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September 21, 2019Cart

Business

by Westchester County Business Journal
by WCBJ

Yonkers IDA approves incentives for $6.5M project at 9-11 Riverdale Ave.

Rendering of new 9-story mixed-use building at 9-11 Riverdale Ave. in Yonkers. Image courtesy Erin Construction and Development Co.

The Yonkers Industrial Development Agency (IDA) has approved financial incentives for a $6.54 million project planned for 9-11 Riverdale Ave. within the Getty Square neighborhood. The developer is Erin Construction and Development Co. of New Hyde Park, Long Island.

Its proposal calls for a 9-story, mixed-use residential and commercial building. There would be 29 rental apartments. The ground floor would feature 2,150 square feet of commercial space. The apartment mix would be six studios, 21 one-bedroom units and two two-bedroom units.

The building would feature a rooftop terrace, a common area of 700 square feet for use by the residents and basement storage and a bike rack. The developer said that it plans to create a project that retains the current look of the existing streetscape but with a modern touch.

Four of the apartments would be set aside as affordable units, more than meeting the city’s requirement for 10% affordable units. The project is in the DM-X Mixed Use District and the developer notes that the Getty Square area has high-pedestrian activity, is a few blocks away from the Metro-North Railroad station and is served by Bee-Line and MTA express buses.

The site is currently a vacant lot and was the subject of a legal battle between its former owner and the city of Yonkers. Structures on the land were unoccupied and had deteriorated to the point of partially collapsing. The city found that they constituted public safety hazards and tore them down. The owner at that time claimed that the city did not give proper notice, which would have allowed the situation to be remedied. A lawsuit against the city was unsuccessful.

The property was sold on Jan. 4, 2017, by 9-11 Riverdale Realty LLC to 9-11 Riverdale JBM LLC for consideration of $700,000, according to documents on file with the Westchester County Clerk’s Office. Named as a party associated with buyer 9-11 Riverdale JBM LLC was John Murnane, who also is the founder and CEO of Erin Construction and Development Co.

Alana Smith, Erin Construction’s COO, told the Business Journal, “We’re absolutely enthusiastic. We’re excited because it’s our first partnership in the city of Yonkers. We’re delighted to bring to the market this project particularly since we’re also looking to do community programming on the ground floor. We’ll be able to bring cultural programming for children and young adults as well as the residential component.” The company is looking to partner with a group called Third Space for arts programs.

Smith said that because the project will not include on-site parking, the developer will pay the city a fee of $945,000, which will go into a fund that’s under development by the city that will be used to help with parking elsewhere within the district.

“The funds will be paid by the end of construction and before a C of O (certificate of occupancy) is issued,” Smith said. She said that they hope to be able to have shovels in the ground by October or November.

The IDA granted a 10-year payment in lieu of taxes (PILOT) agreement for the project that the IDA says will allow it to be a viable project and meet its benchmark returns for the developer. The developer originally had requested a 30-year PILOT. The IDA said that by going with a 10-year PILOT rather than a 30-year PILOT the project will generate an additional $700,000 in property tax revenues for the city.

The project also will receive sales tax exemptions from the IDA of about $228,897 and can also receive a mortgage recording tax abatement.

The IDA’s board of directors approved the incentives for the 9-11 Riverdale Avenue project at its July 31 meeting.

In other action, the IDA also:
• gave final approval to a sales tax exemption of up to $133,125 for a $1.5 million project by Oz Moving & Storage to make improvements to a warehouse it is acquiring at 498 Nepperhan Ave. Oz is moving from the Bronx and will be bringing 100 jobs to Yonkers with another 50 expected to be created within the next few years.

• provided preliminary approval of incentives to be determined for Yonkers Contracting’s new building housing an office, construction equipment and a vehicle workshop at 969A Midland Ave.

• gave Maple Realty Management LLC preliminary approval for financial incentives for a building to house a Dunkin’ Donuts franchise at 987 Central Park Ave.