WPCNR CITY HALL CIRCUIT. By John F. Bailey. May 20, 2004: Rita Malmud, White Plains Councilwoman, advised WPCNR by telephone today she had shared her concerns with Corporation Counsel Edward Dunphy about Louis Cappelli's statement Wednesday afternoon that he was considering not completing his purchase of the air rights over the City Center garage. Ms. Malmud said Mr. Dunphy advised her "he would get back to me."

HOW MUCH AIR IS THERE? The City Center Air Rights on Display. Councilwoman Rita Malmud raised the question today with City Corporation Counsel Ed Dunphy on whether Louis Cappelli can build 221 Main with only half the air rights over City Center Garage. This is the City Center today, looking West from The Westchester. The Trump Tower at City Center is on the left at 20 stories and rising. The City Center Garage with air space above it is in the dead center of your picture. The Health Club on the City Center Garage roof is to the right and above the Chrysler sign. One City Place, the renting-up North Tower rises on the right. Photo by WPCNR News

Ms. Malmud defined her question as whether or not Mr. Cappelli needs to purchase "all the air rights" over the City Center Parking Garage, in order to build 35 stories at his 221 Main Street Cappelli Hotel/CondoPlex. She said that Mr. Cappelli paid the city $500,000 in May of 2002 and another $500,000 in May of 2003, and that he had another three years to purchase all the air rights in payments of $334,000, $333,000, and $333,000.

IN DELIBERATION: City Corporation Counsel, Edward Dunphy. Photo from WPCNR News Archive

Councilwoman Malmud raised the issue with WPCNR that "Cappelli doesn't own all of them, and it is not clear whether he owns half the air rights."

CAPPELLI'S RIGHT HAND MAN, Bruce Berg, (left, with Mr. Cappelli, March 25), President of Cappelli Enterprises, returned WPCNR's call to report that "I own half the air rights, and that is all I need to build (221). I paid $1,000,000 for half the air rights."WPCNR asked if this is the way the contract to purchase the air rights was written, (incremental transfer of ownership), and Berg said, "Yes." Photo From WPCNR News Archives.

WPCNR has placed a media inquiry with City Hall as to whether any air rights remain over the City Center Parking Garage, and what the total square footage of air rights existed at the outset of the Cappelli air rights deal. However, the question that arises is whether the air rights if Mr. Cappelli chooses not to purchase the balance of the as-yet-undefined square footage, are worth anything now that the health club has been built.

Ms. Malmud noted that Mr. Cappelli has to pay his $334,000 to continue his purchase within the "next few days," or several weeks thereafter. The city could use the $334,000 in its general fund, considering its tight budget squeeze. WPCNR is attempting to determine if Mr. Cappelli does not make the $334,000, whether the rights revert to the city, or could be sold off to another developer.