The Westchester View » Building/Planning

FASNY and Gedney Farms – What is the bottom line for home values?

Ruthmarie Hicks — Sat, 30 Jul 2011 16:42:49 +0000

Recently, I’ve posted several posts on the issue of the French American School of New York and their purchase of the Ridgeway Golf Club. Previously many of the home owners in Gedney Farms enjoyed the wonderful vista of golf course views from their back yards. Most bought their homes with the understanding that should the golf club disappear, the local zoning was for very low-density housing . Now FASNY wants to build a major campus for 1200 students on the grounds.

Below is the proposed plan. The community is a relatively high-end community – though not extravagantly high-end by Westchester standards. It is a quiet neighborhood with no traffic lights and two-lane roads that have no sidewalks. A large private school has bought the property and is seeking to build a campus for 1200 students – plus faculty and staff. The zoning for said facility is not in place and requires a special permit from the City Council.

I am on record as being against the project for several reasons – which I will go into in more depth in future blogs. However, the school is attempting to build a case that much of what they are doing will increase property values for people whose back yards abut the ball fields and parking lots. I have dealt with many buyers over the past (nearly six) years as an agent – and I have found that things like baseball fields, dugouts and parking lots abutting back yards to be extremely challenging – if not immediate deal killers. I would be curious as to the opinions of the public on this issue. There are roughly 45 homes in the direct line of fire.

To that end – I have posted a simple survey that will take less than 5 minutes to complete.

Just click here to take the survey.

Thank you for your participation.

Asking for help from the AR community….The impact of a large school on property values….

Zoning Schmoning – we can get around that!

Ruthmarie Hicks — Tue, 05 Jul 2011 09:14:22 +0000

Zoning – Schomning! That’s what a lot of developers and buyers with deep pockets are saying these days….

In a world increasingly divided between the have mores and the have nots, and municipalities struggling to make ends meet – those with deep pockets feel that minor incidentals such as “zoning” and a “city planning” are small obstacles to be pushed aside with relative ease. All they have to do is purchase a property – zoning not withstanding – plant their flag and impose their “vision” for the future of the land on the community.

Zoning – Who cares? We’ll just threaten litigation if the city refuses us.
Declining Property Values? Change is inevitable - so if a few people get “hurt” in the name of progress – that’s life.
City Planning? – We bought the land – the city will just have to change its “plans!”

FASNY – The French American School of New York is a case in point….

For those who don’t know the story – FASNY bought the Ridgeway Golf Club in late 2010 with the intention of putting a large campus on the grounds. There were several problems with this plan, which doubtless the buyer were aware of at the time of purchase.

The plan did not conform to current zoning.

The land was environmentally sensitive – with extensive wetlands. This is how it came to be a golf course to begin with.

The plan does not conform to the city master plan for that area.

The neighborhood was not built to sustain the type of traffic a campus with 1200 students would impose. It would turn a quite bucolic area into a heavily trafficked nightmare.
Many homeowners in the are would have things like parking lots and ball fields and buildings gracing the edge of their back yards – where there once stood a golf course – decimating home values for a large portion of the area.
A school is of course non-profit – so not taxes could ever be levied – no matter what expense the school incurs on White plains residents. The city of White Plains would have to pay for massive infrastructure changes including – new sewer lines, new drainage systems. The electrical grid would have to be completely overhauled. Roads would have to be widened, new traffic lights put up on what were once quiet intersections. Ongoing outlays would include additional police, fire, medical, and sanitation services, traffic support including crossing guards on an on-going basis.
Should any of this development result in flooding – a distinct possibility given the nature of the land - the city itself could also face lawsuits from neighboring towns if any new development – not-for-profit notwithstanding – causes problems “downstream”. That’s a lot of risk for the city to take on.

All of this expense and risk to accommodate something a development that the property isn’t even zoned for? My first question was what drugs were the FASNY officials taking when they thought they could get away with this and signed the contracts? But apparently – to FASNY – these are trivial issues.

Money equals hubris….

It became painfully obvious that FASNY came to the table with their litigators lined up and ready to sue. Any school where the minimum tuition for one child is over $20,000 has deep pockets.

Already, their attorney has sneaked tape recorders into meetings and used portions of conversations to build their case. This is not the sign of friendly negotiations – but a sign that they are already playing hard-ball.
They have already indicated that the six month moratorium imposed on developing several environmentally sensitive land masses in the area is directed “against them.” Another sign of hard-ball and a path to litigation. Of course a moratorium was put in place! There are several such tracts of land potentially in play. What the city does with the FASNY property sets the precedent as to how the development of the rest of that land is managed when the time comes. The FASNY development does not exist in a vacuum. This is something they should have thought of before purchasing the property.
They have slapped “no trespassing” signs all over the place and have threatened to have any one arrested should they step foot on the golf courses that local residents have walked freely upon for over 70 years. I walked those golf courses every day as a child. Dale Carnegie would not be proud of a move like that.
They’ve insulted our schools indicating that their presence would add “culture” to our obviously inferior educational system.
They claim that because they are a “School” they have to be accommodated. Doubtful. A private school with very well-heeled families is hardly in need of such accommodation and I doubt very much that state law precedent would be ruling in their favor in that regard. Such ordinances were applicable to public schools and perhaps schools for the disadvantaged.
Their “plans” seem to be growing incrementally from the earliest renderings offered at the “get together” for the residents (more like a propaganda meeting) in Jan 2011. Below are renderings of the early plan and the most recent. The “invasion” into the community itself has increased significantly in less than six months.

So does FASNY fit the criteria for the monied developer trying to muscle their way around local zoning?

Deep pockets? – Check.
Arrogant as hell? – Check.
Trying to to find any hook available to have local zoning ordinances overturned? Check.
Threatening the community with litigation and other bully-boy tactics? Check.
Have they hired major PR firms to paint the local community in a bad light? Check.

Can the City Council let FASNY do this?

To me the answer is absolutely NO! I will site three major reasons for this stance.

People bought their homes in good faith and if they did their due diligence – they did so after examining the ZONING. If the zoning of the city of White Plains becomes merely a suggestion, this will impact home prices throughout the city. You permit the undermining of city planning and zoning ordinances at your peril. You think you have a lawsuit issue now – how about ten more down the road once you have established a precedent for caving to pressure.
The city of White Plains has just worked its way through a fiscal crisis. We are still facing cutbacks in our city and school budgets. There is no excuse for the city council to give the green light to a development that will cost the city dearly to accommodate and give nothing back in terms of revenue. How do you explain to a resident earning $50,000 that their taxes are going up – again – to accommodate a school that charges $22,000 (or 44% of their income) a year in tuition while our own school system is in the middle of major cutbacks?
This type of manipulation of zoning codes has the potential to impact everyone in the city. For those in White Plains who think this is a south-end issue – think again. If one property owner can trample over zoning ordinances – what’s to prevent another developer from buying up land or buildings in your area and attempt something equally egregious.

Please NOTE – That the City Council is Meeting Tonight at 7:30 PM at City Hall 255 Main Street in White Plains. Those interested in the status of this project and the moratorium should plan to attend. The last time such a meeting took place FASNY families overwhelmed the council chamber. So their voices were heard. Since they scarfed up all the chairs – elderly residents were forced to leave before they could comment. I had to stand for 3 hours to speak for 5 minutes. Get there early – we should NOT let them monopolize a meeting like that again.

Tom Roach Sworn in as the 18th Mayor of White Plains NY

Ruthmarie Hicks — Fri, 15 Apr 2011 09:59:56 +0000

The ceremony was simple but there was a goodly crowd outside of City Hall on a perfect spring evening to watch the swearing in of Mayor Roach as the city’s 18th mayor. I had been on the road much of the day and was fortunate enough to make it to the event and to have my camera – so enjoy the photos. I was actually carrying the right lens for such an event!

The speech was apolitical and I was impressed as Mayor Roach gave thanks to his family and friends and city employees. If nothing else the ceremony signaled an new beginning for a city that has had more than a few growing pains over the past few years.

White Plains NY Growing Pains:

White Plains has gone through a great deal over the past decade. It went through massive growth during the first years of the 21st century. There was nothing but praise for the “White Plains Renaissance” with super- builder – Cappelli transforming the city’s downtown and creating a true skyline where none existed before. Although the downtown needed to be turned in a new direction – I believe White Plains became a victim of its own success – add a dash of hubris and you are done for.

There is such a thing as too much, too fast and the city was left flat-footed when the biggest recession since the Great Depression hit the city broadside. When you build too much and the buyers aren’t there to absorb the inventory - problems await. When a large percentage of your tax base is based on retail and a major recession hits – it can be cause for concern. Put both of these factors together and – well – you’ve got quite a problem. Not that there weren’t hints of a money problem brewing even before White Plains got smacked with that one-two punch. When former Mayor Delfino was selling city owned land to balance budget shortfalls – it was pretty obvious that there was some rough sledding ahead.

The idea was that the money generated from the newly reinvigorated downtown would pay for all the infrastructure costs – and this did not materialize. As tax rates soared and long time residents felt they were footing the bill for the new downtown while services were being cut caused citizens to fume.

Mayor Bradley:

Into this rather explosive mix entered Adam Bradley. Elected mayor in 2010 – he had held office a mere two months when he was arrested and charged with assault charges. The domestic violence charges created a three-ring circus during a time of fiscal crisis. While his trial continued – the city was facing deep budget cuts or a totally mind boggling 19% tax increase. The massive increase was avoided but the city needed a Mayor who could fully concentrate on the needs of the city.

Thus the election and installation of Tom Roach – a long-time member of the City Council came as relief to many residents who basically just needed closure on this situation. Meanwhile the finances of the city are looking up and sales receipts are looking stronger. We all hope an important page has been turned and White Plains is on its way back.

In defense of NIMBYs – the rights of municipalities to map their own futures….

Ruthmarie Hicks — Sun, 27 Mar 2011 07:36:05 +0000

Sometimes I venture into the blogosphere of politics…OK – I’ll admit it – I’m a political junkie but there are worse faults a real estate agent could have – so please don’t hold it against me. I guess I get some of this fascination with local governance from my late mother who was involved in our local political scene for decades. She foresaw the trend of the shifting burden of the tax base from corporate entities to individuals 15 years before retroactive Certioaris flattened much of the New York tax base like a pancake.

But I digress…

Matt Yglesias wrote a post on the need for moderate priced housing in the DC area and suggested rezoning to allow for greater density. This set off a wave of responses including some rather typical “NIMBY” comments and cautionary tales about how zoning changes may not result in the desired moderate priced housing.

“Not In My Back Yard”

NIMBY is an acronym for “not in my back yard.” It is generally is a derogatory term used for retired busy-bodies who fight such laudable causes as affordable housing, cluster housing and increased density in their neighborhoods. NIMBY’s stand in the way of progress. Even the tinniest whiff of a new development seeking permits is supposed to bring out swarms of fear mongering NIMBYS - each looking for any roadblock no matter how trivial to throw in the way of true “progress.”

Dreaming like a developer…

During the boom, developers created their own swarm and descended into cities like mine (White Plains NY) in an effort to “revitalize” the downtown areas. They sought to imprint “their vision” on these cities. Such visions generally involved a mechanism that maximized profit with significantly higher density and high-end housing. They asked for variances to increase “air rights” and pack more people into a smaller space. These concessions to zoning were often accompanied by tax abatements and numerous other sweetheart deals. These projects were sold to the public with the idea that they would “gentrify” the area and result in lower taxes for all.

The sad fact is that once you added in the tax breaks, the infrastructure changes including sewage, drainage, upgrades to the electrical grid, police,fire, schools you name it – many of these projects became money and resource sinks. Residents fumed as their taxes rose ever higher and the resources they once enjoyed were diverted to these urban hubs because “the downtown needed it.”

Small wonder that new developers with new “visions” for these cities were often greeted by the citizenry like the skunk at a garden party. Their visions were granted them often at the expense of those who had spent years paying taxes and making these locations desirable destinations.

Gentrification vs displacement…

Gentrification is often a euphemism for displacement. As the wealthy move in, the demands for more services that they are accustomed can become a bottomless pit of expense. In the past no one thought of leaving the restaurants open past midnight…but now – everything is open till 2 AM. People are still out at 4 AM on the weekends. That means overtime for police, fire and others involved in keeping the peace -further increasing the tax bite on all concerned.

More high-end restaurants and stores causes rents to rise squeezing out the Mom & Pop merchants that have been around for several generations. Many who had been looking to that new population as boon to business soon find themselves out of business and applying for work at Walmart. High-end boutiques or big-box brands replace the locals until the urban hub is unrecognizable to anyone who had been away for just a year or two. Residential rents rise to impossible levels displacing families who have lived there for years.

NIMBYs have their place….

This type of “progress” is generally not what the local residents of a previously stable community had in mind. Certainly they are sold a different vision of the future. Often it takes some agitators (NIMBY’s) to bring reality back to the city governments and push back against “progress” that acts contrary to the public good…that is the public who actually lives and pays taxes in the community.

So bad mouth the NIMBYs all you want. And if you really want them to go away ….be careful what you wish for – you just might get it.

In defense of NIMBYs – the rights of municipalities to map their own futures….

Update on the Bengal Tiger – Downtown White Plains NY

Ruthmarie Hicks — Fri, 09 Jul 2010 06:15:12 +0000

As posted yesterday, the Bengal Tiger – a landmark Indian restaurant in downtown White Plains went up in flames yesterday. The cooking oil that was everywhere combined with 100 degree temperatures and flammable chemicals from the adjacent dry cleaners caused the fire to rapidly escalate into a 5 alarm fire. Over 160 firefighters from White Plains and neighboring communities responded to the blaze. The roof collapsed about 5 hours after the blaze began. The fire is now “under control” but not over. 25 were overcome by smoke inhalation and the heat and taken to area hospitals.

I drove by this evening to see what had happened. I was going to walk the streets, but decided against it as there were too many bystanders as it was and I didn’t want to be underfoot. The few shots I have were taken from my car, but you can still see the horrific damage. At least half that block is wiped out. The presence of White Plains’ finest and bravest was very dominant – as well it should be.

There are ancillary issues to this fire. One would be that it is a fire under investigation. The Journal News indicated that the restaurant had filed twice for bankruptcy protection in recent years.

Another issue is the down-sizing of the police and fire departments. White Plains residents faced an eye-popping 19% tax increase or layoffs. The unions did not appear interested in negotiating a pay cut or a cut in benefits and something had to give. The mayor and council took a line down the middle through layoffs and increasing copays for retirees and a 6% tax hike. Many are calling for the return of the laid off fire fighters. When I went on-line to see what was going on in the local on-line news – you could hear the hate on both sides. The anger from the union end and the anger from the taxpayers end. I must say here and now that anyone who thought the fire fighters didn’t “work hard enough” need serious psychiatric help. It is entirely possible for a fire to get out of control in that heat with the grease and chemicals creating the “perfect storm.” But I also have to say that White Plains resident’s have seen their taxes nearly triple in the last 12 years. The union demands have been and continue to be totally unaffordable and something had to be done. I will address this issue in a future blog.

The other burning issue for me lies down the road to rebuilding. This area is close to the city center White Plains. You can see Trump Tower White Plains in the background – just a few blocks away. Residents from residential areas have been footing the bill for that beautiful big downtown because it has yet to pull its own weight. So the infrastructure costs of maintaing a city with previously unheard of 42-story high-risers has fallen squarely on the single family homeowner. However, the landlords of the buildings on East Post and down Mamaroneck Ave. towards Main St. have been panting to build UP. Trouble is we can’t afford more handouts to builders. The fire may be an excuse to open up the discussion once again. Be prepared for a fight between the downtown and the south end where most of the residential homes are.

A Taxing Issue: The city of White Plains MUST hold the line on tax increases…

Ruthmarie Hicks — Mon, 03 May 2010 21:20:26 +0000

There is an old saying that there are only two things you can count on in life – death and taxes. Apparently homeowners in Westchester now have a third thing they can count on – exponentially increasing property taxes. Homeowners in New York are up in arms over property taxes. For those who don’t know the region, New Yorkers enjoy just about the highest property tax rate in the country. Westchester has some of the highest taxes in the state – so you get the picture…..In many areas of Westchester, the taxes actually exceed assessed values.

White Plains NY is a case in point. Taxes have been marching to new heights each year. Year after year, the city, schools and county come with their hands out expecting homeowners already reeling from the worst recession since the Great Depression to fork over more in property taxes. Many are hanging onto their homes by their fingernails. And as more and more homeowners feel the squeeze – many will find they can no longer afford to stay in a community that just a few short years ago was quite reasonable and affordable.

Traditionally, White Plains enjoyed significantly lower property taxes then the rest of the county thanks mostly to our large commercial and retail base. But even though that base has increased, the number successful certioari actions has also increased. The net result has been a shrinking tax base in the commercial/retail sector pushing the lions share of the burden onto homeowners. Most notably: owners of single family homes.

Homeowners and city officials in White Plains need look no further than Sleepy Hollow to see what happens to home prices when the homeowners are saddled with an ever more onerous tax burden. This burgeoning problem needs to be nipped in the bud or home values could well suffer.

I chose Sleepy Hollow for a comparison because it is an analogous community in many ways to White Plains. Although city officials and union leaders prefer to liken White Plains to Scarsdale and Larchmont where high taxes are better tolerated, our community profile is in truth more like that of Sleepy Hollow. The commute to Manhattan is similar the two neighborhoods I chose to focus in are are quite comparable in terms of home size, amenities and lifestyle.

Gedney Farms is an established upscale neighborhood in White Plains. Over the past ear the average sales price in Gedney was $993,000 – just shy of $1 million dollars. The average tax bite in these sold home was slightly more than $16,000 per year.

Philipse Manor in Sleepy Hollow is quite similar in many ways to Gedney Farms. However, Sleepy Hollow is a village with relatively little commercial activity resulting in a higher tax burden on the homeowner. Over the past year the average sales price in Philipse Manor was $847,000 – a significant 15% drop from the prices enjoyed by Gedney residents. That’s a difference of $147,000 – not exactly chump change. When you look at the tax bite that Sleepy Hollow extracts from Manor residents, one can see why. Its enough to make your head spin. The average tax on the homes sold that year was a crushing $22,500 or 29% higher than what is seen in White Plains.

Does the tax rate account for the price difference? Uh….ya think? Think of it this way….taxes that high are like another mortgage payment. For Gedney residents its about $1333.00 a month, but that goes up almost $550 a month for Sleepy Hollow residents. Assuming a 6% mortgage rate (assuming they have enough cash to not need a jumbo loan) that translates to a drop of over $90,000 in buying power. If you don’t believe me – the charts below tell the story.

City, county and school officials take note. I know you have turned a deaf ear to the voters on this issue for many a year. Your special interest groups have drowned out the silent majority. But now you are looking off the cliff and into the abyss. Single-family home values could easily implode. Here is the scenario that I fear the most.

Raising the taxes the proposed 19% will make homes in surrounding areas such as Scarsdale, Larchmont, & Rye – more attractive to buyers. Many single family home buyers preferred these areas over White Plains, but high home values put them out of reach. Now that home prices have declined and taxes in White Plains have risen, the trend has been towards these higher-end areas and away from White Plains. Fewer buyers means lower prices.

As taxes rise, those who were hoping to retire (or simply age) “in place” will realize that this is no longer possible. The increase in taxes will be just that extra shove off the cliff that will force many homeowner’s hands. They will have to sell in a bad market. This will push additional inventory onto an already weak market. More homes for sale = more downward pressure on home values.

Further, as home values decline, more homeowners will be able to successfully grieve their taxes. Thereby further eroding the tax base. And the merry-go-round keeps going round and round.

In the past, home owners were just giant money cows to be squeezed to the heart’s content of public officials, educators and unions. But declining home prices translates into lower property values and lower assessed values – and that should put the fear of God into you. The message is loud and clear! Keep hiking taxes and you erode home values AND your tax base.

A Taxing Issue – How property taxes can impact home prices

Ruthmarie Hicks — Thu, 02 Apr 2009 17:15:06 +0000

Homeowners in New York are up in arms over property taxes. For those who don’t know the region, New Yorkers enjoy just about the highest property tax rate in the country. Westchester has some of the highest taxes in the state – so you get the picture…..In some areas of Westchester, the taxes actually exceed assessed values.

Recently, Cut Property Taxes NOW rally signs have appeared around the city of White Plains. They are dotting the lawns of beleagured homeowners fed up with what seems like the unending tax hikes that show no signs of abatement. Right now the center of their wrath is on County taxes. However, many are pointing fingers at local taxes and school taxes.

It was just a few years ago that White Plains enjoyed significantly lower property taxes then the rest of the county thanks mostly to our large commercial and retail base. But even though that base has increased, the number successful certioari actions has also increased exponentially. The net result has been a shrinking tax base in the commercial/retail sector pushing the lions share of the burden on homeowners. Most notably: owners of single family homes. Although there was grumbling during the housing boom – residents were mollified by increasing home values. Now that that bubble has burst, the tax bubble has become the elephant in the room.

I chose Sleepy Hollow for a comparison because it is an analogous community in many ways to White Plains. Although city officials prefer to liken White Plains to Scarsdale and Larchmont where high taxes are better tolerated, our community profile is in truth more like that of Sleepy Hollow – with respect to its diversity and schools. The commute to Manhattan is similar the two neighborhoods I chose to focus in are are quite comparable in terms of home size, amenities and lifestyle.

Does the tax rate account for the price difference? Uh….ya think? Sure does! Think of it this way….taxes that high are like another mortgage payment. For Gedney residents its about $1333.00 a month, but that goes up almost $550 a month for Sleepy Hollow residents. Assuming a 6% tax rate (assuming they have enough cash to not need a jumbo loan) that translates to a drop of over $90,000 in buying power. If you don’t believe me – the charts below tell the story.

Although White Plains has a way to go before it matches the tax rates of Sleepy Hollow, it is catching up fast – and the city and schools need to think seriously about the damage they could do to home values if they don’t get their budgets in check. White Plains still has a relatively low tax rate when compared with other parts of the county. However, that advantage has been eroded over the past few years and the residents must not allow that trend to continue.

City, county and school officials take note. I know you have turned a deaf ear to the voters on this issue for many a year. Home owners were just giant money cows to be squeezed to your hearts content. But declining home prices translates into lower property values and lower assessed values – and that should put the fear of God into you. The message is loud and clear! Keep hiking taxes and you erode home values AND your tax base.

The Tappan Zee Bridge to be Replaced – A new expanded bridge for the Westchester/Rockland crossing.

Ruthmarie Hicks — Tue, 07 Oct 2008 19:36:59 +0000

Magnificent to look at – but less than user friendly for the commuter. The Tappan Zee Bridge has been called the bane of the Rockland county commuter. Someone once referred to it as “a bridge too slow.” Whatever prose you choose to use (including profanity) it is clear that the current bridge – is not enough to service the commuters who rely on it adequately. For months, planners have been meeting behind closed doors discussing plans for renovation and expansion. This week the “grand plan” was released by the DOT and it includes a new bridge to be built next to the old bridge with an eye-popping $16 billion price tag. The services of the expanded bridge are impressive and include a rapid bus transit system that will utilize the I-287 with accompanying expansion and infrastructure changes. This is to provide a mass transit service that will permit effective public transportation from Rockland to business hubs in Westchester such as White Plains. The bridge construction is also being constructed to support a commuter rail system that will hook up with the Hudson Line of Metro-North in Tarrytown for an easier commute to midtown Manhattan for Rockland and Orange County residents. Many public meetings and hearings will probably cause the plan to be tweaked and changed. Construction is not set to begin until 2012.