Developer agrees to pay New Rochelle $9 million, years before due
AvalonBay Communities has agreed to make $9 million in land payments to the City of New Rochelle over the next five years, about two decades ahead of schedule, city officials said today.
The company, which owns two residential towers downtown, has agreed to pay $3 million in 2010 that was supposed to have been paid in 2029. It will also pay $1.5 million annually starting in 2011 and ending in 2014, money that was not due until 2035.
City officials asked the company to make donations to the city to help deal with dwindling revenues in a tough economy. That request, first made by Councilman Louis Trangucci in September, resulted in months of negotiations and finally an agreement for advance payments.
Trangucci said he wanted AvalonBay to help out because the company has a generous tax agreement with New Rochelle that absolves it of city, school and county property taxes on its buildings until 2028. Instead, AvalonBay makes payments to the city that amount to about $650,000 a year.
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its the difference between a stable developer who understands that a vibrant community surrounding his
investment is important and those who simply want to
hit and run
There’s more here than meets the eye. Find out what it is before the fit hits the shan. In addition to the fact that there is surely a LOT about this deal not being adequately described here, it is Incredible that our city “fathers” agreed to accept 1.5 million dollar payments in lieu of taxes that is due starting in the year two thousand and damned thirty-five. In 2035 money, that’ll be worth twenty six dollars.
Knowing one of the admin assistants to a top exec. Avalon treats their people real good. This is a great thing for New Roc.