MacQuesten Development is asking for $7.8 million in local tax breaks, as well as millions of dollars in state and federal tax credits, to build affordable housing for senior citizens in the Village of Ossining.
The Westchester County Industrial Development Agency reviewed plans by the Pelham-based developer at a public meeting on Sept. 22, for a $43.35 million project that will include 74 apartments, retail and community events space, and parking at 136-140 Croton Avenue.
The 0.8-acre site was occupied by Sunshine Valley Nursery from 1997 through 2017, according to state Department of Environmental Conservation records, and from the 1940s to 1997 by a gas station, taxi service and auto repair shop.
AMAK Development LLC of Greenwich, Connecticut acquired the property in 2018 and by early 2020 all structures had been razed.
The proposed 3.5-story Crescent Manor Ossining building would be designated for people who are at least 62 years old and whose incomes range from 40% to 60% of the average median income. A studio apartment, for instance, would rent for $891 to $1,376 depending on income, and a one-bedroom for $946 to $1,466, according to IDA reports.
MacQuesten is asking for a sales tax exemption during construction of $1,155,750 and a 30-year property tax abatement totaling $14,530,684 (or $6,641,861 at the present value of revenue discounted over three decades of inflation.)
The developer has also applied for about $2.9 million in federal and state low-income housing tax credits, a $148,000 New York State Energy Research Development Authority incentive, and yet-to-be determined state Brownfield redevelopment tax credits.
MacQuesten needs the financial assistance, economic development consultant Michael Grella told the IDA board, because affordable housing cannot generate enough cash flow to cover expenses.
The project is expected to create 151 constructions jobs, five permanent jobs, and more employment spurred by economic activity during construction and new household spending.
For every $1 MacQuesten gets in financial assistance from the county, the project will generate an estimated 51-cents in new county tax revenue from higher property taxes and economic activity.
The calculation is based on $960,648 in foregone tax revenue, including the discounted value of future property taxes, and $491,747 in new tax revenue.
The IDA report did not calculate the cost-benefit ratio for Ossining, the schools or the state.
Grella noted in a report and in his presentation to the IDA board that the cost-benefit ratio is low compared to other apartment projects supported by the IDA. But it would also create needed, affordable housing and improve a blighted, low-taxed property.
Also, he said, MacQuesten qualifies as a Minority and Women Owned Business Enterprise. Rella Fogliano founded the company in 2003 and is the CEO.
MacQuesten has built affordable housing in the Bronx, Brooklyn, Mount Vernon, New Rochelle, and Yonkers.
The next step for the IDA would be to consider inducing the project, and if that preliminary approval is granted to hold a public hearing and take a final vote.
MacQuesten could start construction by next June, according to an IDA report, and finish the project by September 2025.
