June 12, 2009
Editor’s note: On Tuesday, June 9, at the town board meeting, Supervisor Barbara Gerrard offered in her Supervisor’s Report background information regarding the board’s consideration of amending the town code to allow additional retail banking establishments to occupy first floor space in downtown Chappaqua. She outlined the board’s concerns on this topic as well. We offer this copy of her remarks to keep the citizenry apprised of the board’s thinking on the subject.
SUPERVISOR’S REPORT
June 9, 2009
Later on this evening the Town Board will be continuing a public hearing on the issue of permitting “retail banking institutions” on the first floor in the commercial districts. That public hearing was opened on April 28, 2009, continued on May 26, and [is] now again before the public.
By way of background – almost 3 years ago the then Town Board – in an effort to encourage more retail businesses and restaurants to rent available space in the hamlet, prohibited “financial institutions” – which definition includes investment bank offices, insurance brokerages, and other financial institutions, from occupying the first floor. Our goal, both at that time, and still today, is [to] try to increase pedestrian traffic in our downtown and encourage local shopping. Even before the downturn in the economy, we were attempting to aid local merchants and the restrictions suggested appeared to be reasonable.
The change we are now considering does not undo that legislation, with the narrow exception of permitting retail banking – what we all commonly refer to as banks – to operate on the first floor. The change would still prohibit insurance agencies, investment advisors, as well as professional offices, from occupying the first floor.
And the reasons the Board is considering such a modification are many –
1. By far the most pressing reason is the precipitous drop in every aspect of the economy – with 9.4% unemployment and the collapse or near collapse of financial institutions such as Lehman Brothers, Citibank, Bank of America, Merrill Lynch, and Wachovia Bank – the current situation cannot possibly go unnoticed by our residents and us. In fact, of the aforementioned entities, all but Lehman’s remain as tenants in Chappaqua (Merrill now being owned by Bank of America) and at this point no one can predict where these institutions will be in the next few years. The stress tests’ results have been encouraging, but no one thinks this is over –banks will still be requiring bail out funds – and consolidation is almost assured. Will Wells Fargo keep the Wachovia branch on South Greeley Avenue? Will Citibank ultimately have to reduce its number of branches? It has a branch in Mount Kisco and in Thornwood. We’re in the middle. The Town Board does not believe anyone has answers to these questions yet.
2. The uptick in the number of vacant commercial spaces cannot be good for the merchants who are still here. We all know about the departure of long-term stores which leave a tremendous void in all of us. But its the Town Board’s responsibility to be as ahead of the trend as we can. How long can some of these spaces go vacant – with their unkempt facades, and their forlorn entries – nothing in the windows, nothing to entice walkers by to slow up and admire the wares in other merchants’ windows. And please see the front page story in yesterday’s Journal News “Vacancies have ripple effect on communities” – “empty storefronts are dotting the Lower Hudson Valley streets as the recession forces businesses to close and discourages new tenants from moving in to take their place.”
3. In response to all who have said, “I’d rather have a restaurant or a bakery” – or “I would prefer a retail store,” please know that every single member of this Board feels the exact same way that you do – which is why we passed the legislation that we did almost 3 year ago – that is everyone’s preference. But as the article says, because of the economy small businesses are less likely to open, or if they do, more likely to fail.
4. And please also remember – unlike some others who have opined on this issue – it is our obligation to the best [of] our ability to maintain the fiscal security of the Town – to the extent these owners of commercial property are unable to rent their space, and the stores remain vacant month after month and in some cases year after year, they have the opportunity to have their assessed values dropped – commercial assessments are predicated on fair rental value – so if they can’t be rented, they are of less value – that ultimately means lower taxes for the commercial sector and the fiscal impact is felt Town-wide.
A healthy downtown area, both Chappaqua and Millwood, are essential to all of us. We want every business to thrive, and we do not believe that empty stores say to anyone “We are thriving.” With that said, we will continue to listen to all comments and weigh the various considerations as seriously and thoughtfully as we can.
Editor’s note: To read how some residents feel about the restrictions on retail banking, see NewCastleNOW.org’s ”UPDATE: Public hearing Tuesday, June 9, on allowing banks to rent space in downtown Chappaqua..”
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