WPCNR MAIN STREET JOURNAL. May 4, 2005, Updated 10:19 A.M. E.D.T.: In an exclusive story appearing in The Journal News today, Louis Cappelli of Cappelli Enterprises and Martin Ginsburg  of Ginsburg Development Corporation are reported as having announced to The Journal News an agreement in which Louis Cappelli would pay Mr. Ginsburg $35,000 a unit ($1,470,000) to build the 42 units of affordable housing Mr. Cappelli owes the city for his obligation on affordable housing incurred with the Monday night Common Council approval of the 221 Main Cappelli Hotel Complex. 

Ginsburg also is reported by The JN as purchasing 240 Main Street from the City Center property for $3,000,000, meaning Mr. Cappelli has his $1.5 Million payment for Affordable Housing, as well as the cost of building his "Affordables" ($1.47 Million) he agreed to Monday, paid for, in effect, by Mr. Ginsburg as part of this deal.

WPCNR is placed a call to Cappelli Enterprises public relations agency to see if Mr. Cappelli has retained the air rights over the 240 Main Street parcel, which could be used to build elsewhere on Cappelli-owned property.

Council Approval Backfires. Council Overlooks the Meaning of the Transfer of Site.

The ability of Mr. Cappelli to transfer his affordable housing obligation on 221 Main to another developer to build -- a loophole the Common Council did not foresee in their approval of the 221 Main 40-story plus project Monday evening -- now means that any developer when faced with the 6% requirement can simply find another developer to build it for them anywhere in the city. Tom Roach, Common Council President, alluded to this Monday evening in his remarks, saying the ordinance must be changed.

BIG WINNER: Martin Ginsburg, appearing on White Plains Government Access Television April 21, when he called the Cappelli 240 Main Affordable Housing building "a sore thumb." Mr. Ginsburg was all about assured of city approval for his Pinnacle project yesterday when he agreed to build Mr. Cappelli's Affordable Housing Units for him. Mr. Cappelli's hotel cannot open until the affordable units he owes the city with the project are built.  Photo by WPCNR News. 

Louis Cappelli appearing on White Plains Government Access the same night when he said he would never jeopardize the opening of his $500 Million hotel project by letting another developer be responsible for building the affordable housing units, he, Cappelli, was responsible for building. Yesterday, he changed his mind and is paying Mr. Ginsburg to build his Affordables for him. Photo Capture by WPCNR News

The Pinnacle Model (blue towers)  In Place on City Center Plaza. The 240 Main Street "Sore Thumb," (slightly to the right of the blue Pinnacle building model) as Martin Ginsburg described it -- is not to be. Instead affordable housing will be built, according to The Journal News to the left of the Pinnacle property on the site of Joma's Cafe, slightly to the left of The Pinnacle base. Whether or not Mr. Ginsburg is content to let his Pinnacle remain at 28 stories or go higher is a matter of fascinating speculation . Considering that Mr. Ginsburg now holds the fate of two projects, his and Mr. Cappelli's 221 Main Hotel Condoplex in his hands, he could choose to go up to 40 Stories or more, dwarfing the Trump Tower. Photo Capture by WPCNR News.

The agreement, The Journal News reports,  paves the way for owners of the Corner Nook to open a cafe and Continental Foods to operate their businesses at 238 and 240 Main Street, the area where Cappelli's "Affordables" were going to be built.

However, this means that the Corner Nook and Frank Lombardi's Continental Foods Deli would be out of business while the 240 Main Street plaza project is under construction. By advancing Corner Nook and Continental Foods the ability to return on the 240 site project after it is built, it perhaps allows Corner Nook and Continental Foods to sell that right to some other establishment, or find some other way of sustaining themselves during the three years of construction. Demolotion of the 240 Main Street parcel could begin in advance of any Pinnacle approval, which, of course appears automatic, if not imminent.

The assignment of the 42 affordable units Cappelli owes to Ginsburg all but assures approval by the Common Council of Mr. Ginsburg's project, otherwise Mr. Cappelli cannot open his hotel complex, since Councilwoman Rita Malmud explained Monday that Mr. Cappelli would not receive a Certificiate of Occupancy for his hotel until the 42 affordables were constructed and functioning. Mr. Cappelli's assigning the fate of his project to Mr. Ginsburg's cooperation in getting his hotel open is a position that Mr. Cappelli said on April 21 he would never do because it would jeopardize the opening of his project.