A Florida developer presented plans to the Westchester County Industrial Development Agency on April 26 to build apartments in White Plains if it receives $8.5 million in tax breaks.
Mill Creek Residential Trust, of Boca Raton, proposed an $89 million project that would create 189 apartments in an old industrial building near the White Plains train station.
If not for public financial assistance, Mill Creek asserted in its application, it is unlikely to undertake the project.
The proposed Modera White Plains would be built at 39 Westmoreland Avenue. The site is in an industrial area alongside the Metro-North train tracks, between White Plains Honda service center and the Norden Lofts apartments, near Kittrel Park, and a quarter-mile away from the train station.
The 94-year-old vacant warehouse has been used for light manufacturing and commerce, including by Zachy Wine & Liquor.
The plan is to gut the building, retain the vintage industrial facade, and build an 8-story structure with 189 apartments. It would include parking for 282 vehicles, charging stations for electric cars, a gym, garden, business center, pet spa, billiard lounge, and a public “pocket park.”
Construction could begin this fall and be completed by early 2026.
Mill Creek is asking the IDA for a mortgage tax exemption of nearly $300,000, sales and use tax exemption during construction of almost $3.2 million, and property tax abatement for 13 years that would save the developer about $5 million.
The proposed tax breaks total $8,589,283. The county’s portion of foregone tax revenue would be about $1.1 million.
The project is expected to create 267 construction jobs and one full-time and one part-time job after the building opens.
Twenty-three apartments would be rented to people who make no more than 80% of the area median income.
The Modera White Plains would also eliminate blight in the neighborhood, according to an analysis by IDA economic consultant Michael Grella. It would employ many county residents and generate taxable economic activity during construction.
The city, school district and county would receive less tax revenues on a more valuable property, due to tax abatement, but would receive more revenue than they get now on the vacant property.
The current property tax is $147,385 a year, according to Mill Creek’s application. But under the tax abatement plan, payments would begin at $152,550 in 2024 and culminate at $1,682,351 in 2036.
Mill Creek would also clean up the site, including removal of asbestos in the building and possible fuel oil contamination and other contaminants in the soil and ground water.
An IDA consultant, Camoin Associates, calculated that the financial assistance would cost the county $1.1 million but generate more than $2 million in fiscal benefits. That works out to a cost-benefit ratio of 1.85: every $1 of county tax incentives granted to Mill Creek could generate $1.85 in tax revenues.
The IDA took no action and is expected to vote on the proposed financial assistance at a future meeting.
Collect the tax, if the development can’t stand on its own then don’t build it. Why not give homeowners this tax break instead of these out of town developers?