WHITE PLAINS, NY -- County Executive Robert P. Astorino today announced that Westchester's Industrial Development Agency (IDA) has approved a series of financing and incentives that will enable three major economic development projects to move forward: a senior affordable housing complex in the City of New Rochelle. With a total of $90 million in private investment, a senior affordable housing complex in the Village of Mamaroneck; a professional housing complex in the Village of Elmsford,the projects will create 232 jobs.
The transaction fees paid to the IDA on the projects will generate more than $330,000 which will be used to support small businesses and stimulate job creation.
"Whether you are a professional, young family or a senior, we are committed to providing convenient, modern and environmentally safe housing for our residents,” said Astorino. “These 367 new and newly renovated homes help to fulfill our commitment thanks to the great relationship between Westchester’s IDA and these business leaders."
New Rochelle Senior Affordable Housing
The purchase and renovation of Washington House in New Rochelle, proposed by Mountco Construction and Development Corporation, is a $47.4 million project, which will receive $23.6 million in financing and tax incentives through the IDA ($23 million in tax-exempt bond financing, $383,500 in sales tax exemption, $299,000 in mortgage recording tax exemption). This project will create 78 jobs. The 211 senior housing units are located at 60 Union Avenue. The rehabilitation will begin in October and take about a year to complete.
"This $47.4 million renovation project will modernize the homes of hundreds of Westchester residents and make them more environmentally friendly too," said John Madeo, executive vice president of Mountco. "County Executive Astorino and the IDA helped move this project forward so these buildings can now be maintained as a quality affordable housing resource for years to come."
Mountco will hire minority and women contractors from the local community who have been recruited through Grace Baptist Church in Mount Vernon and the City of New Rochelle. In addition, local youth will be hired for the project through the New Rochelle Municipal Housing Authority’s NY Youth Work Construction Training Program.
Mamaroneck Senior Affordable Housing
The purchase and renovation of the Mamaroneck Towers, proposed by Elmsford-based Wilder Balter Partners, Inc is a $15.8 million project, which will receive $13.7 million in financing and tax incentives through the IDA ($13.5 million in tax-exempt bond financing, $90,000 in sales tax exemption, $177,580 in mortgage recording tax exemption). The project will create 31 jobs.
"This is the first time we have worked with the county’s IDA and we are very impressed with the responsiveness and willingness to support this important project," said Kathleen Rubin, vice president of Wilder Balter Partners, Inc. “We are looking forward to partnering with the IDA in the future on other upcoming projects.
The 75 senior affordable housing units are located at 235-237 Halstead Avenue, across from the Metro North train station in Mamaroneck, and will be outfitted with new windows, kitchens, baths, flooring and air conditioning. The work will also include conversion of the existing boiler, upgrades to the common areas and the feasibility of solar panel installation will be explored. Renovations are expected to begin in December and to be completed by November 2015.
Elmsford Professional Housing Complex
A new market rate rental complex to be built at 290 East Main Street in Elmsford, proposed by locally-based SME Development Partners, LLC, is a $26.9 million project, which will receive $899,000 in tax incentives through the IDA ($650,000 in sales tax exemption, $249,000 in mortgage recording tax exemption). The project will create 123 jobs and increase the property tax revenue nearly fourfold (from $130,000 to $425,000). The land has been vacant since 2007.
"The support from County Executive Astorino’s economic development team will help me accelerate this project and get shovels in the ground this fall," said Steven Eickelbeck, principal of SME Development, LLC. "The sooner we get started, the sooner we can provide much needed rental housing for the county’s professional workforce."
The 81-units will be located just off I-287 nearby downtown White Plains, and is expected to attract professional tenants looking for convenient, modern housing. The development will include the following amenities: a fitness center; a community room with a bar, television lounge, billiards table and private meeting areas; a rooftop terrace with landscaped lounging and dining areas; and ground-level landscaped outdoor seating areas with fire pits.
The IDA board provided preliminary approval for the project contingent upon continued discussions regarding the addition of affordable housing units and pro-rating the tax benefit to exclude the retail portion of the property.
The IDA is a public benefit corporation created in 1976 for promoting and encouraging economic development in the county primarily through assisting in the creation or retention of jobs.
The IDA is also empowered to issue taxable and tax-exempt bonds for organizations meeting federal and state guidelines. There is no financial risk to the county or to county taxpayers. The obligation for repaying the debt rests solely with the organizations.
Any corporation or small company looking to access the low-cost and tax-exempt project financing made available through the IDA should contact Jim Coleman, executive director of the IDA, at (914) 995-2963 or [email protected].