Who Owns "The Jefferson at Saw Mill" site?

At the first scoping session to determine what environmental issues and impacts will be studied with respect to The Jefferson at Saw Mill, the developer's counsel (Neil Alexander of the law firm of  Cuddy and Feder LLP) was asked whether his client JPI/TDI (the developer) owned the One Lawrence Street property where they want to build The Jefferson.

For unknown reasons, Mr. Alexander seemed to hesitate in answering the question which was repeated several times.  The answer, of course, is no. The property is still owned by Azko Nobel, N.V., a Dutch multinational which is active in the fields of decorative paints, performance coasting and specialty chemicals.

Mr. Alexander did note that even though his client was not the current property owner, they have the right to proceed with their application to seek site plan approval of The Jefferson project from the Town Board.

That is true.

It is customary for a developer to enter into an agreement to buy a parcel conditioned on land use approvals by the municipalities and other governing authorities where the property is located or who have jurisdiction over the site. In the case of The Jefferson, there are many required approvals by various municipalities and government departments. For example, underneath the site is a sewer pipe overseen by the Westchester County Department of Environmental Facilities. The developer's construction plans must be approved by that department and there may even be additional on site inspections if any work ever starts.W Moreover, depending on what happens with the Town Board, approvals for various aspects of the project will have to be obtained from Greenburgh's Zoning and Planning Boards such as variances for the proposed height of the buildings.  A variance is a permitted deviation from the rules a municipality applies to land use and land development as may be found in a zoning code. For example, when homeowners seek to build an extension, they often need to obtain a variance from the zoning codes in terms of setback requirements from their neighbor's property line. For those so inclined, public hearings on variances can be viewed on the Town Board's website which contains recordings of prior Zoning Board hearings.

However, in all likelihood (for which there is no certainty as the actual contract of sale between the developer and Azko Nobel is not public), the most significant condition is the cost of the environmental cleanup of the property which is considered a "brownfield." The Environmental Protection Agency defines a brownfield as "abandoned, idled or under-used industrial and commercial sites where expansion or redevelopment is complicated by real or perceived environmental contamination that can add cost, time or uncertainly to a redevelopment project."

Along these lines, the developer has entered into and been accepted as a volunteer in New York State's brownfields cleanup program. This program provides a number of different tax subsidies to developers who "volunteer" to clean up contaminated land so that it can be developed into more productive uses.  In the case of The Jefferson, this may potentially result in a 40% recovery of its remediation and construction costs.  Whether it is a proper use of tax dollars to subsidize luxury housing is a political issue that has been covered previously on this blog. In fact, the abuse of the brownfields tax subsidies in connection with luxury developments in New York City resulted in major changes to the law in 2015. In Westchester, one of the most cited abuses was the issuance of brownfield tax credits to build the Ritz-Carlton Hotel in White Plains where its BLT steakhouse boasts a 12-ounce American Wagyu ribeye for $94.

 However, the recent legislative changes were mostly aimed at development in New York City and  did not materially impact future developments in Westchester County. It does appear JPI/TDI started its process with the Department of Environmental Conservation just before the brownfields legislation changed. There was also a risk the law itself would not be renewed.

As reported on the website of the Edgemont Community Council, the Town of Greenburgh has entered into a contract of sale of the former Frank's Nursery site on Dobbs Ferry Road.  According to the ECC:

Ever since the Town acquired the environmentally contaminated property in early 2011 in a tax foreclosure sale, Town Supervisor Paul Feiner has been assuring taxpayers that the sale of the property would net millions of dollars for the Town.

Now, nearly five years later, after having a professional real estate auctioneer try to market the property for nearly two years, town officials will ink a deal this week to sell the property for $3,520,000, but with a catch: the Town is on the hook for up to $2 million of the purchase price to get the site cleaned up.

If it costs more than $2 million to clean up the site, either side can walk away from the deal.  While the state (sic) has applied for state funding to help pay for the cleanup, there is no guarantee that any funding will be provided.

As revealed at the February 27, 2015  Town Board work session (which can be found on the Town's poorly designed and non-user friendly website under archived "live" Town Board meetings) there is no current NYS program for towns such as Greenburgh to obtain funding to help pay for the cleanup.

As is true with the Town's contract to sell Frank's to an assisted living facility, the contract between JPI/TDI and Akzo Nobel likely has a similar provision that if the cleanup costs are too high, the developer retains the option to walk away and not purchase the property. That is generally how development contracts work. It is interesting to note that in White Plains, where a contentious fight is ongoing regarding the development of the failed Ridgeway Golf Club, the property was apparently bought by the intended user, The French American School of New York (FASNY)  without being subject to FASNY first obtaining land use approval as to whether it can be converted to a school. Obviously this a risk but many factors go into making business decisions.

According to the Department of Environmental Conservation (DEC), the developer of The Jefferson is scheduled to begin what is known in DEC lingo as "Site Characterization and Remedial Investigation" to determine the scope of the contamination and its plans for remediation. These test results and plans must then be submitted to the DEC's offices in both Region 3 (which covers Westchester) and Albany for approval. However, as the site is over 10 acres in size and bounded on both sides by the Saw Mill River, the investigation could take many months.

As the proposed land use approval process continues at the second scoping session on February 10, 2016 before the Town Board  (the meeting is still scheduled to be held at Greenburgh Town Hall), we should keep in mind this quote from the late David Bowie:


"I don't know where I'm going from here, but I promise it won't be boring."