New Rochelle IDA approves mortgage-recording-tax exemption for NA West LLC project, 4–1

The New Rochelle Industrial Development Agency on March 28 approved a mortgage-recording-tax exemption for NA West LLC related to financing at 600 North Avenue.

The exemption request covers $128,655, described in staff materials as "1% of the difference between the $26,000,000 new financing and the original financing." The board voted 4 in favor and 1 opposed.

Why it matters: The mortgage-recording-tax (MRT) exemption reduces transaction costs tied to permanent financing and is one of the IDA’s economic tools. Board members and the public framed the decision against broader city priorities, including local hiring and union participation on large developments.

Adam Salgado, commissioner of development and IDA executive director, summarized the request and the exemption amount and said the applicant, Bob Young, was present to answer questions. Bob Young thanked the board and described higher-than-expected costs, extended lease-up and moves from construction to bridge financing as reasons the mortgage amount rose since the project began in 2017. Young said the project has yielded new retail tenants and employment in the building as it stabilizes.

A speaker identifying themselves as a union electrician raised concerns about hiring on the project during the public discussion, citing the developer’s annual compliance reports. The commenter said, “Out of 85 employees, 6 are New Rochelle residents,” and pointed to similarly low local-hire counts in 2022. The board and staff acknowledged those figures and described ongoing efforts to improve local participation.

IDA staff and board members noted that some requirements have changed since the project’s original approvals. Staff said the board has amended its Uniform Tax Exemption Policy (UTEP) so that future PILOTs longer than 10 years must join a social equity program, pay a $2-per-net-square-foot social equity fee under a 20-year PILOT, and meet a 15% target for local, minority-owned or union participation in total project costs. Those requirements do not apply retroactively to projects approved before the change, staff said.

Board members asked the developer to engage more with local unions and workforce programs. The developer said some building staff now live in New Rochelle and that the project has hired local retail and concierge employees since occupancy—but also said it can do more to collaborate with trades on future projects.

The board’s counsel and staff reported that the IDA has granted similar MRT exemptions on at least two prior occasions under comparable fact patterns. The motion to grant the exemption carried by a 4–1 vote.

The board did not adopt additional conditions tying this exemption to hiring quotas; board discussion emphasized “best efforts” and new policy requirements for future applications.