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Financing next hurdle for Yonkers housing project
by John Golden
Feb-12-10, 02:35 PM
Having met the redevelopment challenge posed by a new historic district
in downtown Yonkers, Greyston Foundation officials now must find
financing sources for the work-force housing project on which they hope
to break ground by the end of this year.
The nonprofit community services agency has received required municipal
approvals for its Warburton Riverview development, which will include 75
new affordable ownership housing units in a 12-story building at 54-56
Warburton Ave. The project will incorporate six historic facades on the
downtown commercial and residential block, part of the Philipse Manor
Historic District created by the city’s Landmarks Preservation Board and
City Council in 2008.
The landmarking designation forced Greyston’s architect, Perkins Eastman
in Greenwich, Conn., to redesign the project and preserve facades on the
run-down Warburton buildings that had been marked for demolition. City
administration officials have said the historic preservation added $7.5
million to project costs.
Warburton Riverview will encompass seven lots totaling 22,587 square
feet. The housing development also will include ground-floor retail
space, a 2 1/2-story parking garage and community facilities.
The Yonkers Industrial Development Agency board recently gave its
preliminary approval for the project to move forward and to negotiate a
financial incentives package with the developer.
Greyston also expects to receive $2.6 million of a $3.5 million Restore
New York grant awarded to Yonkers in 2009 by the Empire State
Development Corp. for the Philipse Manor Historic District.
Greyston Foundation President and CEO Steven Brown said the nonprofit is
seeking a mix of public and private financing for construction. “It’s a
challenge to go forward in this environment,” he said. Changes to the
project might be needed to attract lenders, he said, including changing
ownership housing to rental units.
“We’re very confident” that interested lenders will be found to finance
the project, he added.
The Warburton project is expected to take two years to complete.
The Yonkers IDA also agreed to schedule a public hearing and negotiate
an economic development package for another downtown affordable housing
project, an approximately $37 million renovation of the 317-unit
Cromwell Towers at 77 Locust Ave.
The developer, GPJ Cromwell L.L.C., plans to replace floors, baths and
kitchens in 96 one-bedroom, 148 two-bedroom and 73 three-bedroom
apartments in the 12-story building. Security will be upgraded and 16 of
the housing units will be specially designed to accommodate disabled
residents. The renovations are expected to be completed in one year.
IDA officials said both the Warburton Riverview and Cromwell Towers
units will be open to households earning no more than 60 percent of the
area median gross income, or $63,180 for a family of four.
“Quality affordable housing for the working families of Yonkers
continues to be one of our top priorities,” said Yonkers Mayor and IDA
Chairman Philip Amicone. “Whether we are creating new jobs, generating
new tax revenue or giving low-income Yonkers residents new and better
housing options, we are committed to making wise investments that
revitalize our city.”
Following public hearings on the proposed projects, the IDA could
approve sales and use tax exemptions for materials and equipment used in
construction, mortgage recording tax exemptions and structured property
tax agreements. Taxable IDA bonds also could be issued for the Cromwell
project.
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