White Plains CitizeNetReporter - Cappelli Begins City Center Closing. Fleet Bank GONE.

WPCNR MIDNIGHT EXTRA. By John F. Bailey. UPDATED April 16, 2002 2:15 PM EDT: Paul Wood of the Mayor's office confirmed to WPCNR that the Cappelli City Center closing was on the way. This was what City Budget Director Eileen Earl reported to the Common Council Monday evening, saying Cappelli Enterprises was to have begun its “closing” sequence on its long-delayed financing of the City Center Monday. Ms. Earl said she expected Cappelli to complete the approximately $280 Million-plus financing for the City Center by Friday of this week.

CITY CENTER SITE AT TWILIGHT MONDAY, viewed from City Hall, across Main Street, showing the demolished Fleet Bank ruins. The City Center site is now completely cleared and ready for a $280 Million cash transfusion.Photo by WPCNR

On Monday, the Fleet Bank branch on Main Street, the last standing building on the Cappelli City Center site, was demolished in less than an hour. Observers watched the demolition from the Mayor's Office.

Mayor Delfino described it as "one big BOOM," when the steam shovel began taking the bank down.

The mental health building was totally cleared from the site as of 2 PM Monday, too. At twilight, Monday evening the City Center site was totally cleared.

CITY CENTER SITE AWAITS ARMORED CAR CASH CONVOY: The Fleet Bank Building was pawed down by a hungry steam shovel in less than an hour Monday. The city closed two lanes of traffic on Main Street, while the “claw” did its work. This was the view from City Hall looking Southwest at sunset. Photo by WPCNR

The closing which was expected to take place last September 20, has been postponed to October, November 21, and January, but has apparently got under way at an undisclosed location.

Geoffrey Thompson, of Thompson & Bender, the Cappelli public relations firm returned a call to WPCNR earlier Monday, and said he was unable to confirm or deny that the closing was taking place or its location.

EARL UNLEASHED: Eileen Earl, City Budget Director, (shown passing out copies of her 2002-03 Budget Presentation), reported to the Common Council last night that she expects to bond $21 million of the $23 million the city will pay toward the Cappelli garage in May at the most favorable rates in two decades. $2 million will come from a grant by the Urban Renewal Agency. Photo by WPCNR

Earl: Cappelli financing for 4 floors, not 5

Ms. Earl was asked by Councilman William King how many floors of the City Center Mr. Cappelli was financing. She said it is her understanding "he's working on the 4 because could not convince his financiers (Canadian Imperial Bank of Commerce and Fleet Bank), that he could lease out a fifth floor of retail."

If Ms. Earl is correct on her 4 floors report, this would mean that the Cappelli vision to the Common Council of a luxury hotel is most likely still in play.

The Cappelli Countdown Continues

We will know soon. Mr. Cappelli has until May 20 to present to the council his plans for either a 4-floor or 5-floor City Center, based on the Council resolution made February 20 to allow him 90 days to either bring in a hotel or stay with a plan for a fifth floor of retail.

The endless bankroll about to be replenished.

As of last month, Mr. Cappelli, by his own statement, has been spending a million dollars a week, non-stop since demolition of the City Center site began last July 17 when a steam shovel poked a hole in the old Macy’s facade.

WPCNR estimates he has poured approximately $60 million of his own capital into the project, ($40 million since beginning demolition, plus $17 million for acquisition of the property), bringing his needs to borrow down to approximately $280 million.

City to bond the $23 million for the City Center Parking Garage in May.

The subject of the Cappelli money came up during Ms. Earl’s discussion of the $23 million the city will contribute towards the construction of the new City Center Parking Structure on Martine Avenue. Earl said the city would be bonding for $21 million of the $23 million in May, after the Cappelli organization has closed and received various tranfer papers and agreements from the city next week.

Earl said, in response to Benjamin Boykin, that the city would go to bond in a very favorable market. She said she expected to float the $21 million bond at about 5%. For a comparison, she said, the city bonded for $30 million to build the Galleria Parking garage in 1983 at a 9.5% rate, which the Parking Authority just finished paying off in December, 2001.


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