New Rochelle IDA Meeting: Revising UTEP in Response to NYS Comptroller Audit, Pipeline Review, Lloyd Robinson Resigns

The New Rochelle Industrial Development Agency held their Regular Meeting this afternoon.

The three highlights were the formation of a UTEP Sub-Committee, a review of projects currently in the IDA pipeline and the resignation of Lloyd Robinson from the IDA Board.

Robinson said he could not recall how long he has been on the IDA but around 12-15 years. Robinson defended his work on the IDA saying that his answer to critics who say the IDA gave away money willy-nilly is the drive across the Throgs Neck Bridge into the Bronx where, if you look left, you can see 4 buildings that were not there before.

As part of its corrective action plan in the wake of the scathing IDA Audit by the New York State Comptroller, the IDA is creating a customized Uniform Tax Exemption Policy (UTEP) for New Rochelle. The Comptroller’s office found that in all its years in existence the IDA did not follow any standard process although it claimed to use a boilerplate version of the UTEP guide created by the State of New York. A working group was created among IDA Members to build on staff recommendations by making their own recommendations. The UTEP Sub-Committee consists of David Lacher, Gordon Bell and Meredith Adler Hilton with Development Commissioner Michael Freimuth serving ex-officio. At some point the IDA will publish a draft on the web and hold public hearings to comment on the new UTEP. To put that in plain English, for all those who have been complaining for years about the IDA this is the only chance you have ever been offered to have a voice in the policies by which the IDA considered tax abatements and other benefits for developers. This is VERY big deal.

Commissioner Freimuth gave a Pipeline review.

1. Burling Lane (30 unit, housing/condos, 10% affordable housing) — this project has run into financing problems. As presented to the City Council a few months ago the developers said they would not require any government assistance. Mayor Bramson beamed excitedly as the news was delivered to the City Council. Well, not so much any more. The developers have now sought New York State funding, the State is requiring 20% affordable housing and rental units not condos, and now the developers are nosing around for both Sales Tax Exemptions and PILOT. Freimuth said he was discouraging the PILOT applications but felt the Sales Tax Exemption might be a good idea.

2. Locust Avenue/Main by Monroe College (97 unit housing/condo, 40% affordable housing) — Environmental Impact Study now underway, developers are seeking a PILOT and a density bonus. Jeremy said the project included some retail. Chuck called minimmal, said 1,500 square feet.

3. United Hebrew (73 units, HUD 202 housing (seniors)/HUD 232 housing (assisted living) — The project is to convert a vacant building, seeking PILOT and Sales Tax Abatement. David Lacher disclosed he sits on the board of United Hebrew and so would have to recuse himself.

4. Bellaqua (industrial/office space) — The project would be to build out the second floor of the old Bally building behind Trump Plaza. They plan to spend $2mm to $4mm for a specific tenant, a medical tenant. They want a Sales Tax Exemption.

There was some kerfluffle over the minutes of the meeting so they were not approved, there was a sub-lease authorization for Emerald City and an attempt to schedule the next meeting as the date on the calendar (2/24) is President’s Week and Sussman and Strome will be out of town. Chuck insisted he was planning on getting very far away from snow.

A brief comment on the addition of Development Commissioner Michael Freimuth to the IDA. Having observed IDA meetings before and after Freimuth took on his current role at IDA meetings, there is a real improvement. The addition of the video cameras, the posting of the agenda on the City web site, the work on the UTEP, are all positive indicators. Freimuth is proving to be a real asset for New Rochelle.