New Rochelle IDA approves incentive package for millennial apartments

The New Rochelle Industrial Development Agency in its Jan. 7 meeting unanimously approved a 12-year Payment in Lieu of Taxes (PILOT) program for East & Hudson New Rochelle LLC, the New York City firm that plans to develop millennial-focused apartments at 165 Huguenot Street.

The six-member committee passed the property tax incentive, which begins at $127,692 during the first operating year and increased by three percent each year going forward.

The first two years of the program remain constant at $101,142 during the construction stabilization period, officials said during the meeting. PILOT agreements allow manufacturing, industrial and other nonprofit companies to receive property tax agreements by making alternative predetermined payments.

The project, proposed by New York City developer East & Hudson New Rochelle LLC founder and CEO Anup K. Misra, is a 64,000-square-foot, 71-apartment, six-story building within walking distance of the city’s Metro-North train station. It will include 24 studio apartments, 31 one-bedroom apartments and 11 two-bedrooms on the second to sixth floors. All will be offered as rental units and range from 500 to approximately 975 square feet.

“Between the dollar amount of tax benefits, length of tax benefits, the creation of workforce and housing jobs during construction and a few jobs being created after, I think this is the sort of project the city should be doing,” said New Rochelle IDA Vice Chairman Bernard J. Michael. “We are providing a benefit here to incentivize the development of this project. Our mandate here is to incentive projects that our good for New Rochelle.”

East & Hudson plans to demolish the existing building on the 0.36-acre site, which is currently occupied by Lloyd Machinery Ltd., an industrial machine and equipment company.

New York City community development organization National Development Council, the consultant representing the city, conducted the analysis for the proposed PILOT. Director Kevin Gremse said that the figures for the PILOT program were based off the cost of educating the new students anticipated entering the city school district from the development divided by the approximately 65 percent of taxes that go toward public education.

Because the development will be targeting millennials, Gremse estimated that it would only net four new students into the school district. Approximately ten percent of the rentals will be “moderate-income housing units,” according to plans.

New Rochelle IDA board member Aaron J. Fleishaker said during the Jan. 7 meeting that the tax incentive agreement works in favor of both the developer and the city.

“Our interest is to not just make sure we’re providing the right type of incentive for development in New Rochelle but also make sure that New Rochelle is being treated fairly in the transaction,” Fleishaker said.  “We came up with the 12-year PILOT in package today, which satisfies the needs well of both parties.”

The New Rochelle IDA held a public hearing on the project Oct. 28. The City of New Rochelle Planning Board is serving as the lead agency for the project.