traffic-focused storefronts built in close proximity to their rail stations. Such a development in New Rochelle could stabilize the city”™s tax base, create jobs and help improve the local economy, the mayor said.

“My personal belief is that residential growth is an important component of an overall transit-oriented development,” he said. The mayor said the city and school district could jointly commission studies to understand “tipping points” that might require the expansion of existing schools or even construction of new facilities.

Westchester County has as many as 5 million square feet of vacant office space, according to the estimates of some commercial real estate firms. But building new competitive office space with modern amenities is also essential to the city”™s long-term fiscal health, according to officials.

The recent TOD report suggested new developments that would include 1.4 million square feet of research and development space ”“ the type of space used for medical or biotech companies. That space would replace a little more than 1 million square feet of office space. Additionally, the report suggests seeking out 483,415 square feet of retail space.

Aside from the TOD analysis, there are two other studies that could have ramifications for future redevelopment. Columbia University is reviewing specific sites and will offer suggestions on how they can be utilized more creatively. Also, a recent traffic analysis identified several suggestions to change traffic patterns or reroute local thoroughfares to create a more centralized downtown area.

Although most of the proposed construction or redevelopment is now in its earliest stages, one of the short-term projects may be modifying the North Avenue traffic pattern near the train station this year. The state has already committed to reconstructing the North Avenue bridge over Interstate 95 and city officials believe any work to the traffic triangle or surrounding roadways can coincide with the bridge construction.