Something just might happen this time at the old Austin Avenue landfill in Yonkers.
The Yonkers Industrial Development Agency gave its approval on March 25 to Morris Cos. to build a department store, “ending 35 years of attempts to develop the property,” according to an agency announcement.
The Westchester Industrial Development Agency took its turn on the following day, unanimously approving a resolution to sell the property to Morris for $32 million.
Sometime this month, possibly June 6, the deal will go to the Westchester County Board of Legislators for final approval.
Morris Cos. of Rutherford, N.J., plans to build a Target department store on the site, located along the New York State Thruway.
The Target was proposed about 15 years ago but construction was derailed by various disputes between the developer, Yonkers and Westchester County.
You could even go back farther, to 1979, when Yonkers entered a consent agreement with the state Department of Environmental Conservation to remediate the Austin Avenue landfill.
Twenty-five years later, in 2004, Morris agreed to finance the cleanup and Yonkers IDA issued a $1.5 million Brownfield redevelopment bond.
It took another 10 years, to 2014, for the state to grant an environmental easement allowing development on the landfill.
Or, you could start the clock at 1982, when Morris Industrial Builders made a deal with Yonkers and the county to develop Austin Avenue Office Park.
By 1985, the developer and the governments formalized their plans in a complicated deal they called the “Five Party Agreement.”
The landfill and other land owned by various entities were consolidated into one parcel owned by the Westchester IDA.
The city and county agreed to issue $5.8 million in general obligation bonds to finance offsite improvements for the office park.
Morris agreed to pay rent to the county and to build 875,000 square feet in office buildings within 20 years. The real estate market changed and the deal was amended to allow construction of a shopping center.
Morris built stores for Stew Leonard”™s grocery, Costco wholesale, and Home Depot. Nothing new has been built since the three opened in 1999.
The Five Party Agreement devolved into lawsuits and counter-suits over state tax credits, payments in lieu of taxes, allocation of rents and use of land to replace an abandoned park.
Then the county wanted to swap land with the developer to provide housing for developmentally disabled residents of Ferncliff Manor.
The remains in a neglected Orthodox Jewish cemetery had been disinterred and reburied in Israel to make way for a parking garage for Costco and Home Depot. But after the garage was built it was discovered that the remains of many children were unaccounted for. A monument was erected at a hillside near the parking garage, commemorating the cemetery.
“It”™s really convoluted,” said Ken Jenkins, who as president of the Yonkers IDA and as a county legislator representing Yonkers, has had a ringside seat to the various disputes and complications.
In 2014, he said, the city and county and their development agencies settled their disagreements.
Meanwhile, Yonkers and Morris Builders were negotiating, according to John Larkin, the Yonkers council member who represents the Austin Avenue area.
The developer wanted planned multi-use district zoning, like Ridge Hill just across the Thruway. That would allow Morris to build 400 units of housing, stores and other types of projects. But the zoning requires at least 80 acres and Morris had only 70 acres.
“That zoning allows just about everything,” Larkin said. “When I became the real estate committee chair, I had a talk with them. I told them they had to understand that we would never support the PMD zone.”
Instead, they agreed on an Austin Avenue Special Shopping District. Morris dropped its housing plans and agreed to lower a 40-foot wall along Prior Place that could have become an eyesore for residents on that street. The wall will have to slope from 30 feet down to 10 feet and include landscaping to soften the view.
The Five Party Agreement was still a complication, but everyone had incentives to resolve their disputes.
“The timing was right,” said Bill Mooney, director of the county Office of Economic Development.
The developer, according to city and county officials, risked exhausting Target”™s patience for building the store. And if Target backed out, the region would lose about 560 jobs and an expanded tax base. The company also was eager to buy out its county lease, Larkin said.
Morris officials did not respond to a request for an interview.
The city and county need money.
The county, for example, is dealing with a potential $17 million budget deficit, and County Executive Rob Astorino is a proponent of increasing revenue without increasing taxes. The Austin Avenue site presented an opportunity to accomplish just that.
“At the same time,” said Michael Kaplowitz, Democratic chairman of the county Board of Legislators, “we don”™t want to rely on one-shot deals.”
He said this one-time sale of property is prudent because a large portion of the budget deficit is due to lower sales tax revenue caused by a one-time drop in petroleum prices. As gas prices normalize, sales tax revenue should increase in the coming years.
The pending agreement will terminate the Five Party Agreement.
The county will get $15 million up front, $3 million when Yonkers issues a building permit for the store and $1 million when the store opens.
Yonkers will get $10 million up front, $2 million when its issues the building permit and $1 million when the store opens.
Morris will get the permits and planning approvals it needs to build the Target store. It also has plans to build an 80,000-square-foot store or possibly a hotel, Larkin said.
The developer will no longer have to pay rents or payments in lieu of taxes. When Target opens, a new 10-year payment in lieu of taxes will kick in.
Morris will get an option to buy nine acres from the county next to the site.
Yonkers will get 11 acres to establish New Hogan Park to replace a park that had fallen into disuse.
“The Austin Avenue development site is a way to unlock our resources,” Mooney said.
Yonkers Mayor Mike Spano also touted the new deal. “This project means new jobs for people who live here, more tax revenues for the city and another boost for our economy,” he said in a prepared statement.
“Target seems to know a good location when they see it,” Jenkins said, “because they certainly hung in there long enough.”
