Community Corner

Board Ponders Doubleday Court Developer's Request

The Engel Burman Group is asking the board to accept a bond in lieu of cash deposit for the issuance of a building permit for 301 Franklin Avenue.

Trustee Brian Daughney, village board liaison to the Building Department, told his colleagues he wasn't comfortable accepting a $405,200 bond in lieu of the cash deposit required by village code for the issuance of a building permit for 301 Franklin Avenue, the future home of a condominium complex to be known as Doubleday Court.

The 54-unit complex is slated to be built near the Garden City-Hempstead border by the Engel Burman Group as an "as right" development. The Engel Burman Group describes the condominiums as "metro-style NY living with a touch of the countryside manor ... the Upper East Side meets the charm of Garden City, with a host of exceptional amenities." Two-bed/two-bath residences with private balconies will be offered, according to the group's website, as will amenities like a 24-hour concierge.

At the May 16 village board meeting, Building superintendent Mike Filippon said the department was still awaiting payment of fee and deposit, which are "substantial" in order to review plans and issue a building permit.

"The developer has asked that we waive the sort of normal cash deposit and instead accept a bond. I have some issues with the concept," Daughney said, asking fellow trustees to discuss the request before voting on it. "If we were to do this for one project we should do this as a policy."

"We did ask for a cash deposit. Why aren't we getting a cash deposit?" Mayor John Watras asked.

Trustee Nick Episcopia asked Filippon if the board has ever accepted a substitute in the past.

"There was only one exception that I'm aware of that we accepted a different instrument other than a cash deposit in my tenure at the building department. That exception was made for Adelphi University's construction of the sports center and performing arts center," Filippon said. "They offered a letter of credit in lieu of cash deposit which the board accepted. Other than that there has never been acceptance of a bond or any other substitute."

Filippon added that the village would "essentially have unfettered access to those monies if it were to become necessary."

Trustee Dennis Donnelly said accepting the bond would set a precedent "that does not exist in the village." He suggested trustees discuss the issue with counsel before taking any action.

Mayor Watras added, "We asked for cash. That's been the norm. I'm really not in favor of changing the norm."

Kevin Walsh, counsel for the property owners, told the board that a "developer like Engel Burman, like many others, their assets are tied up in real estate."

"They have substantial ability to obtain bonding and an insurance company ensuring that they'll make good on this but they don't have necessarily the cash to do that," he told trustees. "This board does have a practice of working with a developer ... The issue is always are we protected? You have a bond and the bond is paid. The only thing that's going to interrupt that is a court action. A court action will interrupt your taking it from the reserve line item to moving it over to your operating account if you determine to do that too."

With a letter of credit, Walsh added, "A court action is the only thing that stops a lender from making good on the letter of credit to the village so there's a little different paperwork involved but the reality is the same. This municipality, like others, is protected fully with respect to having a bond. I'm just asking you to keep an open mind about it because the reality of it is what secures you not making it more difficult for applicants."

The board voted 7-0 to defer the item (trustee John DeMaro recused himself prior to the start of the discussion).

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