Thursday, February 19, 2009

Backing Into Zoning Change 9

PLANNING

Let’s pause and review: The mantra of the Harmon committee, most of whose members live in Harmon, is “Build it and they will come.” Opponents say it should be “Build it and they won’t come.” Proponents of the divisive Harmon proposal admit they’re greedy for the bigger tax revenues new properties will bring. Fearing a depression is coming, critics say the concept slights other struggling areas of Croton.

Moreover, they point out, every Harmon property, occupied or unoccupied, is still yielding tax revenue. The proposal focuses on the former Dodge and Nappy’s properties. It foresees a developer purchasing them, demolishing the buildings (including a Harmon landmark) and erecting mixed-occupancy structures with ground-floor stores and an indefinite number of apartments on two floors above.

The fly in the ointment is the existing zoning law that must be changed. Opponents of the plan, including this writer, have pointed out that such spot zoning is illegal in New York. Why is the Village getting into the real-estate business and accommodating developers anyway? The Harmon committee cannot guarantee that tenants will show up. One of its members, Jeremy Ezra, 31, currently employed by a New York City real estate firm specializing in large commercial properties, has offered to assist in finding tenants. What the owners of barely profitable businesses elsewhere in Croton will think of this one-sided favoritism to Harmon is anybody’s guess.

With the first phase of new buildings nearing completion, the committee predicts individual property owners will begin to erect matching structures. The scenario goes something like this: I am the debt-free owner of a thriving store on South Riverside Avenue in Harmon, and I live above my store. Succumbing to the committee’s hype, I scrounge for credit and contract for a new building. Next, I close the store, sell off inventory and fixtures at a loss, lay off my two employees, move my household furniture to a storage facility, and rent a furnished apartment.

Fast-forward to the time when the replacement building is ready. After being without income for almost a year. I move into a new upstairs apartment, restock the store and try to entice former customers to return. It’s not easy. Because of my heavy debt load, I must charge higher prices. Kicking myself for ending up with a struggling business, massive mortgage, two empty high-rent apartments above mine, staggeringly higher tax bills—and a view of the new empty stores and apartments of the bankrupt developer across the street.

I have just one question for the Harmon committee: What planet do you people come from?

Monday, February 16, 2009

Backing Into Zoning Change 8

PLANNING

In 2004 Croton declared war on business. Not all businesses, just businesses certain people arbitrarily decided they didn’t want here. The attack weapon was the Gateway Law. Zoning laws usually specify permitted businesses or occupations. Croton turned common practice upside down. It designated five categories of undesirable businesses that any community wanting tax revenue would have gladly welcomed. Croton’s message: “Keep out!”

This 2004 law’s ban on parking lots was probably intended to prevent competition with the Village’s own lucrative station parking lot. Other exclusions foolishly targeted existing businesses—two local automobile dealerships and their storage lots. When the owner of the Dodge dealership discovered that if a fire destroyed more than 50% of his business, it could not be rebuilt, he moved his operation to the former Kayson property.

It turned out that Croton had shot itself in the foot by becoming a business-unfriendly community. Its punitive action actually created the empty Dodge dealership. Planners now call it an eyesore, and are pushing hard to eradicate it. For five years, Croton discouraged tax-paying businesses from coming here. Advocates of the Harmon scheme would have you believe that they can magically attract tenants to new apartments and storefronts in Harmon when existing facilities there are empty.

Other 2004 law prohibitions targeted businesses wanting to come to Croton. Its ban on drive-through windows was initially aimed at the Eckerd pharmacy chain. Eckerd wanted to buy the undeveloped Katz property, but the village said no to a planned drive-through window for prescription pickup. When the village attorney cautioned that it was unwise during negotiations to write a law solely directed at Eckerd, planners added fast-food restaurants to the list of banned businesses as cover.

Thoroughly disgusted, Eckerd decided it didn’t want to come to a community so openly hostile, and withdrew its offer for the Katz property. As TV hucksters say, “Wait, there’s more.” Another shot in the foot. After the Eckerd deal evaporated, the owner of the Katz property sued Croton, charging that the village had, by its actions, caused the purchase to fall through. Croton settled the suit by buying the property, thus taking it off the tax rolls.

Taxpayers are now the unwitting owners of a million-dollar white elephant yielding no taxes and worth less than what we paid for it. The village still doesn’t have a clue about what to do with its unintended acquisition. Such debacles are called “planning.” Meanwhile, we are being offered a snake-oil scheme that would destroy Harmon’s first and oldest surviving building.