I was asked to share this letter that was sent to iStar / Long Beach Wayfarer, LLC

I was asked to share the following letter to iStar:

Good Afternoon,

As a lifetime Long Beach resident, I want to let iStar know that you’re marketing the Wayfarer project to the City of Long Beach, and it’s residents, in a totally misguided manner. I have a background in structured commercial mortgage credit and currently work at redacted, so I’m pretty knowledgeable on commercial real estate and finance in general. Continue reading “I was asked to share this letter that was sent to iStar / Long Beach Wayfarer, LLC”

Another letter regarding the iStar / IDA Economic Impact Analysis

May 22, 2016

Nassau County Industrial Development Agency
1550 Franklin Ave., Suite 235
Mineola NY 11501

Dear Chairman Kearney and IDA Members,

Thank you for providing the “Camoin Report”, commissioned to express the economic impact of the Wayfarer project. Upon reading the report, I feel that it omitted critical data that will help decide whether or not to grant the 109 Million dollars in tax relief sought by the developer. It only showed the economic impact of two options, developed or not developed, and nothing in-between. Just because the developer forces an all-or-nothing tactic, doesn’t mean they deserve it. Continue reading “Another letter regarding the iStar / IDA Economic Impact Analysis”

I was asked to post this: Another opinion on the cost/ benefit analysis performed by Camoin

Another letter regarding the iStar/IDA/Cost Benefit Analysis. This one comes from a resident named Neal:

The cost/ benefit analysis performed by Camoin Associates for the Nassau IDA is more remarkable for what it failed to examine than for the metrics and attempt to quantify that it provided. We already knew that all the municipalities would  benefit financially and that some jobs would be created by granting the tax abatement versus the status quo of the current tax assessment on the undeveloped property. But where is scenario 3 in this analysis? What about measuring the proposal versus I Star’s presentation to our zoning board suggesting that this shovel ready, fully capitalized project simply needed a variance for height/ density in order to be financially viable? What about exploring I Star’s profitability argument against the market realities of rock bottom interest rates, the low cost basis for I Star’s acquisition of the property, and the present and projected high demand and strong market for luxury apartments in settings that enable active lifestyles and transit access to NYC? Karl Frey, I Star’s Exective VP told members of our civic associations that IStar was looking for a 5% return on their investment. When asked if IStar would split any overage with Long Beach, he wouldn’t commit.  How much would I Star need to raise its proposed rents on 528 apartments to achieve their target profit margins without applying for the $109M tax abatement ?

This report, even absent a specific recommendation, strikes me as a misdirection play that does nothing to expose the real dynamics of this issue: that I Star is trying to blackmail the City in a zero sum game in which it is either their way or nothing. It utterly misses the point by not exploring the potential of that property or the options the developer has for achieving their profit without taking out a profit insurance policy on the taxpayers dime.

I support the development of the Superblock. However, as a 31 year resident who has been looking forward to the day that real estate values reflect the amazing quality of life that we have here in Long Beach thereby allowing development to drive increasing tax revenues and some degree of tax relief for overburdened taxpayers, I ask my fellow residents to show up on Wednesday to bear witness, to let the IDA know what we know.

I was asked to share the following: Concerning iStar Tax Relief Request

May 19, 2016

Nassau County Industrial Development Agency
Theodore Roosevelt Executive & Legislative Building
1550 Franklin Ave., Suite 235
Mineola, NY 11501

Dear Chairman Kearney and IDA Members:

I write with respect to the iStar tax relief request and specifically the recently released economic impact analysis performed by Camoin Associates (the “Camoin Report”) for the Nassau IDA. In short, the Camoin Report is fatally flawed as an information source because it limits its analysis to a paradigm where there are only two options: iStar builds or iStar does not build. By limiting its analysis this way, the Report so narrows its field of vision that it is like a racehorse wearing blinders to force it down a narrow path. Continue reading “I was asked to share the following: Concerning iStar Tax Relief Request”

A reader is questioning some of the information in the ‘iStar’ Newsday ad

A few problems with iStars numbers and information, as touted in their ad this morning… [See ad here]

iStar touts economic activity will be created by new residents, but then projects 65% of these residents will come from Nassau County. Why would the county IDA provide incentive to create economic activity in one part of county by stealing said activity from another? On the county level, this “benefit” is greatly diminished.

iStar is saying they will pay $25 million more over 25 years than if nothing gets built. That is still $122,600,000 less than if they didn’t get PILOT.

With school: If the development brings in 25 kids to the school district, the cost would be minimum of $15 million. If 60% of taxes go to schools, they’re barely covering costs of students (that’s based on $24k/kid, which is low). I believe they project 28 kids.

Why hasn’t any other developer stepped in to take the superblock? [READER QUESTION]

Dear readers of Seabythecity:

Why hasn’t any other developer stepped in to take the superblock?

Who is the developer that is ready to step in and develop the superblock without the tax abatement?

Where is the lineup of competitive developers? I’m afraid the fact of their absence looms large.

You can say it has to do with Long Beach’s reputation, but like stock market investors real estate development is forward-looking and should take into account the changes from the past. Seriously a discussion of the merits if iStars presentation is in order as opposed to the catfight that will likely erupt tonight.

-A resident of Long Beach

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