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?”

Yonkers Council Passes Budget, Amicone Vetoes, Council Expected to Override

The Yonkers City Council met last Saturday and approved a budget for the city’s fiscal year, which begins July 1. The council voted 5-2 on an $896 million spending plan, with councilwomen Sandy Annabi and Joan Gronowski voting no.

The council’s budget took Mayor Phil Amicone’s proposed budget and cut an additional $7.1 million to reduce the mayor’s proposed 6.6 percent property tax increase to 5.75 percent. The council cuts also eliminate the need to increase the unpopular income tax surcharge.

Significant details of the council’s budget statement include:

“Recognizing that our proposals will have a direct impact on city services, we, nevertheless, have concluded that the budget we have outlined strikes the appropriate balance between what our citizens need and should expect for city government and what they can afford in these difficult times.
     We have identified areas of spending that were of concern, including overtime spending in excess of budget appropriations, and the use of city vehicles and cell phones by city employees. But most of all, we have simply recognized what every household in Yonkers has learned in recent months. We simply have no choice but to make do with less.

     The adjustments we are proposing will permit the following:

• The authorization of 1,958 full-time municipal employees (seven less than the mayor’s proposal), approximately 100 full-time library employees and funding as requested by the Yonkers Public Schools;
•  Funding for all uniformed vacant positions in the Police and Fire departments permitting new classes of rookies to join the public safety workforce this summer;
• Maintaining twice a week garbage pick-up and all other services currently performed by our Public Works Department;
• Maintaining our Parks Department at full compliment; and
• Maintaining all existing services to veterans and seniors.

We accomplish this with a spending plan that is $896 million. This plan is $7.1 million less than the mayor’s amended proposal, reduces the proposed property tax increase to 5 and 3/4 percent property tax increase and eliminates the need for a 50 percent hike in the income tax altogether. We are able to accomplish this by decreasing the funding for the Yonkers Public Schools by $1 million. The mayor has indicated that the trustees will utilize an additional $1 million from surplus funds available to the schools.

We have also reduced city departmental spending by enacting a 2 percent cut in non-personnel appropriations in all departments saving $860,000. Police and fire department overtime appropriations have been reduced $ 2.2 million and $800,000 respectively as described in alternative plans submitted by the commissioners with their proposed budgets. Funding for non-uniformed vacancies has been removed for a savings of $650,000.

Other departmental reductions that have been implemented are as follows:

• Continued elimination of the ranger program – $500,000;
• Reduction of targeted appropriations in non-personnel accounts – $540,000; and
• Reduction of $100,000 in the city wide fuel account. It is anticipated that the administration will eliminate upwards of 50 vehicles currently utilized in non-public safety areas.     

 This budget also shifts funding for affordable housing subsidies, $1.2 million back to the grant budget under the Community Development Block Grant Program (CDBG) for year 36. It is anticipated that stimulus funds from the federal government will restore programs anticipated to be funded with year 36 CDBG funds.

The capital budget as proposed is $124 million. The council, upon deliberation and reflection on the amount of debt that the city has incurred during recent years, has decided to approve a capital budget of $47 million, providing funding as follows:

• Resurfacing and bridges                                                $2 million
• Library                                                                  $494,000
• Animal Shelter Reconstruction                   $2 million
• Ashburton Avenue Renewal                       $14.6 million
• Yonkers Public Schools                                  $ 28 million”

This statement was made by council members Liam McLaughlin, John Murtagh, Patricia McDow and Dee Barbato and Council President Chuck Lesnick. 

On Wednesday, Mayor Phil Amicone vetoed the budget, primarily because fo cuts to police overtime, which he said would negatively affect the safety of Yonkers residents. The City Council will now call a meeting, yet to be set, to vote to override the mayor’s budget. If the same five council members who voted for the budget vote to override, then the budget passed by teh council will become the city’s budget for the new fiscal year, starting July 1.

SFC’s LDA Made Available to Public, But Negotiations Continue

To view the latest draft of SFC’s LDA, follow the link below: http://www.cityofyonkers.com/index.aspx?page=2025

This LDA is the one that the City Council reviewed over the weekend, but it is unlikely that it will be the final version, as the five votes needed for its passage have yet to be secured, even with recent SFC concessions to build a residential tower at Chicken Island and to build a more substantially complete stadium.

The votes of three on the council – Dee Barbato, John Murtagh and Liam McLaughlin — will be the deciding factors on whetheror not the SFC/LDA will pass.

The developers, and the mayor, need all three votes in order to secure five votes for its passage, which will be combined with Council President Chuck Lesnick’s and Councilwoman Pat McDow’s votes.

Barbato and McLaughlin have asked for detailed revenue figures from the minimum development proposed in the LDA of around $400 million. They have also asked for a detailed list of incentives and infrastructure improvements to be paid for by the city, in the hopes of making a informed decision on whether or not the project is good for the city.

Several on the council have also asked for more time to review the LDA, so the finanical deadline of May 20th from SFC is no longer an issue.

Several new developments were uncovered at the council’s Real Estate Committee meeting last night:

The council is not even close to voting the LDA out of the Real Estate Committee for a  vote up or down — time is needed to read and review the LDA, and to try tonegotiate terms that could win over McLaughlin, Barbarto and Murtagh — remember all three are needed, if, as expected, Sandy Annabi and Joan Gronowski vote no.

This will require serious negotiations and more concessions on SFC’s part. The sale price of city land and properties, and the two-year hold that SFC will have on the city before they are required to build are two issues of concern.

Eminent domain (ED) also came up at the Real Estate Committee meeting, with concerns raised by Gronowski and Murtagh (Murtagh has submitted a resolution against any ED use for devleopment projects with incentives). While Lesnick explained that this deal always had an ED component, if it’s inclusion means that Murtagh votes no on the LDA, the deal’s dead.

Several members of the City Council met with Mayor Phil Amicone earlier in the day, with no resolution. While the mayor wants the council to vote on the LDA, Lesnick realizes that there aren’t five votes, not even close to passing it at this time.

So we wait …

Anthony Merante Announces Council Bid in Sixth District

 

On May 2, Anthony Merante announced his candidacy for City Council in the Sixth District to replace Dee Barbato. Merante will run as a Republican and joins Republican John Larkin and Democrat Ted Winnicki as candidates.

Below is Merante’s statement:

On May 2, in front of 46 Davenport Road Anthony Merante, community leader and activist,  announced his candidacy for Yonkers City Council in the Sixth District.

 Merante has been an advocate for Yonkers Public School children.  With the school system making positive strides, he wants to assure that the progress continues. “I have a vested interest since my two children attend the Public schools.” None of the current councilpersons have children in Yonkers Public Schools. Our children deserve representation on the City Council.

Merante has also been an activist for proper development in the city. He was one of the leading community activists who fought to assure that the building of Ridge Hill Village would not disrupt the quality of life in the Sixth District.  He also wanted to make sure that the residents of Yonkers were not shortchanged on the sale/lease of the property. “Our hard work went down the drain when Chuck Lesnick, whom the community supported, for City Council president, said he would fight with us, but then passed it after being elected with no change to the quality of life issues. I am for development but all issues must be resolved before signing a contract.”

 With regards to our economy and the proposed city budget, “a productive councilperson,” Merante believes, “is someone who can do more with less.” “With proper budgeting and planning, this can be accomplished. Raising taxes must be a  LAST resort. In this economy, when tomorrow’s paycheck is not guaranteed, and real estate values are falling we cannot add insult to injury and raise property taxes.”  

 This can be done when there is trust between employer (government) and employees (the unions). When these two groups trust and respect each other they can work together and save the taxpayers unnecessary financial hardship.  This trust is noticeably missing at this time. “When I have the opportunity to talk with Yonkers union workers, it is obvious that the lack of trust is also paying a toll on employee moral.

 Merante is seeking the open council seat being vacated by Dee Barbato. Barbato is precluded from seeking another term due to term limits. Yonkers City government will have many new members over the next two years. “I have the leadership skills to keep the city moving forward,” Merante said.

Merante is a certified public accountant.  He has resided in Yonkers since 1987. He has been married to his wife for 24 years and has two children who attend Yonkers Public Schools.