With the upcoming sale of the waterfront property and our efforts to issue bonds for public improvement at no liability to our taxpayers, Glen Cove could be in its strongest financial position in more than a decade. Our priority continues to be ensuring our taxpayers receive the high quality services they deserve without the burden of tax increases.
I am certain that with the sale of the waterfront property we will be headed in the right financial direction. And, it’s equally important to understand that without this project and the new revenues it will bring, there will be an increase in taxes, a reduction in city services and potential layoffs.
Bond Buyer Validates Glen Cove’s Financial Solution to Fund the Waterfront Infrastructure
A recent story in the Bond Buyer, a respected and independent newspaper that covers the municipal bond market, validated the upside of Glen Cove’s financial approach.
The article highlights the financial benefits of the plan and quotes Moody’s analyst Cristin Jacoby who said, “They are expected to get things right with fund balances if everything goes well with the waterfront development. Overall the long-term boom to their economy could be huge.” Further in the article Jacoby added, “They have been moving positively toward balancing fund operations, but still have some challenges ahead. To the extent that the redevelopment project leads to new revenue and positive property values we would likely consider it to be a major credit strength.”
Correcting Misinformation about the Glen Cove Waterfront
Every day we hear and see incorrect, fabricated or exaggerated information about the waterfront project. Here are facts and the insights so our residents can draw their own conclusions.
The misinformed say: The city will incur $115 million in new debt
Fact: The bond offering to build parks and other public amenities at the waterfront will not be a city or IDA debt. The risk of repayment is exclusively the bond holders. At no time would the residents and the city have any obligation to repay it. It will also not affect our bond rating.
The misinformed say: The Garvies Point waterfront site is not fit environmentally for redevelopment
Fact: The Environmental Protection Agency, New York State Department of Environmental Control and other governmental agencies have spent $120 million on the remediation of this Super Fund site over the past 20 years. Final approval on the last parcel will be forthcoming in the next few weeks. Upon the issuance of the final approval, the property will be deemed ready for development and public use. After 20 years of remediation our creek is cleaner than ever. Our waterfront, which was once a toxic waste land, will finally be clean and ready to return to our tax roll. The city, DEC, EPA and other agencies have been diligent in their oversight and would not allow this property to be developed until it is absolutely safe for the public and future residents of the project.
The misinformed say: Construction will last for 10 years
Fact: Under previous plans, that may have been the case. However, now with the reduction in the number and heights of several of the buildings, there will be an expedited construction schedule, lasting about five to six years. Important for the bonding and other city protections, during the first two years all of the public amenities including parks, amphitheater, esplanade, dog park, playgrounds and more, totaling 28 acres of public recreational and open space, will be built first for all to enjoy.
The misinformed say: Buildings are too tall and will block the view of neighboring communities.
Fact: The building heights and plan for the redevelopment of the waterfront have been reduced from the original concept of multiple 16 story buildings with few public amenities to its current footprint, which reduced the building footprint by 23 percent and increased the public amenities and park space to 28 acres. The western parcel (closest to the harbor), which in 2011 was approved with two 12-story buildings and two four-story buildings, has been redesigned with one 11-story building with stepped back twin towers to enhance view corridors, and one five-story building to allow for the addition of three additional acres of park space.
The misinformed say: There will not be enough revenue to cover the cost of city and other public services resulting from the project.
Fact: This could not be further from the truth. The city ensured during negotiations with the redeveloper that each tax jurisdiction will receive tax and other revenue from the project after payment of the bond, which far exceeds their cost of services. This starts on the first day of the project.
It is estimated that over the next 40 years the city will receive $225 million with expenses of $51 million. The school will receive a total of $292 million with expenses of $46 million. The county will receive $96 million with expenses of $6 million and the library will receive $8 million with no additional expenses.
The misinformed say: 399 ferry trips weekly
Fact: The truth is that there would be about eight to 10 ferry trips per day during the week and fewer on the weekend.