The White Plains Common Council on Feb. 2 adopted an ordinance authorizing Mayor Justin Brasch and the city’s corporation counsel to negotiate and sign an agreement for the city to take ownership of the City Center garage. The unanimous vote in favor of the ordinance came as Kite Realty Group, which is based in Indianapolis, continued its efforts to sell the rentable retail assets at the center.
The garage was built by developer Louis Cappelli’s company as part of the $300 million City Center retail and residential project that revitalized White Plains’ downtown. The garage has nine stories and spaces for 2,370 vehicles. The city has managed the garage and collected parking fees. When the City Center was built during the administration of Former Mayor Joseph Dellfino, it was anticipated that the city would eventually assume ownership of the garage.
In 2003, the Westchester County Industrial Development Agency issued nearly $27.25 million in bonds to finance the garage. White Plains issued a separate, $24 million bond to finance construction.
John Kite, chairman and CEO of Kite Realty Group had said early last year in a financial conference call for people involved in the financial markets that a deal to sell the City Center was expected to close soon. He subsequently reported that the deal had not moved forward and that the property was back on the market. It was reported recently that the New Jersey brokerage JLL was marketing the City Center retail property.
“Currently, the city has a pathway to acquire ownership at a reasonable rate that would immediately reduce the annual financial obligation of the city while simultaneously allowing the city to perform necessary capital improvements,” Acting White Plains Corporation Counsel Oreen Rich told the Common Council.
Rich noted that Kite and the city have engaged in a dispute over the maintenance of the garage, as well as the actions that needed to take place in order for the city to acquire title to the garage.
“As Kite is attempting to sell the City Center retail facilities, and while the city is still considering acquiring the garage … the city and Kite wish to settle their dispute, representing the first step toward resolving the financial, legal and practical issues surrounding the garage.”
The city would be dealing with LC White Plains, LLC, KRG White Plains City Center, LLC and KRG White Plains, LLC, the White Plains Urban Renewal Agency and the White Plains Center Local Development Corporation to reach a final agreement. Under anticipated terms, the city would be paid $1 million when it acquires garage ownership.
Councilman Jeremiah Frei-Pearson said, “One thing that we hear quite frequently from residents is that we have to do a better job with the City Center, in particular with the City Center garage. That has been complicated because the city has not had ownership of the City Center garage. We’ve had to work with Kite Realty and to be respectful about it Kite Realty has not done a good job in City Center recently.”
Councilwoman Evelyn Alicea-Santiago said, “We want to do everything possible to make that a better space for our residents.”
Councilwoman Victoria Presser said she was eager for the city to take over the garage and “run it the way it ought to be run.”
Mayor Brasch said he hoped the city would be able to “make the garage a cleaner, better and safer place. I’m sure it will take a while but this is a huge step in the right direction.”
