WPCNR COMMON COUNCIL-CHRONICLE EXAMINER. By John F. Bailey. October 25, 2007 UPDATED 8:30 A.M.: Robert Weisz of the RPW Group, the office building evangelist who has made millions creating “born-again buildings” coaxed a ten year PILOT from the City of White Plains last night on his latest reclamation project, the former IBM property at 1133 Westchester Avenue, where he plans to build an extended stay hotel. (The hotel is not part of the PILOT agreement.) Thursday evening's matter was to present the PILOT to the Council to see if they had an objection to it.
Rita Malmud, the Council President, was flabbergasted when she learned the Weisz PILOT had been granted by the County IDA last spring, and the council was not told of its existence. No other councilperson batted an eye.
Mr. Weisz came before the council to inform them of the PILOT, and the White Plains Commissioner of Planning explained the circumstances of the PILOT.
Now Wait a Minute....
When Ms. Malmud, in purple sweater, looking at Corporation Counsel Edward Dunphy, indignantly raised a ruckus to Ms. Habel (standing left) with Lloyd Tasch, City Assessor to her left, and the Mayor as to why the IDA had not informed the city the IDA had granted Mr. Weisz a PILOT, Edward Dunphy said the city had been informed, asking the Mayor, “Isn’t the IDA obliged to let the city know?”
Mr. Dunphy answering for the Mayor, said, “We were noticed.”
At that point, Ms. Malmud’s eyes widened and became small and incredulously Malmud asked Mr. Dunphy why the council had not been told. Dunphy said, “it’s not a legislative matter.”
Dunphy explained that the council’s role is not to approve PILOTS but they have the opportunity to object to them. Malmud asked, what happens if they object. Dunphy said, “well, you would stop the project.”
Malmud appeared somewhat mystified by this and asked if the School District had been told.
Board of Ed informed before Council
Ms. Habel said the White Plains Board of Education had been informed of the assessments of the PILOT the previous Wednesday evening (before the Common Council even learned of it Thursday evening).
Mr. Weisz (left) with City Assessor, Lloyd Tasch, explained that he needed a PILOT on the project to attract a major corporation to rent the facility as its headquarters, which he said was now 80% vacant. He could not sign the corporation he is courting to a longterm lease without assuring them of their longterm costs, and this was the reason for the PILOT, which would stabilize the lease terms.
The PILOT, Weisz said was also necessary for him to recoup his costs of renovating the headquarters with a restaurant, a day care center, a spa, and other amenities.
Tasch Exclaims How Income from property is figured
Lloyd Tasch, City Assessor then took the floor and explained how the PILOT was created. The PILOT assesses 1133 in the first year at $1.8 Million of assessed value (it’s sale price), and goes out to 2016 at which point it is assessed at $3.2 Million.
Weisz said he actually felt this PILOT was over assessed because the building is now worth less than it was fifteen years ago, but he would accept it because it was essential to signing his corporate prospect. Mr. Tasch corrected Mr. Weisz and said that the building was worth more now than it was 15 years ago. Tasch took Weisz’s rental of $24 a square foot for the 100,000 square foot building, to begin the PILOT and gradually raised this to $31.50 a square foot during the course of the PILOT. out to 2016.
Councilman Benjamin Boykin after learning of the PILOT assessment, stressed that assessments on commercial property were determined by Income Value of the property, not market value, and wanted the media to get this across to the populace. Mayor Delfino added that in all the development in his administration the city had never given "tax breaks" to a developer. Ms. Malmud gently corrected the Mayor that the city had given tax breaks to affordable housing projects. The Mayor agreed.
Dunphy Gives a Little Bit of Bad News
Mr. Dunphy noted that PILOTS were actually a good thing because coincidently 9 West was going off the tax roles and would pay less than it was paying on a PILOT. The reason for this was, Mr. Dunphy said, the state had just lowered the Equalization Rate which would have the effect of lowering 9 West’s tax below their previous PILOT payment.
Mr. Weisz said the corporation he was courting for the space would bring in 2,000 jobs and said this would be a great benefit to White Plains.
Previously during all the time 1133 was approved for renovation by the council and has been renovated, Mr. Weisz had never mentioned the existence of a PILOT or request for one to the Council’s knowledge.
Mr. Weisz left with the council not objecting to the PILOT.
