WPCNR THE BUILDING NEWS. By John F. Bailey July 7, 2008 UPDATED 3:25 P.M. EDT: The Kensington, a 91-unit assisted living senior apartment complex expected to share the new  $19 Million Longview Avenue Municipal Parking Garage expected to be complete any day now is seeking additional financing according to a letter from the developer, Fountain Square Properties, LLC., of Reston, Virginia, delaying that project indefinitely. Development could begin in February, a principal told WPCNR Monday afternoon, pending HUD participation.

North Street Community, the developers of a 324-unit condominium project, which was approved one year ago, requested an extension of one year, too, in a referral contained in this evening’s information packet furnished the media and Common Council.

Longview Avenue Muncipal Garage, July 2, viewed from Cromwell Place, foreground.  It awaits use by White Plains Hospital Medical Center, on the first three floors. The hospital, according to a spokesperson has not set a date when hospital visitors can use the garage, and that the city has not turned the garage over for their usage yet. The Kensington would be built in the front of the parking garage

The Kensington appearts to blame both rising costs and the city for preventing their starting the project last year,  in their letter requesting an extension, writing :”WPK (White Plains Kensington) has recently received construction bids and has seen construction costs increase by approximately $3,000,000 over estimates at the time of initial project approval.”

The letter signed by Harley Cook, Dan Gorham and David W. Faeber, Managing Member of Fountain Square Development, LLC  reveals the developers are seeking public financing for the project: “the national markets, especially real estate finance, have experienced unforeseen turmoil and distruption. The conventional construction financing market is all but shut down. In light of these factors, WPK has had to pursue financing from the HUD 232, which is especially for assisted living communities. WPK has met with HUD’s New York office, and with the Mayor and City staff to initiate the process…”

David Faeber, the Managing Member, speaking to WPCNR Monday afternoon from Reston, Virginia,said equity has been raised for the project and that HUD is being asked to pay for the construction costs of the project. He declined to say at this time how much the project would cost, because his company was still working out the numbers. He said that  due to the state of the financial markets, they had decided to seek HUD's help with the construction.

He said his company was still very excited about the project and fully expected an answer from HUD in January. He envisioned starting the project weather permitting at that time.

Asked if the project would cost $40 Million, Faeber said, "North of there."

The letter in the information packet provided the Common Council states “The HUD office has informed us that they expect their process to take until January 2009 to complete.”

The letter also discloses that the city asked Kensington to delay its acquisition of the project  site “to allow the City to use the project site (fronting Maple Avenue) for crane staging for the construction of the Longview Municipal Parking Garage.”

Readers of WPCNR will remember, the positioning of the Longview Garage on the site had to be turned horizontal to Maple Avenue, due to unforeseen water table problems encountered in original borings. This necessitated the White Plains Kensington project to be taken off  fronting Cromwell Place, and to front on Maple Avenue instead.

County Department of Public Works Delays North Street Community Job

In the other site plan extension referral, North Street Community, in a letter from its attorney Paul Bergins, notes “Since the adoption of the Resolution, North Street Community LLC has complied with all the time-sensitive conditions of the Approval Resolution, except that approval from the Westchester County Department of Public Works for work required in North Street, a County road, has not yet been received and is pending.”

The letter from attorney Bergins also notes asbestos abatement related to the buildings to be demolished has begun, and the developer “has been negotiating with potential operators of the assisted living component of the project.”

The developer, North Street Community, commissioned a realtor that has been sifting potential partners in developing the property with North Street Community since last August.