WPCNR Common Council Chronicle-Examiner. October 4, 2006, UPDATED 2:20 P.M. E.D.T. with Financials: The Pinnacle, the Ginsburg Development Corporation 28-story luxury condominium housing, received a mixed blessing from the Council which voted to “refer out” a Pinnacle request for extension of time before The Pinnacle has to post a Guaranty Agreement and posting of financial security,  until April 2007. 

Councilperson Rita Malmud questioned Corporation Counsel Edward Dunphy closely on the council’s ability to enforce the “linkage” of the Pinnacle to the 221 Main Ritz-Carlton opening. Malmud has  realized that in view of The Pinnacle difficulty in getting financing together it will affect The Pinnacle ability to build the 52-unit affordable housing at 260 Main Street by fall 2007, when the Ritz-Carlton is scheduled to be occupied and require a Certificate of Occupancy.

Mr. Dunphy noted that the likelihood of the Pinnacle affordable housing being built by “late 2007” the time when 221 Main Street is targeted for completion and a certificate of occupancy, is unlikely. Ms. Malmud asked what would happen if The Pinnacle failed to cobble together its financing by next April (the deadline of the proposed six month extension). Dunphy said the responsibility for the Cappelli portion of the affordable units would revert back to Mr. Cappelli. Where Mr. Cappelli would build that housing was not conjectured by Mr. Dunphy.  Malmud said she would hope that Mr. Cappelli would commence immediately building his affordable housing share (24 units) immediately if The Pinnacle were to default, saying she would do everything in her power to withhold the certificate of occupancy from Mr. Cappelli until his “share” of the affordable housing was built.

Mr. Dunphy, in conciliatory tones, when Malmud asked about what recourse the council had to enforce the affordable housing Mr. Cappelli owes, be built, said the council recourse was that they could without certificates of occupancy from the second tower (now rising above ground level), as a means of enforcing the affordable housing piece.

The  Pinnacle is supposed to supply a Guaranty Agreement and posting of financial security on October 7. The council would need to extend the agreement shortly to avoid the responsibility for the affordables reverting back to Mr. Cappelli.

$16.3 Million and rising.

Cost per unit: $313,461

Documents supplied with the Common Council agenda place the cost of the 52 units of affordable housing to be $16.3 Million (with construction listed as being $12 Million of that total, and the balance in fees). The $16.3 price tag now with $20 Million in funding sources, shows that the cost to build each of the 52 units is $313,461 -- comparable to the cost of building Louis Cappelli luxury apartments and condos.

 The Pinnacle reports as supplying $6,377,704 of its own equity, and is attempting to lineup financing from Restore New York Initiative ($1 Million) by December 31; HHAP Grant of $1.4 Million by December 31; $364,000 from Federal Home Loan Bank by January 2007, and $2 Million from Westchester County New Home Lands Acquisition fund by November 30, 2006. The documents state this sum of $4.7 Million in grants would be on top of Pinnacle’s $6.4 Million of equity. A White Plains Urban Renewal Agency “bond issue” of $8-9 Million is expected to finance the rest of the project.  (The White Plains URA is only listed in the documents as supplying $4M in funds through bonds, but has authority to offer $8-9 Million). Low Income Tax Credit Equity is also sought and would contribute $6.3 to the project.

 The Pinnacle Affordable Housing By the Numbers. Photos by WPCNR News

"This extension is necessary to afford our client time to secure various governmental grants, which are necessary to the financial viability for constructing the fifty-two (52) units," the letter requesting the extension said.

Demolition on The Pinnacle project was supposed to have begun in September, but it did not. The letter states,

"Accordingly, during the additional time needed to obtain commitments from these governmental funding sources, Pinnacle-Westchester LLC will review its design for this building. It has completed one-hundred percent Design Development Drawings upon which its construction estimates have been based. However, further engineering is needed so that alternative structural systems or other modifications mayf be implemented to achieve cost savings."

Following is the fund sources and tax credit calculation and "use of funds" supplied as requested by Councilman Benjamin Boykin: