McLaughlin and Barbato Remain Two Key Votes Needed to Pass SFC’s LDA

With the summer season upon us and a budget battle behind them, the City Council’s next big issue will be the Struever Fidelco Cappelli (SFC) $400 million development plan for downtown Yonkers. The council had been working for the past few weeks to amend and adopt a budget, and can now turn its full attention to SFC and the Land Disposition Agreement (LDA), which lays out the project’s terms, payments and benefits to both the city and the developers.

Currently, three members of the council — Council President Chuck Lesnick and council members Patricia McDow and John Murtagh —  appear to support the LDA, while councilwomen Sandy Annabi and Joan Gronowski are opposed. (McDow, however, has recently expressed concerns about the affordable housing component of the plan … more to follow.)

Republican council members Liam McLaughlin and Dee Barbato remain the swing votes, and the two votes needed to pass the LDA. Five council votes are needed because the LDA includes the sale of city property.

While negotiations continue between Mayor Phil Amicone, SFC and the City Council, both Barbato and McLaughlin remain on the fence with serious concerns.

“My concerns are all about the revenue streams in this project. This isn’t what we all signed on for, we thought this was going to bring in a definitive revenue stream,” said Barbato.

Both Barbato and McLaughlin’s concerns regard whether or not the LDA is a good deal for the people of Yonkers. Below are some of the pros and cons of the LDA, all of which are factors both Barbato and McLaughlin are considering.

Pro: The SFC project will create jobs, business activity and vitality to an economically depressed part of the city. The increased traffic could “lift the tide” of other businesses, creating more spending, and sales taxes, in Yonkers.

Con: The project is no longer a guaranteed $1.6 billion development plan. Due to economic conditions, a minimum development guarantee of $400 million is in the LDA.

Pro: The development of the SFC plan would give a boost to the downtown waterfront in Yonkers, the gem that remains underutilized. While there has been some development in the downtown/waterfront district there’s isn’t enough critical mass for a vibrant business and residential district. New office buildings on Main Street are up for sale, and other property owners are waiting and wondering what to do next. The SFC plan would give the boost to the downtown needed so that other projects can follow.

Con: SFC has to layout very little of their own money to move forward with the project under the LDA. Many of the upfront payments by SFC have been removed or modified in the LDA. 

Pro: The $400 million minimum development includes building River Park Center at Chicken Island, a new firehouse at the Cacace center across from City Hall and parking near and around City Hall and River Park Center. At least one residential tower will also be built, along with some form of Minor League Baseball stadium.

Con: One of the biggest pieces of city responsibility to the SFC plan is the $162 million in bonds the city will float to pay for the infrastructure improvements to the downtown. The total cost of the improvements is $212 million, with SFC using anticipated credits from the project to pay the $50 million.

Pro: The construction of residential housing, be it rentals at River Park Center, and/or condos on the riverfront, would bring in new residents, who live, shop and do business in downtown Yonkers. The residential component is currently lacking in the downtown, and a vibrant downtown has activity 24/7.

Con: According to the LDA, SFC has to attempt to secure financing for their project. If they cannot secure financing, they can sit on the two riverfront properties (H&I) that are considered the most valuable piece to the entire plan.

Concerns about how SFC intends to regulate the affordable housing portion of their residential plan have recently come to light. In the LDA, the affordable housing units would transfer to market rate housing after 15 years. McDow called the 15 years “absurd. Fifteen years is a blink of the eye, I was looking for 30 years, which is a good standard.”

“They [SFC] need to come back with something that’s workable for the city,” said McDow, whose vote for the LDA is crucial for passage.

Over the past few months of negotiations, SFC has remained silent, preferring to attempt to win over enough council votes behind closed doors. But the people of Yonkers are talking about SFC.

“I hear from a lot of people two recurring thoughts. One is that this a sweetheart deal for SFC. They are getting everything they want, but who is looking out for us?,” said an unnamed source in City Hall. “And two, how long will this go on for? When will the council vote on this, or when will SFC finally quit?”