Why did Louis Cappelli’s organization release news to the Yonkers Tribune that the contract with Target in New Rochelle’s New Roc had expired? Geoff Thompson, the spokesman, blamed it on the bank not approving the transactions and said “as a result construction on a new retail space in New Roc City could not commence by the committed date of March 31.” He claimed Target requested that the contract remain open until May adding there was another prominent retail company under discussion. More curious is the date of this press release which was one day after the New Rochelle IDA (Industrial Development Agency) meeting. If another retail business is under discussion, why isn’t the New Rochelle City Council and IDA being consulted?
Many people in New Rochelle cheered when they were told by Cappelli that he would bring Target and Kohl’s to New Roc. The IDA granted a PILOT (payment in lieu of taxes) with the specific stipulation that it would not be granted until Cappelli is issued and pays for a building permit. Consequently the original IDA PILOT for New Roc which calls for escalating higher PILOT payments each year to the City for the next five years is now in effect.
The question remains: did the City’s agreement with Cappelli for Target and Kohl’s run out or is this Cappelli’s business agreement with these retailers? Will the residents of New Rochelle feel they have again been given another false hope, and that as Robert Service the poet would say, “A promise made is a debt unpaid”?
A real estate broker in New Rochelle, Anthony Sutton, felt this project and others could be on hold for the next two years. “We are not in an overnight recovery. Prospective buyers are not paying the high prices of yesteryear and are looking for bargains.”
Kurt Colucci, a resident, had these observations.
“Along with many other overburdened New Rochelle taxpayers I am frustrated with the lengthy process that has held New Rochelle taxpayers captive to external commercial interests. I understand the financial trepidation on the part of Cappelli’s lenders, retail chains and other potential investors. However, New Rochelle must re-balance its tax base structure in order to provide much needed relief to homeowners here in our “jewel” of a City Our elected officials should work tirelessly for our residents.”
Another resident also had a strong viewpoint. Lorraine Pierce said “Louis Cappelli is having huge financial problems and has personally broken many promises in the past so I doubt this “deal is for real”. My answer to Cappelli — show me the contract.
A Councilman, Louis Trangucci, who has continued to question IDA agreements claimed in the proposed fifteen year agreement, $33 million in abatements would be given. This would require these retailers to generate more than 2 million dollars per year in sales tax revenue. He doubts these retailers could bring in that amount of sales tax, especially in this economic climate.
In the May l0 issue of the Westchester Herald
Geoff Thompson’s interview
Geoff Thompson’s interview is just a set-up so New Rochelle grants yet another extension for Capelli’s LeCount Square project. He’s waving the carrot all over the place and hoping we never get close to the stick.
A pure shame in my mind as LeCount Square will never be built. How could Capelli build another tower next to the one thats mostly vacant? The answer is that he won’t. He’ll want to have the Trump Tower on better footing before swamping New Rochelle with even more unsold condos. And that’s not happening any time soon.