WPCNR Common Council Chronicle-Examiner. By John F. Bailey. November 14, 2004: Martin Ginsburg, the principal of Ginsburg Development Corporation, broke media silence Saturday when he told The Journal News he would eliminate affordable housing units from his Pinnacle project if he was forced to lower the height of the building to 230 feet. Bill Madden, a spokesperson for Ginbsburg Development Corporation, confirmed this new stance by the developer to WPCNR Saturday. It is the first time a developer has chosen to challenge the council 6% affordable housing resolution.
Frendly Gathering: Susan Habel, left, Louis Cappelli, center, Martin Ginsburg, right, facing camera, shmoozing at the Gala last Monday night. Mr. Cappelli's deal for Mr. Ginsburg, is in abeyance, while Ginsburg lobbies the Common Council to eminent domain the Nook-Deli-Bookstore building to make way for The Pinnacle. Photo by WPCNR News.
In a development first reported by WPCNR last Tuesday, it was learned that Louis Cappelli, the Super Developer, owner of the City Center and partner inTrump Tower at City Center, had offered a compromise deal to Mr. Ginsburg which would allow Ginsburg to build the Pinnacle.
Mr. Cappelli told WPCNR at Monday evening’s White Plains Performing Arts Center Gala, that he was willing to transfer the Corner Nook/bookstore/deli building to Mr. Ginsburg, allowing Ginsburg to build Pinnacle, providing Mr. Ginsburg lowered the height of the Pinnacle condo-retail complex to 230 feet, instead of the planned 280 feet.
THE NOOK OF THE MATTER: The Corner Nook Cafe. Ginsburg needs it. Cappelli has it. Somethin's gotta give. Photo, WPCNR News Archive.
The Pinnacle, on Main Street, Condominium atop restaurants and retail needs the Nook property to obtain an approval from the Common Council. Photo, WPCNR News.
WPCNR called Mr. Ginsburg’s offices for comment. Mr. Ginsburg, through a press spokesperson said he had no comment, was proceeding with his request that the city eminent domain the nook-deli-bookstore building, and that “they would not negotiate in the press.”
Yesterday, Mr. Ginsburg went a step farther in his relationship with “the press” by telling a reporter he would not incorporate affordable units in his condominium if he was forced to lower its height.
This is the first direct legal challenge to the Common Council 6% affordable housing rule that has been applied to all new projects built recently, including the two City Center apartment towers, Clayton Park, Bank Street Commons, and JPI’s The Jefferson.
Condo 6% Affordable Policy in Chaos.
Looming ahead is a policy decision that the Council has to make: how Louis Cappelli will meet the 6% affordable housing proviso on his condominium-hotelplex in progress at 221 Main Street. According to Bruce Berg, Cappelli Enterprises President, the site plan approval for 221 Main Street does not spell out how the hotel-condo-plex is to meet its obligation to make 6% of its units affordable housing. With demolition continuing, the annex to the Bar Building emptying, and foundation work beginning, the hotel-condo-plex is going up, with no decision on how the affordable housing requirement will be met.
Until last week, it appeared that Mr. Cappelli would pay a fee to fulfill this obligation, as outlined by Commissioner of Planning, Susan Habel last spring, in a sketchy arrangement that the council never voted into official policy.
The fee Mr. Cappelli himself speculated might range as being as low as $500,000 to as high as $5,000,000, depending on pricing of Mr. Cappelli’s condominiums in the hotel-condo-plex, to satisfy the 6% requirement.
Physical Unit Stock Compromised In favor of Fiscal Units?
According to Benjamin Boykin, the Common Councilman, speaking to the Council of Neighborhood Associations last week, the council is going to take another look at this issue of how builders of new condominiums satisfy the 6% affordable housing policy of the city. The council has come under pressure from affordable housing advocates to force builders of new condominiums to provide actual condominium units in their buildings rather than pay a fee in lieu of providing units.
William Null, Martin Ginsburg’s attorney went over at length with the Common Council last month the reasons for requiring a fee to meet the requirement during his representation of condominiums planned for Maple Avenue. He emphasized that his clients wished to take the fee option created at the time when Mr. Cappelli’s hotel-condoplex was seeking approval.
Not Official Policy Yet. Ginsburg Protesteth.
However, as Mr. Boykin pointed out last Tuesday, this fee arrangement is not official policy yet.
Mr. Ginsburg has the council, apparently in a legal quandary, based on how the Council approved the 221 Main Street Cappelli Condo-Plex.
The Common Council approved the Hotel-Condoplex without specifying how affordable unit policy was going to be satisfied, and approved a transfer of development rights to the Hotel Site to enable Mr. Cappelli to build 35 stories.
The Council is being asked by Mr. Ginsburg to eminent domain a building to pave way for his project that the council refused to do for Mr. Cappelli, and Mr. Ginsburg is asked the Urban Renewal agency to provide square footage from the City Center Garage to complete the 100,000 square foot parcel to complete the project. Mr. Ginsburg, citing the transfer of development rights granted Mr. Cappelli, could say, “why can’t you do the same for me?”
Yet, the council expects Mr. Ginsburg to comply with the affordable housing statute, that they did not enforce as part of the approval of the Cappelli hotel-condoplex.
