The New Rochelle Industrial Development Agency granted preliminary approval July 30 for two projects that would cost an estimated $183 million and create 423 dwellings.
The Cappelli Organization of White Plains and The NRP Group of Cleveland, Ohio, would receive more than $8.4 million in sales tax and mortgage tax relief if granted final approvals. The developers also are seeking property tax abatement, but have not yet submitted proposals.
The smaller of the two projects ”“ NRP”™s $63 million Lincoln Renaissance Apartments ”“ is arguably the more transformative proposal.
The site, at 116 Guion Place, is next to Lincoln Park on the outskirts of downtown New Rochelle.
NRP wants to demolish the Remington Boys & Girls Club, replace it with a larger, modern 21,000-square-foot facility and build an 11-story apartment building and 5-story parking garage.
All 179 apartments would be offered as affordable housing to tenants whose incomes range from 30% to 80% of the area median income.
The Boys & Girls Club was built in the 1950s and is city-owned property.
“While it is a beloved community asset,” Jonathan Gertman, an NRP vice president said during the IDA video conference, “it is not able to live up to what the community deserves and needs. That”™s what this project will do.”
The garage will have 356 parking spaces for the residents, the new club and anyone using Lincoln Park.
The park itself has undergone recent renovations of the swimming pool, basketball court, baseball field and playground.
“The whole area will be in much better condition than three or four years ago,” Charles Strome III, the city manager and IDA chairman said.
NRP is asking for a $21,800 mortgage tax exemption, $2.6 million in sales tax relief on materials bought for the project, and a 30-year property tax abatement plan.
The project would create about 265 construction jobs and 13.5 full-time equivalent jobs.
NRP has financial commitments from state, county, private and nonprofit entities, according to its IDA application.
It hopes to begin work later this year and finish by May 2023.
The larger of the two projects, Louis R. Cappelli”™s proposed 28-story, 244 apartment tower at 247 North Ave., downtown, would cost about $120 million.
The site is between North Avenue and LeCount Place, and Huegenot and Main streets. It is near several other Cappelli structures, such as Trump Tower, New Roc City entertainment complex, the Lofts at New Roc and The Standard, a recently completed apartment building.
A small commercial building on North Avenue, near the U.S. Post Office, would be demolished. The tower would include parking for 211 vehicles, 3,032-square-feet of ground floor retail space, a pool, fitness and yoga rooms, and a terrace.
The developer wants to attract empty nesters, according to its IDA application, single professionals and young professionals with no children.
The project would create about 300 construction jobs and 10 full-time equivalent jobs.
Cappelli is asking for a $750,000 mortgage tax exemption, $5 million in sales tax relief, and a 20-year property tax abatement plan.
The developer hopes to start work in March 2021 and finish by March 2024.
The IDA scheduled public hearings on the projects for Sept. 30.
Why is New Rochelle giving away $8.4 million to Real Estate developers?
Why not give existing homeowners a similar tax break instead?
Why do homeowner and other small businesses have to pay the mortgage tax and the big developers dont?
That should be reversed so that homeowners and small businesses pay no mortgage tax and just the big developers are the only ones to pay.
Its interesting to see that New Rochelle is doing so well financially that in these failing economic times they can give away millions in tax breaks to potential developments while the City of New Rochelle’s current businesses and residents are barely making ends meet.