In the April 11, 2013 issue of WestchesterGuardian.c9n
Instead of having the presentation for the proposed Monroe College dormitory on Main Street in New Rochelle first, a public hearing preceded the College’s presentation. This happened at the New Rochelle Industrial Development Corporation (NR IDA) meeting on March 28, 2013. Concerns raised during the public hearing centered on the for profit Monroe College’s finances, present student housing, and the tax abatements sought.
Prior to the meeting City Manager and NR IDA member Chuck Strome, had said Monroe College was scheduled to pay $275,000 per year in projected real estate taxes after the dormitory was built. However, no information was given on how this tax assessment amount was determined and whether it depended upon Monroe College enrolling a sufficient number of students needed to pay off the debt for the dormitory. The question was asked about how much of Monroe’s tuition costs are covered by government grants and entitlements. In the present fiscal climate what would happen to the college’s enrollment if the student financing by the government declined or was lowered? Answers were not forthcoming.
But information distributed the evening of the meeting was the most puzzling for the IDA action under consideration. Apparently, the word “agency” was a reference to the IDA in the resolution One sentence read this agency ” will assist in the acquisitive, construction and equipping of a certain facility consisting of a ground leasehold interest in an approximately .514 acre parcel of land currently owned or to be owned by 370 Main Street, L L C, or a related entity, located at 384 Main Street, New Rochelle…” New Rochelle IDA will virtually own the Monroe Dormitory as of April 1, 2013. While there are many claims about the limited amount of liability the NR IDA will have, there were no provisions listed on whether Monroe College will ever own the dormitory.
The response by IDA members to questions about the legal liability of the NR IDA with this arrangement was was that this IDA had to own the property so that Monroe College could save sales tax and mortgage recording tax.
One resident at the hearing, Laraine Karl, felt Monroe College could afford to pay a fair tax. She cited a Monroe College bus advertisement she saw which cost $88,000. In her opinion the City needed the sales tax and Monroe College should not be granted this abatement. At a previous Planning Board meeting she had noted that a zoning change was needed to allow Monroe College to have administrative offices in the downtown. She did now understand how the Planning Board could have voted for the Monroe dormitory plan when no public hearings on this zoning code change had been held. At a later date, after a City Council hearing, the zoning code change was voted on by New Rochelle City Council. But that was after the Planning Board approved the Dormitory.
The IDA meeting proceded to a presentation by Monroe College’s Vice President, David Dimond. He emphasized the vote was “a reauthorization” of the 2009 approval emphasizing this dormitory would be financed by Monroe with no public funds. The mortgage recording tax and sales tax abatements, if granted, would be paid back in four years with the yearly $275,000 real estate taxes. Dimond said If the abatements are not given , the college “can’t go forward.” This 300 student dormitory building will be the way to sustain the resident programs. He claimed 500 construction jobs and 12 full time jobs would be created. Valeria Orellano asked where the college students live now and was told the students are living in various apartment buildings in the downtown area and this building will allow the college to consolidate them in one place. Gordon Bell asked how the dormitories perform financially. He was told they “lose money” and Allison Hall their already completed dormitory loses money every year. Strome claimed the college creates “direct and indirect: revenue.’ When asked about investments for funding, the answer was this dormitory was not planned as a profit model. Dimond added if this dormitory project does not go forward, they will “pull back” which he claimed would be “a detriment to New Rochelle, He felt the dormitory was Monroe’s “gamble.”
All NR IDA members, with the exception of Gordon Bell, who said he had a relative that worked at Monroe, voted in favor of the dormitory proposal.
According to a previous audit in 2010 of New Rochelle’s IDA the cost per job created was the second highest in the state at $30,500 per job. Do the taxpayers know if this project will be monitored for costs?
Peggy Godfrey is a free lance writer and a former educator.
Lies and Inconsistencies
This David Dimond character should start looking for a new job if you ask me. Does he really think that building a 300 bed dorm will create 500 new construction jobs? What is he building a power plant? Building a stadium creates 500 new construction jobs, not a dorm. http://www.bizjournals.com/philadelphia/news/2011/09/06/philly-lives-first-phase-to-open-in.html
Not to mention, 12 full time jobs? In an earlier press release Marc Jerome stated he was consolidating the apartments they have scattered throughout the downtown area and made not mention of increasing the amount of students they have in housing, why would 12 new positions be created? What are these positions? Are they professional positions, student positions, or are they just “restructuring” and giving current employees new titles?
These tax abatements are nonsense. CNR and Iona are not causing issues such as this, they are not trying to find loopholes to avoid paying the city back. I also find it interesting that CNR and IONA charge double what Monroe charges their students. Monroe charges about $6,000 for 9 months where the published rates for CNR are $11,690 and Iona $12,488. The reason why they are not profiting from Allison Hall is because the are not charging enough to make a profit. They should charge more, and then pay the taxes. Why should we be the ones suffering, and the city losing tax money because Monroe College claims they are not making enough money to pay their taxes? If they can afford to advertise in every subway car, on the B Line bus system, and internet pop up adds they certainly should be able to pay the city back for hosting these felons.
To the contrary dimond.. new rochelle needs monroe to pull back
It seems this dimond character believes monroe brings value to New Rochelle. I’m not sure I nor anyone else sees it the way they do. Since they arrived here in the 90’s they’ve done nothing but bring property values down in the area, and given nothing back to new rochelle. They don’t pay their share of taxes and they use loopholes to shy away from the fiduciary responsibilities at the state and federal level. In fact, the local new rochelle government has been forthright in helping them attain low interest loans backed by the city government placing the new rochelle taxpayers on the hook if monroe’s loan default rate is truly discovered.
Noam Bramson and monroe’s shari rackman have been successful at pulling the wool over the eyes of new rochelle. Maybe they can change the name to mount rochelle and completely destroy the city to get cheaper rents and a more favorable way to land grab from the naive.
I haven’t even mentioned the inability for monroe to educate their students.
This is where the stupidity of noam bramson is at it’s highest and shows he really doesn’t care about the values of his democratic party. These kids are bilked of their financial aid money and only educated on ten percent of their money given to monroe. The rest goes into the mansions the Jerome’s live in and the salaries of the turkey’s like david dimond. Of course he’s going to tell you monroe will pull back. Pull back, how bout get out of new rochelle and never come back. Our ball fields are used at night by you and our youth programs cannot play on them cause bramson has given them to you for nothing.
Use of the ballfields and profit on their athletic programs is another topic of stealing by noam’s brethren. Chuck Strome has given you full usage of the fields and he knows monroe is making a profit of over 10 million dollars on them through the enrollment of their athletic teams. How much does monroe pay new rochelle to use those fields?
Marc Jerome and his daddy have given noam bramson’s campaign upwards of 100k over the last five years. They’ve given Idoni more than 200k in 10 years. And in return they’ve profited over 100 million dollars. I find it hard to believe monroe doesn’t have money to pay their property taxes to new rochelle. The ida and the groups that have allowed monroe to function in this manner are near criminal in their actions and they should be investigated for what it took to buy their vote. Who else is in on monroe’s scam besides bramson? Are there other council members besides rackman on the take from monroe? Time will tell and the truth always comes out.
Nothing would be better if monroe pulled back
It seems this dimond character believes monroe brings value to New Rochelle. I’m not sure I nor anyone else sees it the way they do. Since they arrived here in the 90’s they’ve done nothing but bring property values down in the area, and given nothing back to new rochelle. They don’t pay their share of taxes and they use loopholes to shy away from the fiduciary responsibilities at the state and federal level. In fact, the local new rochelle government has been forthright in helping them attain low interest loans backed by the city government placing the new rochelle taxpayers on the hook if monroe’s loan default rate is truly discovered.
Noam Bramson and his monroe girlfriend shari rackman have been successful at pulling the wool over the eyes of new rochelle. Maybe they can change the name to mount rochelle and completely destroy the city to get cheaper rents and a more favorable way to land grab from the naive.
I haven’t even mentioned the inability for monroe to educate their students.
This is where the stupidity of noam bramson is at it’s highest and shows he really doesn’t care about the values of his democratic party. These kids are bilked of their financial aid money and only educated back on ten percent. The rest goes into the mansions the Jerome’s live in and the salary of the turkey’s like david dimond. Of course he’s going to tell you monroe will pull back. Pull back, how bout get out of new rochelle and never come back. Our ball fields are used at night by you and our youth programs cannot play on them cause bramson has given them to you for nothing.
Use of the ballfields and profit on your athletic programs. Chuck Strome has given you full usage of the fields and he knows monroe is making a profit of over 10 million dollars on them through the enrollment of their athletic teams. How much does monroe pay new rochelle to use those fields?
Marc Jerome and his daddy have given noam bramson’s campaign upwards of 100k over the last five years. They’ve given Idoni more than 200k in 10 years. And in return they’ve profited over 100 million dollars. I find it hard to believe monroe doesn’t have money to pay their property taxes to new rochelle. The ida and the groups that have allowed monroe to function in this manner are near criminal in their actions and they should be investigated for what it took to buy their vote. Who else is in on monroe’s scam besides bramson? Are there other council members besides rackman on the take from monroe? Time will tell and the truth always comes out.
I don’t know who dimond is…
>>>>>It seems this dimond character believes monroe brings value to New Rochelle. I’m not sure I nor anyone else sees it the way they do.
But I’m sure dimond is getting a kickback from Monroe, just as Noam and his cronies are.
>>>They’ve given Idoni more than 200k in 10 years. And in return they’ve profited over 100 million dollars.
Oh…………..what a surprise. But keep in mind, the stupid citizens of New Rochelle have allowed it. So kudos to Idoni (you do mean Idoni and not Idoni II?) for keeping up the kickbacks from his perch in White Plains. Noam will soon be joining him and continuing the corruption.
>>>>I find it hard to believe monroe doesn’t have money to pay their property taxes to new rochelle.
You’re kidding, right? One word – Noam.
Who else is in on monroe’s scam besides bramson? Are there other council members besides rackman on the take from monroe? Time will tell and the truth always comes out.
I’m guessing Idoni and Noam and Procopio and all the other crooks in New Rochelle whose names I don’t know.
But keep in mind – the stupid citizens of New Rochelle have allowed this to happen – FOR THIRTY PLUS YEARS.
So, they’re getting exactly what they deserve.