Economic meltdown thaws freeze on downtown uses

66 King Street, empty now for nearly three years; the owner visited town hall on Tuesday
March 6, 2009
by Christine Yeres

The six-month moratorium that put a freeze on most uses other than retail and restaurants for downtown commercial space expires March 15 and the town board appears to have has scant interest in extending it. The town board apparently sees no danger now of any of the dreaded uses, such as real estate offices or nail salons, muscling in during this worldwide economic downturn.

Banks, by local ordinance, remain unwelcome. But on that subject, in their March 3 joint meeting the town board and planning board heard from a resident property owner who splits her time between New Castle and Arizona.  Ellie Nash and her late husband moved to Chappaqua in 1967, sent two children from kindergarten through high school here, and in 1978 bought 66 King Street, most recently the site of Giona’s Italian bistro and the Chappaqua Stationery Shop, with no money down, she told the board. In fact, she had only recently made the last mortgage payment and the place was now, 30 years later, free and clear – but also empty. A pretty woman with reddish hair and a soft voice, she meekly asked the board if they might consider lifting the restriction on banks. 

She sketched her history. Chase bank signed as a tenant in July 2006, then, in November 2006, the town board passed a law banning banks from downtown first floor space, “a stunning thing for me,” she said, in her measured voice. Chase tried to kindle the town board’s interest in a bank-cum-art gallery in May 2008, but the board was unmoved. In July 2008 Chase terminated their lease. See “Chasing a first-floor use that’s out of favor, bank returns with fancy plans,” NewCastleNOW.org, May 23, 2008.

“I know I’m not the only one hurting,” Nash said, “but it’s the only [building] I own. If you have any ideas or thoughts . . .” As she trailed off,  Planning Board Member Richard Brownell turned to her and said exuberantly, “I personally have no problem with banks on first floors,” and suggested that she look for a tenant among the smaller regional banks, more likely to survive.  She had told the board that her chances of finding a tenant are very slim these days.

Various members offered explanations to Nash. Supervisor Barbara Gerrard said to her, “The board was trying to revitalize the downtown.” Board member Michael Wolfensohn told Nash that when residents were surveyed they had expressed special disaffection for banks, real estate offices and nail salons, and the town board had responded accordingly. Nash answered mildly, “Nobody appeared to tell me ‘No banks.’”

Although the regulation barring banks stands, the town board resolved to let the moratorium dissolve on March 15.

When the meeting adjourned, Susan Carpenter of the planning board and Elise Mottel of the town board spoke to Nash, who was headed back to Arizona the next day. They asked if she had ever considered adding a second floor for affordable housing, suggesting that county or state monies might be available for that purpose. Mottel offered to put her in touch with people who might have some expertise.

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