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Tempers Flare During Heated Review Of As-Of-Right Condominium Project Slated For Route 9W Near Rockland Lake State Park
By Tina Traster
The Clarkstown Planning Board is no stranger to drama – some meetings stretch for hours when contentious projects are up for consideration. But on Sept. 25, much of the histrionics played out on the dais with questionable questioning – even harassment – from some of the board members toward a group of applicants that is hoping to build 30 condo units on a 6.2-acre empty wooded lot on Route 9W near Rockland Lake State Park.
Peter Streitman broke the escalating conflagration when, with an expression of perplexity on his face, he asked the board what was going on.
From the outset, the board raised issues with Crystal Lake Condominiums, a project proposed back in 2017 by a consortium of Nigerian-born doctors and real estate investors from Queens and Long Island, that wandered significantly past the purview of a final site approval planning board process. There were inquiries about dryer vents, decks, the intended pricing of the condo units, a letter of guarantee that Veolia will provide water rather than a “will serve” notice, and a request for a Reserve Study from the homeowners’ association to prove the project will not go belly up.
The drumbeat of questions took an inappropriate and heated turn when board member Phil DeGaetano demanded bank and financial statements, information on the project’s investors and silent partners, and a guarantee the developer had no intentions of flipping the project.
“Someone’s worried about the finances,” said DeGaetano, referring to Planning Board attorney Kevin Hobbs’ request for a Reserve Study.
Condominium and Homeowners’ Associations set aside funds as “reserves” for future capital needs and improvements and to meet the financial obligations related to the common areas and association property. The goal of the reserve is to ensure that the project is adequately funded and a source of maintaining adequate funding is in place for the future. A Reserve Study is an independent third-party look at the finances to make sure the project is viable in the future for the residents once the sponsors/developers move on.
“I’m not sure I understand the relevance,” said Simon Rothkrug, the attorney representing Crystal Lake Condominiums.
DeGaetano said the board had concerns about the project starting and stalling and continued to become angrier and more volubly hostile while demanding financial information on the applicant’s partners or backers. He wanted a “yes” or “no” answer as to whether the developer would produce evidence of its financial backing.
“With all due respect, I think that’s inappropriate,” Rothkrug said. DeGaetano barked back, “prove it to us, we want to be at ease.”
9W Valley Cottage LLC, the original applicant, had received approval to build 35 condo units at the site, conditioned on its acquisition of two adjacent lots, but the developer was forced to scale back the project after it was unable to acquire the additional lots.
Planning boards review and approve site plans, subdivisions, and special use permits. They also review plans to ensure they comply with local, state, and federal laws, including SEQRA (State Environmental Quality Review Act). Whether they have the authority to delve into a developer’s finances, partnerships, or source of funds, or set conditions on the ability of a developer to flip a property may be an open question, but historically the Clarkstown Planning Board has not undertaken these types of inquiries with other developers.
After the heated exchange with DeGaetano, board member Edward Guardaro picked up the mantle, asking the applicant what the intended market pricing of the units would be. When the applicant said between $700,000 and $800,000, Guradaro looked skeptical, adding, “I don’t know if there are sufficient number of people to buy homes,” at the price point. He added, “This is not Long Island.”
The applicant told the board it had looked at comparable units and set a price, adding the units would sell for what the market demands.
But Guardaro pressed on. “If the prices drop, your development costs can’t be met,” he said. “There will be financial problems, just a little speculation.”
Planning Boards do not traditionally weigh in on the pricing of condominium units or how those units are marketed.
The applicant once again told the board it was their intention to build a profitable development. To assure the board of the project’s viability, the applicant said they’d been approached by at least “eight developers” who were interested in the site. The applicant is proposing to build 12 buildings with 30 units spitting distance from Rockland Lake State Park and the Executive Golf Course.
The proposed Crystal Lake Condominiums project, which sits in the MF-1 zoning district, does not require variances; it is in an “as-of-right” location.
The Route 9W corridor from Upper Nyack through Congers, still dotted with weathered lake cottages, a former bungalow colony and open land, is ripe for redevelopment. Just as the Planning Board is more holistically trying to understand the impact of the many projects proposed for West Clarkstown Road, the 9W corridor raises issues about environmental impact and traffic given the proximity to Rockland Lake, a state park.
The board pushed the applicant to provide a firm commitment from Veolia that water service will be provided – something no other applicant along that corridor has had to provide. In contrast, the board has been satisfied from other projects with a “will-serve” letter from Veolia, that indicates water service is available for the project. The recently built Kennelly Square project, a senior living complex on Route 9W on the former Kennelly’s Pub site, has been stalled by a dispute between Veolia, the New York State Department of Transportation, and the contractor who’s been hired to hook up water service.
While water service is a concern, the board’s shrillest grilling focused on the applicant’s financial wherewithal, which in that kind of granular detail is an issue that generally exceeds the purview of a planning board.
DeGaetano chimed in again with an anecdote about another applicant running out of money and flipping its project, suggesting developers coming to Clarkstown were deceiving the board by seeking approvals and flipping projects.
Audible gasps were heard in the audience throughout the hearing. At least one of the three applicants sitting in the first row continuously shook his head in disbelief while the volley of questions and answers persisted. Later, outside the planning board chambers, one applicant said, “This was nothing but discrimination. Asking for our financing. It’s racism.”
In what finally felt like a pail of cold water being doused on a fire, board member Peter Streitman broke the escalating conflagration when, with an expression of perplexity on his face, he asked the board what was going on.
“We have never pressed any issues with other applicants like this,” he said. “This is the first time we’re pushing these issues. This is not fair to the applicant.”
Newly appointed board member Roxanne Perrone echoed his sentiment, saying, “I agree with Streitman,” adding “I believe that the owner is trying to say they do have the money, they have many investors.” At that point, tension between Perrone and Board Chairman Gil Heim escalated, with Heim insisting angrily “we’re asking for proof of funding.”
Ultimately, Heim set the next appearance date for the applicant, outlining a request for a letter from Veolia and a Reserve Study.
Meanwhile, another applicant hoping to build six multi-family rental units and a 400-square-foot community center on a half-acre site on Route 9W, just to the north of the proposed Crystal Lake Condominium application, also appeared before the board. The Planning Board refused to allow the developer to advance to the Zoning Board of Appeals for a density variance, and instead urged the developer to come back with a proposal for five units instead of six.
The developer was not asked about his finances, nor was he questioned about the certainty of a water hook-up from Veolia.
Further up Route 9W, just to the north of the northern entrance to Rockland Lake, Snow Church Realty is planning a senior housing project at 36 North Route 9W in Congers in the NS (Neighborhood Shopping) zone, which allows senior housing by Special Permit.
The project consists of twelve one-bedroom apartment in a three story building, each unit between 739-864 square feet. The developer is providing 24 parking spaces. The developer was not questioned about its finances, its partners, its intention to flip the project, or the availability of water service from Veolia.
The applicants are due back on Nov. 13.
