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2019/05 Real Estate In-Depth

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2019/05 Real Estate In-Depth Vol. 24 / No. 5 May 2019 HGAR Lobbies NYC/Hudson Valley Lawmakers On Eight Key Priorities at Annual Lobby Day By John Jordan ALBANY—Approximately 60 mem- in 2017, but now awaits a study before it bers of the Hudson Gateway Asso- can go into effect, as well as the “Trans- ciation of Realtors traveled to Albany parency and Disclosure in Cooperative on Tuesday, May 7 to join hundreds of Housing” bill that when originally pro- Realtors from across the state and pres- posed would require co-op boards to ent the real estate association’s 2019 give reasons in writing to an applicant legislative priorities to state lawmakers and establish reasonable time frames that represent Assembly and Senate for Co-op boards to act on applications. districts in the Hudson Valley and New HGAR Past President Barry Kramer said York City. that the co-op bill has been modified Tops on the HGAR legislative agenda since it was drafted to now only require were the association’s continued sup- a specific time frame for boards to act port for the NY First Home legislation Approximately 60 members of the Hudson Gateway Association of Realtors on an application, somewhat similar to that passed the Assembly and Senate traveled to Albany to participate in the annual Lobby Day event. legislation passed recently by West- chester and Rockland counties. In connection with the NY First Home legislation, Gov. Andrew Cuomo signed Westchester Terminates Rye Playland the bill on Dec, 18, 2017 but issued a memorandum in conjunction with the approval that required the Division of Contract With Standard Amusements Community Renewal, in consultation with the Department of Taxation and By John Jordan Finance and the State of New York WHITE PLAINS—Westchester County no- Mortgage Authority to study “opportu- tified Standard Amusements, LLC, which nities for, and implications of, a tax-ad- was scheduled to take over operation vantaged first home savings program.” of the storied Rye Playland amusement When originally announced, the study park in November, that it terminated the was scheduled to be complete by June 30-year lease agreement reached in 2018. mid-2016. The legislation would have allowed Late last month Westchester County individuals seeking to purchase their Executive George Latimer reported he first home to establish a savings ac- had reached the decision to terminate count and make annual tax-deductible the Rye Playland 30-year lease agree- contributions of up to $5,000 for an ment. The county has given Standard individual or head of household or Amusements 30-days-notice of the $10,000 for married taxpayers who file contract termination, which will go into taxes jointly. The bill put a cap on con- effect on May 28. The county’s decision tributions of up to $100,000 for the pur- to terminate the agreement was based chase or construction of their primary on what the county termed as Standard residence. Amusements’ failure to cure various Rye Playland opened for the season earlier this month to the largest opening Continued on page 2 day crowd in the past seven years. Continued on page 2 Con Ed Reaches Deal to Expand Pipeline That Could Lift Westchester Natural Gas Moratorium in Four Years By John Jordan INSIDE NEW YORK CITY—Con Edison has pro- gas connections in most of Westchester posed a major project that could bring County it imposed on March 15. The util- SPOTLIGHT ON sufficient natural gas to sections of ity said the new natural gas capacity from Westchester County impacted by the the Tennessee Gas Pipeline could be in utility’s moratorium imposed last month. service by November 2023. The only problem is the remedy won’t No financial terms of the agreement be online for four-and-a-half years at the between Con Edison and Tennessee earliest. Gas Pipeline were disclosed at press Utility Con Edison reported on April 24 time. that it reached an agreement with Ten- “This project offers a reasonable, nessee Gas Pipeline to increase capacity sensible approach to allow an orderly in its existing natural gas pipeline that transition to the renewable energy future Anthony Domathoti, see page 11 connects to Con Edison’s distribution we all desire,” said Tim Cawley, president VIEWPOINTS ................................. 4 system to Westchester County. of Con Edison. “The solution provides LEGAL CORNER ............................. 5 The deal, if approved, would upgrade the time needed to improve non-pipeline and enhance the capability of the exist- technology and make it widely available. RESIDENTIAL ...............................6,7 ing pipeline to transport additional natu- The additional natural gas capacity will PEOPLE ........................................10 ral gas for Con Edison and provide the continue to support economic growth Tim Cawley, president of HGAR UPDATE ..........................11,12 incremental capacity to enable Con Edi- in our region, while reducing reliance on Con Edison EDUCATION/CALENDAR ...............13 son to lift the moratorium on new natural heating oil and the need for locally deliv- ered compressed and liquid natural gas.” LEGISLATIVE/BARRISTER ...........4,14 Con Edison reported that it is con- COMMERCIAL ...........................16,17 tinuing to implement the company’s $223-million Smart Solutions program TECHNOLOGY ...............................18 for customers interested in alternatives MORTGAGE/FINANCE ..................20 to natural gas, including incentives PUTNAM ......................................21 to electrify heating systems, upgrade HVAC controls, install geothermal heat pumps or weatherize their homes. The Section Two increased gas capacity plan, which was approved by the New York State Public Focus on Service Commission earlier this year, Continued on page 2 WESTCHESTER 2 | NEWS Real Estate In-Depth |May 2019 Westchester Terminates Rye Playland Contract With Standard Amusements Continued from page 1 “material defaults” under the contract Latimer has been unwilling to meet with County to be responsible for $33 million erly claimed millions of dollars as part of that were spelled out in a letter from the Standard Amusements since November in repairs, plus $9.54 million associated its contractually defined Manager’s In- county to Standard Amusements on Dec. 2018.” with the pool reconstruction. vestment obligation, which is supposed 7, 2018. The firm continued, “Despite Mr. Lat- The report stated the county could be to represent capital improvements at While the county and Standard imer’s mismanagement and complete responsible for an additional $65 million Playland. Amusements have been in negotiations disregard for visitor safety, Standard to as high as $95 million in additional • The county stated that it is entitled regarding a number of contractual issues Amusements remains more committed capital costs, depending on investments to an annual audit of Standard Amuse- identified by the Latimer Administration than ever to restoring Playland to its for- made by Standard Amusements. ments’ books and records under the last year, the two sides now appear to be mer glory.” In its contract termination announce- agreement; however, the county charges on a clear path to settle the dispute in a that Standard Amusements has prevent- courtroom. “Standard Amusements has improperly ed the county from completing the audit “We are unhappy with the way this and has refused to provide necessary has all turned out; we never wanted this claimed that it invested money in Playland, documentation. kind of conflict,” Latimer said. “However, Latimer stated that the agreement we are simply not satisfied with what we when in reality that money was not spent on has “Westchester taxpayers on the hook have been seeing. We wanted to see the for $125 million, with Standard commit- energy, excitement and drive in Standard purposes allowed under the agreement.” ted for $27.5 million. “My job is to make Amusements’ vision for Playland—we sure Westchester taxpayers come first. didn’t want just a real estate deal.” —County Executive George Latimer The county’s relationship with Standard Latimer stated that Standard Amuse- Amusements must come to a close. We ments “was in material breach” of its cannot have confidence in Standard contract with Westchester County. Standard Amusements stated that ment, Westchester County cited a num- Amusements based on its actions. The Standard Amusements characterized it has worked for nine years and spent ber of significant contractual issues that company has not proven it has been seri- Latimer’s action as “deeply disappointing more than $10 million on its mission to led to the decision to terminate the Rye ous about Playland succeeding,” Latimer and devastatingly false” and added that save Playland. Westchester County Playland contract, including: said. the decision was“nothing more than a noted that since receiving its Decem- • Standard Amusements has improp- means to improperly terminate a 30-year ber letter, Standard Amusements “has contract that was twice approved by su- continued to claim expenses that do per majorities of the Westchester Board not qualify as part of the Manager’s In- HGAR Lobbies NYC/ of Legislators. It exposes taxpayers to vestment (including its legal expenses hundreds of millions of dollars in losses related to our negotiations), for a total of Hudson Valley Lawmakers from Playland’s extensive capital needs $7.7 million according to its last monthly Continued from page 1 report.” and needless litigation.” The HGAR delegation, led by Leg- “Standard Amusements has improp- will not have a problem with it.” He later The Westchester County Board of islative and Legal Issues Council Chair erly claimed that it invested money in added that while he is not a member of Legislators in May 2016 voted 13-4 in Leah Caro and vice chairman Clayton Playland, when in reality that money was the Senate Housing Committee, “It just favor of the contract with Standard Livingston, joined other members of the not spent on purposes allowed under seems to me to be natural that if we are Amusements for a 30-year manage- New York State Association of Realtors the agreement,” Latimer said.
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