White Plains CitizeNetReporter - The Ritz Confirms! Ritz-Carlton Cappelli Rides on Dropping a Floor

6 O'clock Lightning Edition, Updated 1-24-02, 12:15 AM: The Mayor’s Office said Wednesday that the Cappelli Enterprises request scaling back of the retail element of the City Center with the prospect of adding a luxury hotel to the complex, would be considered in two parts. The first part would involve a site plan amendment removing the top floor from the City Center. The Council will take this up Thursday evening at 7 PM. Consideration of a Ritz-Carlton hotel by the Council would come later.

WPCNR learned Wednesday that the Ritz-Carlton has confirmed they are interested in working with Mr. Cappelli.

The Ritz-Carlton possibility became more than just charisma Wednesday. City Hall received confirmation the world class hotel management firm, with 49 hotels worldwide, was ready to link up with Louis Cappelli.

THE RITZ CARLTON RSVPS to Louis Cappelli their interest. WPCNR has obtained the letter confirming the premier luxury hotel organization's interest in becoming an anchor property of the City Center.PHOTO BY WPCNR

At 5:15 PM Wednesday evening the city received this letter that the Ritz-Carlton faxed to the Cappelli organization from James M. Erlacher, Vice President, North American Development for the Ritz-Carlton organization, in Bethesada, Maryland.

The letter confirms "Marriott's interest in working with Cappelli Enterprises on the development of a Ritz-Carlton Hotel and Residences as part of the White Plains City Center mixed-use development in downtown White Plains."

Mr. Erlacher closes the letter with this statement,

“The Marriott development and Ritz-Carlton design teams have the resources available to support your development (the City Center) and design teams throughout the planning process. We look forward to working with you to bring a Ritz-Carlton Hotel and Residences to downtown White Plains.”

The Common Council Considers Thursday Night.

The pathway to a “Ritz-Carlton White Plains” now starts in a two-step process as explained by City Information and Economic Development Officer, Paul Wood.

Wood told WPCNR the only Cappelli matter before the council in the scheduled Thursday evening work session would be Louis Cappelli’s request for Council approval of an amended site plan, reducing the City Center from 4 floors to two. The effect, Wood said opens up more “views,” for the North City Center apartment building fronting on Main Street by lowering the city center one story, providing more views for approximately 6 floors.

Trimming the retail.

Wood said the city that the removal of one floor of retail space, the top floor, which consisted of a bowling alley and a planned Bally’s gymnasium was the matter the Common Council would deal with Thursday evening.

The effect of this, Wood said, according to Cappelli, relieves Mr. Cappelli of having to rent the space and “overbuilding retail,” and speculated the change in plan would make it more attractive to financiers. The change enhances the views and attractiveness of the North apartment complex tower.

Opens Doors for Luxury Hotel.

According to Cappelli spokesman, Geoffrey Thompson, the treatment of the floor reduction also is the first step in opening the door for the Ritz-Carlton to build a luxury hotel attached to the complex.

On tap Thursday: More Lease Information Promised. Some Sketches? Maybe.

Wood, the city media wrangler downplayed the substance of Cappelli’s scheduled appearance before the Common Council Thursday evening, advising that Cappelli had told the city he would be announcing lease agreements between tenants, and providing information on his closing on the financing. Wood said Cappelli would go over the reasons for the site plan amendment, and perhaps, his grandiose, eleventh hour plan to invite the Ritz-Carlton hotel into the complex.

Wood, at least, was not expecting anything highly detailed. He said Mr. Cappelli had lead the city to believe that he might show “some sketches,” of the change, and perhaps how the hotel might fit in, but Wood did not know what Cappelli would bring to the table Thursday evening in the Common Council Work Session. Wood said Mr. Cappelli had not shown plans of any kind, and just spoke of them in his earnest persuasive style.

Report from Atlanta: Ritz-Carlton doesn't own its hotels.

The faxed confirmation of Ritz-Carlton’s interest to Cappelli Entertprises arrived within minutes of WPCNR’s telephone conversation with Stephanie Platt, Vice President of Communications for Ritz-Carlton, in Atlanta.

We spoke with Ms. Platt on the general rules of engagement when the Ritz-Carlton organization considers a site for a new property. Ms. Platt said that the organization does not own any of its hotels, that it is a hotel management organization only, leading to the conclusion that Mr. Cappelli would own the hotel, while Ritz-Carlton would manage it.

Key Fact: The Ritz does not build properties or pay for construction.

Ms. Platt advised WPCNR that the way the Ritz-Carlton adds properties when it wants to expand to a location is to work with a developer interested in a Ritz-Carlton on that developer's site.

Ritz-Carlton, she said, does not pay for the construction, but instead enters into a management agreement with the developer to manage the developer’s Ritz-Carlton property once it is built. The developer/owner owns the hotel, she reports, the Ritz-Carlton runs it. This is the standard way Ritz-Carlton operates, Ms. Platt said.

The Ritz supervises the design.

Platt also revealed that the Ritz-Carlton does have total control of the design of the hotel. They provide their own design staff, she said, and they decide what the hotel looks like in terms of site placement, amenities, room make-up, every aspect of the hotel.

Ms Platt was checking back with the organization development office for details on the City Center project and the Ritz-Carlton present situation with Cappelli Enterprises.

Mr. Wood advised WPCNR that should the hotel project move further along, it would require new plans and design to be brought before the Council, and submitted to all departments.


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