Trump selected to develop Davids Island

Real Estate Weekly, Oct 26, 1994 by Lois Weiss

Developer Donald J. Trump is being given 14 months to hash out an agreement with New Rochelle to develop a $600 million mixed-use project on the 77-acre Davids Island that lies off its coast in the Long Island Sound. In a six to one vote last week, the City Council Members agreed to negotiate only with Trump during that time.

"It's going to be a great job, and great for New Rochelle," said Trump.

Mayor Timothy C. Idoni said this is another step in the right direction for the small city. "We're very excited about going through the negotiations and completing the land disposition agreement," he said. "Trump is eager to get going."

It was Trump's plan for a mixed-use residential project compared to a "plain old park" or a theme park, that convinced the Council Members, said Idoni. "It's more practical and he is a much stronger developer than the other developers and that weighed in." The fact that Trump can command more money for apartments also impressed Idoni. According to the Westchester Board of Realtors, the median condominium price for Westchester County last year was only $168,000. Trump is used to getting prices well over the half million dollar mark and it is yet unclear what these individual units will fetch.

But under the resolution, New Rochelle will receive a $500,000 deposit by October 25 for the island, of which $250,000 will be non-refundable. Another $500,000 will be available to refund the city for certain soft costs it incurs in reviewing the proposal.

Once the land disposition agreement is signed, the first $500,000 would be applied to the yet-to-be determined purchase price. The island has been valued at about $10 million.

Trump's mixed-use proposal calls for one mast-like 45-story focal tower flanked by three curving white 22-story buildings that will appear from a distance as the sail on a boat.

The luxury condominium buildings would contain 2,000 units and provide parking for 3,500 cars. A 1,000-slip marina would also be constructed around the island. About 20 acres are to be set aside for a publicly accessible park and beach, while a 100,000 square-foot commercial and retail piazza is also planned. A day care center would be included as part of the island's amenities.

The island would have its own package sewer plant, common for Long Island condominium developments, and a helipad. Access would primarily take place by ferry service to the New Rochelle shore and by high-speed water taxi to Manhattan.

A lot of interest is being generated by the diplomatic community, said Scott Kasen, the Trump Organization's director of special projects, and a water taxi stop near the United Nations in Manhattan is contemplated.

"We always considered Davids Island an ideal place for the international community," noted Idoni, who worked with UNICEF officials for two years when New Rochelle nearly became the site of the relief agency's world headquarters.

Other people expected to fill Trump's residential apartments include emptynesters, said Kasen. These are people who are tired of keeping up their large homes now that their children have grown up, but want to remain in the metropolitan area. Boat owners are also ideal target residents.

The last developer designated by New Rochelle, Xanadu, was told to put in a bridge by the city manager in office at that time, said Idoni. The bridge served as the undoing of that plan, as the Secretary of State and others objected to the environmental damage that would be made on the shoreline by the bridge access.

Once the island is fully developed, New Rochelle officials expect to receive $12 million in tax revenues with another $13 million going to the school district and another $1 million in other tax spin-offs, said Idoni. The sums were calculated by the local assessor and himself, he said.

Those figures were a surprise to Council Member Christina Selin, who was the only member to vote against the proposal. She feels it could take over a decade to see that kind of money. Of Trump, Selin said "His name is attractive and this is a city where the properties are overly taxed. People are looking for relief and unfortunately, this is not going to be immediate."

Her real concerns, however, were not so much for the actual development, but because New Rochelle has not finished its own waterfront revitalization plan. "There is a draft but I haven't seen it," she said of the project that has been in the works for several years.

Additionally, Selin, who is an attorney, said they rejected two alternatives and accepted the Trump proposal without really knowing the advantages and disadvantages of each one.

"I don't see how you can do that without doing the evaluations first," she said. "We have decided on a particular concept without knowing if that will be the most beneficial for the city."

Local environmentalists are upset that the idea of a total County park was not fully investigated. Another proposal for a science center, hotel and monorail was also passed by.

"We are...coordinating an effort to keep impressing on the city that this is not a viable solution and to keep encouraging the County legislators that the park is best and not to lose heart," said Gudrun Le-Lash, executive director of Federated Conservationists of Westchester County. "We regret that this 14-month option closes out all other proposals in one fell swoop."