East Parcel of former GM Site Goes to Local Development Corp As New LDC Members are Named

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July 2, 2015

| By Robert Kimmel |

Financial advantages accrue to Sleepy Hollow by having a Local Development Corporation, (LDC), maintain ownership of the east parcel of the former GM site which was turned over to the Village in the deal that opened the way for development of the larger residential and commercial use riverfront parcels.

The LDC avoids some of the restrictions imposed on municipalities by New York State. By hiring just one overall contractor, rather than a variety of contractors, to work on the construction of a Department of Public Works building and other facilities on the east section, the Sleepy Hollow LDC could save up to 20% of the costs, according to Village estimates. The State mandates that Villages hire separate contractors for various jobs for construction projects.

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With the LDC arrangement, plans call for the Village to ultimately gain ownership of the parcel. Bonds issued by the LDC to finance construction and maintenance of the structures on the east parcel would be paid off by the LDC through the income gained by its leasing the facilities to the Village. Deeds to the land would be turned back to the Village at a future date.

The LDC membership is composed mostly of local residents with special expertise, following Mayor Ken Wray’s removal of five village trustees from its board. The Mayor disclosed last month that he had removed the trustees because its operation would have been “compromised,” presumably because of their lack of skills needed for its functions. Mayor Wray, who remains an “ex-officio” member of the board, stated that the trustees “did not have the needed expertise.”

Wray named five new members: David Schroedel, a former Sleepy Hollow Village Trustee; Anthony Scarpati, a CPA; Hamisher Bell, a local businessman; Michael Dawley, who has a senior position at Goldman Sachs, and Teresa Oeste-Villavieja, who, the Mayor said, “works for a firm in the city that does a lot of work in major construction contracts.”

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