UPDATE: Public hearing Tuesday, June 9, on allowing banks to rent space in downtown Chappaqua

Ellie Nash, owner of 66 King Street; inside, read residents’ reaction to proposal
Update: Monday, June 8, 2009
by Christine Yeres

Last week’s New Castle town board work session was a joint session with the New Castle Planning Board. Supervisor Barbara Gerrard asked the planning board whether they would have any objection to allowing Chase Bank to rent the first floor space at 66 King Street, formerly occupied by Giona’s and The Chappaqua Stationary Store.

The planning board voiced no objection, and Supervisor Gerrard set a public hearing for Tuesday, June 9, at 8:45 p.m. at town hall. Residents are welcome to attend to offer their opinions about making an exception for retail banking from the general prohibition against banks occupying first floor space in downtown Chappaqua.

Public reaction to proposal

On Saturday, June 6, during the Strawberry Festival at St. Mary the Virgin, residents attending the festival reacted to the proposal to allow Chase to put a retail branch in the space formerly occupied by Giona’s and The Chappaqua Stationary Store. [A history of the board’s zoning prohibition against banks and the story of 66 King Street, follows their comments, below.]

“A bank is better than nothing there, but I’d rather see something other than a bank.”

“I’d like to see something that kids can go to after school, that makes the downtown feel like a community, the way you feel here at the strawberry festival. A bakery, an ice cream shop.”

“I’d rather see a bank than fast food.”

“No, no banks. The town needs to find a more diverse merchant base, more than real estate offices, banks, nail salons and jewelry stores.”

“If I put myself in the landlord’s shoes, I feel bad for her. On the other hand, I don’t want a bunch of real estate offices and banks. Could the town board limit the term of lease on the bank?”

“Maybe if Chase let one of the other banks go? There’s more foot traffic here, downtown.” 

“No banks. Chase already has one in Millwood and one in Chappaqua, up at D’Agostino’s.  And I commute, so I can go to Chase banks all over the City anyway.  Why do I need another one here?”

“The board should stand firm. This economic crisis will pass, but if we let a bank in now, when the crisis has ended and businesses come back, the Chase spot will be taken for who knows now long – 50 years?  The board has a responsibility to think ahead.”

“Well, I would need to know whether the landlord has had other rental offers. If he couldn’t find anyone else, if it’s the landlord’s only gig, then maybe.  But if it’s just that ‘Hey, you can only pay 75% of what the bank will pay me. I’ll give it to the bank,’ then no.”

“I don’t feel competent to judge which offer the landlord should accept, and I certainly would not presume to force the landlord to accept an offer that is less than Chase might be offering.”

“Chase’s plan was pretty elaborate, if I remember correctly. I wonder if they’re in a position now to have such an elaborate plan, or even pay the rent they agreed to three years ago. I bet things are different for them, too.”

“I cannot stand another bank or real estate office!”

“I could go either way. An empty store is worse.  It’s bad for the merchants, bad for town morale.  A bank really encourages business.  When I go to Chase in Millwood, I also shop at the A&P or Dodd’s or the Drug Mart. Same thing in Chappaqua, I go to the other shops in D’Agostino’s center.  If there were a Chase bank downtown, I’d go to the bank and stop at shops there.”

“Chase?  Another location?  Not necessary. The one at D’Agostino’s is great and has great parking.”

“Parking will be terrible at a downtown location.”

“The town board can tell a landlord who to rent to?  I don’t think the board should be in that kind of business.”

“Haven’t we lost some banks downtown?  Adding Chase wouldn’t be a net increase in banking establishments now. It could be seen as a replacement bank, so no big deal.”

“Boards have the authority to decide whether something’s in the town’s long-term interest. If we wait for there to be so many banks that they then become fewer, that might not be good for us in the near term, which is, for me, living here now!”

“Landlords have to lower their rents. If they realize they can’t rent at these prices, then rents will come down, as they should. The rents are exorbitant around here. Let the stores sit empty until they realize that. The book store just left Chappaqua because the landlord wanted more rent – at a time like this!  Before he let the bookstore go, did he think how long it might stay empty?  The bookstore was paying close to $5,000 a month, rent he’s not getting at all now.”

“Well, a bank would be better than nothing, but I’d much rather have something like a restaurant.  A Turkish restaurant!”

“Chase, Wells Fargo, TD, are in pretty good shape.  Bank of America and Citibank are on shakier ground.  I am opposed to legislating against free enterprise. And a bank is more stable than a restaurant.”

“The town had the right idea about getting the kinds of businesses people want. They should wait it out. If the landlord can’t rent to a bank, he’ll have to find another tenant, and maybe it’ll be one that’s great for downtown. If a bank is sitting there, there won’t be that chance.”

“Telling a property owner that her use of the property is now restricted should only come after there’s been an on-the-record showing of community need in the absence of practical alternatives. Otherwise, no property owner can feel safe from this back-door form of eminent domain.” 

“Government starts to approach a very slippery slope when it starts to legislate against commerce. If a retailer has the wherewithal to afford what the landlord wants to charge for the property, then the government shouldn’t say no.”

“Given the current state of the economy, whoever can afford it should have the right to rent the space. Why so negative against banks?  Who will be out of favor with the town board next?”

History of zoning prohibitions against banks

In September 2006, Chase Bank signed a lease for the space at 66 King Street, formerly occupied by Giona’s and the Chappaqua Stationery Store, and began to pay rent to Ellie Nash, the owner of the property. According to a Chase representative, the right of Chase to move into the space was contingent upon Chase obtaining approval from New Castle’s planning board. It would have been Chase’s third retail location in New Castle; they have one in the D’Agostino plaza and another in the Millwood Shopping Center. 

In November 2006, a few days before Chase was due to appear before the planning board, the town board passed a law changing the town code to prohibit financial institutions in ground level properties in the downtown area. The town board was acting on its belief that an increase in retail uses, such as restaurants and shops, was key to the revitalization of downtown Chappaqua.

Chase continued to pay rent to Nash while seeking approval from the town. On May 6, 2008, hoping to change the town board’s mind, Chase representatives appeared before the board to pitch a substantial revamping of the space including windows that would be lit at night to illuminate artwork from Chase’s corporate collection. See “Chasing a first-floor use that’s out of favor, bank returns with fancy plans,” NewCastleNOW.org, May 23, 2008. 

When the town board told Chase that banking hours would not contribute to the board’s goal of increasing evening activity in the downtown, Chase expressed a willingness to consider extended hours. The board remained unmoved by the Chase proposal. In fact, in September 2008, the board declared a six-month moratorium during which only businesses that were clearly retail, such as restaurants and shops, would be allowed to move into first floor space. See “Merchants disagree, but town board freezes first floor uses for six months,” NewCastleNOW.org, September 12, 2008.

The board planned to study for the next six months, with the help of its consultants, F.P. Clark, the various uses of downtown property that would enhance revitalization. Chase paid rent to Nash until July 2008 for space it was never permitted to occupy. 

On March 3, 2009, Nash attended a town board work session with the planning board and reported that she had had very few prospective renters. She told them that she had only just now, after 30 years, made the last payment on the property, and that her carrying costs – taxes plus insurance – were around $2700 a month, without including the cost of needed repairs.  She asked the board if they had any thoughts or advice. 

Planning board member Richard Brownell told Nash that he had no problem with banks in first floor space; other board members were non-committal. Some explained the downtown revitalization rationale. Nash asked the town board to reconsider the restriction against banks.  The board acknowledged her request but made no formal response.

During the six month moratorium, empty storefronts multiplied in downtown Chappaqua and housing values fell. In work sessions town board members began to question the usefulness of pursuing the moratorium. When the six months were up on March 15, 2009, the board let it quietly expire.  See “Economic meltdown thaws freeze on downtown uses,” NewCastleNOW.org, March 6, 2009.

On March 26, in a League of Women Voters “roundtable” talk with residents, Supervisor Barbara Gerrard gave a somber report of the state of the town’s finances. In work sessions in April board members discussed whether retail banks might be considered retail operations that indeed draw foot traffic, albeit mainly in the daytime.

About a month ago, Nash said, Supervisor Barbara Gerrard contacted her to ask whether Chase was still interested. She told Nash that the board was reconsidering its position. Nash and Christopher Cesca, a Chase vice president and market director of real estate, attended the town board’s work session last Tuesday, another joint meeting with the planning board. Gerrard asked the planning board whether it had any objections to changing the code to allow retail banking as a first floor use. The planning board responded that they had no objections. 

Gerrard scheduled a public hearing on the matter for tomorrow night, Tuesday, June 9. The town board’s meeting begins at 8:45 p.m. in the assembly room at town hall; the public hearing will follow Gerrard’s announcements, her supervisor’s report and Jerry Faiella’s town administrator’s report. 

To contact the town board members, email:

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66 King Street in downtown Chappaqua

Nash and Christopher Cesca, Chase Market Director of Real Estate at the town board’s work session Tuesday, June 2

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