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September 17, 2019Cart

Business

by Westchester County Business Journal
by WCBJ

Yonkers IDA approves $13.6 million in tax help for three apartment projects

The Yonkers Industrial Development Agency (IDA) has given preliminary approval for three projects that would create nearly 1,000 rental apartments in distressed neighborhoods near downtown.

The proposed projects would cost about $391 million and create nearly 1,300 construction jobs, according to the developers’ applications for financial assistance.

The Yonkers IDA board approved $13.6 million in sales tax and mortgage tax relief for the developers at its Jan. 11 meeting. The developers are also asking for property tax abatement for 20 years, but the terms of those tax breaks have not been determined.

Rendering of the Ludlow Point project.

Ginsburg Development Cos. in Valhalla has proposed two projects near the Ludlow Metro-North train station, which it is billing as gateways to downtown and the waterfront.

The $200 million Ludlow Point project would include a promenade overlooking the Hudson River, connecting to a refurbished O’Boyle Park and to downtown. The $14 million 70 Pier Street project includes plans to apply for state grants to renovate Abe Cohen Plaza.

A new entrance to the train station would be built at Ludlow Street and Riverdale Avenue. Ginsburg also envisions artist housing, galleries and an event space at 116 Ludlow St.

Ludlow Point would be built at 150 Downing St., where Ginsburg would buy a vacant lot from the city to supplement property it already owns.

The project consists of two 10-story and two 11-story towers with 520 apartments and 10,330 square feet of retail space. Plans include a club lounge, fitness center, swimming pool, business center, indoor parking for 529 vehicles and outdoor parking for another 110.

Most of the units would be rented at market rates and 52 would be offered at affordable rates.

The project would take six years to build, beginning a year from now and finishing by the end of 2025.

70 Pier Street would be built next to Abe Cohen Plaza, south of the train station. Ginsburg acquired the property – a former Yonkers Parking Authority building – at public auction.

The plans call for a 4-story building with 36 apartments, indoor parking for 35 cars, a roof deck and a lounge.

The apartments would be built in 16 months, beginning in April 2020 and finishing by July 2021.

Ginsburg estimated that the two projects will create 19 permanent jobs for the buildings and 28 part-time retail jobs.

The developer asked for more than $7.7 million in tax relief, according to its applications, including $5 million for sales and use taxes during construction and $2.7 million in mortgage tax exemptions.

Ginsburg stated that it needs IDA financial assistance to make the projects economically feasible and attractive to private lenders.

Rose Associates of Manhattan has proposed revitalizing a “now derelict and largely inaccessible” industrial section area north of downtown.

A rendering of the Alexander Street project.

Rose’s $177.3 million project would be built at 57 Alexander St., which consists of five warehouses and a storage shed. The developer has an agreement to buy the property for $23 million by the end of the year from Altman Stage Lighting Co., the occupant, Altman Holdings LLC and Ron Rob Realty Corp. The stage lighting company plans to relocate its business, according to Rose’s application.

The developer proposes connecting the project to the waterfront with a public walkway along the Hudson.

Plans call for a 7-story building with 440 apartments and parking for 443 vehicles.

The structure would be built in 24 months, beginning in July 2020 and finishing by June 2022.

Rose said the project will create 631 construction jobs and 10 permanent full-time jobs after the building opens.

Rose asked for nearly $5.9 million in tax relief, including $3.8 million in sales and use taxes during construction and a $2.1 million mortgage tax exemption.

The exemptions, plus a 20-year property tax abatement, “will help make the project financially viable,” Rose states on its application.

Ginsburg said it uses a blend of union and nonunion contractors, “subject to competitive bidding and market-rate wages.” Rose said it intends to solicit bids from union and nonunion contractors.

Neither developer agreed to be governed by a labor agreement with the Building and Construction Trades Council of Westchester and Putnam Counties, require contractors to hire union labor or require contractors to pay prevailing wages to nonunion workers.

In granting preliminary approval for the projects, the Yonkers IDA board agreed to negotiate tax abatement deals and other terms. Each project must also be presented at a public hearing, before being considered for final approvals.