Politics & Government

Planning Board Members Fume Over The Hearth Tax Exemption Disclosure

Mount Kisco Planning Board members were upset to learn on Tuesday that The Hearth at Mount Kisco could get a tax exemption if a deal is made with Westchester County's Industrial Development Agency.

Board member Ralph Vigliotti said that he felt like they have “been deceived." He added that they tried to move along the project quickly because it was thought that it would be good for the village tax-wise and because of the facility, which calls for building 129 senior housing units on part of the former Swiss Benevolent Society site.

Board Chair Joseph Cosentino bluntly said he is "upset." He hopes that the matter can be straightened out to benefit the village.

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Board member Stanley Bernstein was especially vocal, bringing up a dislike for the project.

“It's an abomination and now it's even worse," he said, also noting that the project was sold on the village being able to make money.

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Mark Miller, who is attorney for the proposal but is not involved in the IDA aspect, told the board that exemptions would be for sales taxes on materials purchased and for the mortgage tax on anything that is financed. The Hearth would technically - a point Miller emphasized - be exempt from property taxation. However, there would then be a required negotiation for a Payment in Lieu of Taxes (PILOT) deal with the village.

The project, when an earlier version was studied in an environmental impact statement, was projected to generate about $495,000 annually in property taxes, according to Village Attorney Whitney Singleton. Planning Board members were unaware of the IDA application until Singleton, who learned that a public hearing is coming up for it, told them at the Tuesday meeting. The meeting also served as the start of a public hearing for a special permit for the proposal. The hearing, which attracted no public speakers, was adjourned to Sept. 10.

The Hearth is being developed by a team: A joint venture between The Fortus Group and Hearth Management, and Robert Mishkin, who was previously in charge of an earlier iteration called Westchester Residence & Club before it was put on hold due to a bad economy. 

Christian Sexton, a principal with Fortus, and Carl Guy, an official with Hearth, gathered with board members at their table. Sexton describe the IDA matter as a  “financing opportunity" and said it's been "out there for months.” He also said that the route they are exploring is not financing from the IDA, other than sales and mortgage tax benefits. 

Asked about the issue after the meeting, Sexton described the IDA route as a “next step in the process.” He also described the financing issue as a “different avenue.”

Talk at the meeting turned to what role, if any, the planning board has in the financial aspect of the proposal. Cosentino felt that planning is their business versus financing. Bernstein, however, took an opposite position.

“Financing is our business as well.”

Singleton said that fiscal impacts are within the board's purview, such as what happens to the school district. However, he also explained that the IDA entitles the applicant to certain benefits. 

The mood eased towards the end of the meeting. The next steps will involve a continued staff review of the proposal, with Singleton noting that comment was premature because information was just received. Miller noted that the applicant complied in terms of submitting on time. However, Singleton noted that the project has been revised and had several changes.

The senior housing proposal, described by Miller as a "senior-enriched facility," would be located on a hill from 270 Kisco Ave. on a 17.7-acre parcel. The 129 units include 80 for assisted or enriched living, Miller said, while the other 40 would be for memory care. 

The applicant has a lease on the property, which is owned by the village, and would purchase it once approvals are granted. Other approvals needed include a site plan and a steep slopes permit.

The proposal was originally made due to a 2005 settlement between Mount Kisco and Mishkin over a lawsuit he brought in 2002 because approval was not granted for an expansion of his Town & Country senior center on Mountain Avenue. The now-defunct center was located on land that was also once owned by the Swiss Benevolent Society. In exchange for giving up the 17.7-acre site, Mount Kisco is acquiring the smaller Mountain Avenue property.

The project, from 2006-09, was subject to an environmental review from the planning board. The village board of trustees approved rezoning for the site in 2009, but project dormant until the fall of 2012 when an application was submitted to the planning board. The board then conducted more environmental review until last month, while the project underwent revisions including an access connection to the Curtis Instruments site and a flip of the building's layout.


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