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September 16, 2019Cart


by Westchester County Business Journal

New Rochelle IDA gives tentative OK for $23M in tax subsidies for two apartment projects

The New Rochelle Industrial Development Agency has granted preliminary approvals for two apartment projects that would give developers at least $23 million in tax subsidies.

Huguenot Partners LLC proposed a 28-story structure at Huguenot Street and Centre Avenue at the May 29 IDA meeting. Mill Creek Residential Trust LLC presented plans for an 8-story structure at 24 Maple Ave.

The projects are expected to cost $241 million and create 619 dwellings.

The Huguenot project would be built by Fuller Development Co., a subsidiary of the Cappelli Organization of White Plains. The applicant, Huguenot Partners, is affiliated with DHA Capital of Manhattan.

Huguenot Partners initially proposed two 14-story towers but now wants to build one, 240,000-square-foot 28-story tower. It would have 285 apartments, an indoor swimming pool, fitness center, lounge, yoga room, game room, parking garage and 1,000-square-feet of retail space.

The $100 million project would be marketed to empty nesters, young professional couples with no children and professional singles, according to the IDA application.

The developers hope to begin construction in August and finish by late 2021. The project would employ about 300 construction workers and then 15 full-time employees.

The IDA board agreed to a $3.6 million sales tax exemption and $2.1 million mortgage tax exemption. The developers also want property tax abatement for 20 years, but the preliminary IDA application does not include a schedule of payments in lieu of taxes that would disclose the size of the subsidy.

The previous proposal for two 14-story buildings asked for property tax abatement worth $11.5 million over 20 years.

The Maple Avenue developer – Mill Creek Residential Trust – is based in Dallas.

The apartments would replace a vacant Catholic school on property owned by the adjacent Church of the Blessed Sacrament.

The $140.6 million, 310,499-square-foot structure would include 334 apartments, fitness center, home offices, clubroom, rooftop lounge, indoor parking, three courtyards, a public “art alley” and a 2,400-square-foot nonpublic parish hall for Blessed Sacrament.

The project would employ about 700 construction workers and then 10 full-time employees. The developer hopes to begin work by the end of the year and finish in fall 2022.

The proposal calls for a $843,612 mortgage tax exemption, $3.7 million sales tax exemption and 20-year tax abatement deal that would cost $19.3 million in payments and save $12.7 million in property taxes. The vacant school property pays no property taxes.

Both proposals will be evaluated by the IDA’s economic consultant, National Development Council, and presented at public hearings, before the agency considers final approvals.