Firestein Letter Against Proposed Bedford storefronts size cap

8/20/2019 Firestein Letter Against Proposed Bedford storefronts size cap

1/3

P irestein :M a na gement In c

June 29, 2015

Supervisor Christopher Burdick and

Members of the Town Board

Bedford Town House

321 Bedford Road

Bedford Hills, New York 10507

Re Proposed Local Law to Amend Section

125 29 7 as

to the scale

of

development

Dear Supervisor Burdick and Members of the Town Board:

I compose this letter as a Principal in Firestein Management lnc., which owns 262-294

Katonah Avenue (Section 49.19, Block 2. Lot 19) in the Katonah hamlet within the Town

of Bedford, New York. I am significantly concerned that the well-intentioned June 12,

2015 proposal by the Katonah Village Improvement Society (KVIS) requesting that the

Town Board further reduce the size of any single. first floor use in the CB and the NB

Districts from 7500 square feet to 5000 square feet or below is premature and ill- .

conceived. particularly given that the Town Board only codified the 7500 square foot

limit 6 years ago by Local Law No. 5 of 2009 on July 14, 2009. The local real estate

market is still very fragile with numerous vacancies and high turnover.

By way of background, I have over 30 years of experience working with retail

businesses, both large and small. I personally owned and operated a small retail store

and a small restaurant. I currently own an equity interest in more than one dozen retail

properties, and have negotiated over 500 retail lease transactions as both an owner and

broker. I share my background to facilitate your weighing my comments appropriately.

Although the Town Board. KVIS and the Planning Board may see this further limiting of

the size of first floor tenancies in the CB and NB Districts as an exercise in

Placemaking, I would actually suggest that the unintended consequences associated

with this seemingly innocuous change from 7500 square feet to 5000 feet will adversely

and Significantly harm the local real estate marketplace. The potential for collateral

damage to landlords and the local tenants you seek to protect is significant.

Simply stated, small tenancies require landlords to take bigger risks at the outset and

throughout the tenant cycle. In my experience, new, local tenants seeking to lease

space are generally undercapitalized, unless they are a vanity business investment.

New businesses have a higher failure rate; and therefore, represent higher turnover for

the landlord. Often, these smaller businesses have lower credit ratings which require

landlords to incur more of the tenant improvement costs during the fit out of the tenant

space and to accept a lower rent. And, when successful, these tenants often desire to

grow their retail area and back office. The landlord has to weigh these risks in the

leasing process. A further exacerbating factor for Bedford with its location in the NYC

East of Hudson watershed is that there are effectively no new hook-ups for waste water

which particularly impairs the leasing process for food related businesses. Plus, in a


2/3

2 Tax Cap Era, landlords are finding that municipalities are forced to decrease

services notwithstanding the extremely high property taxes as a result of unfunded

mandates by the federal and state govemments. All of these factors make it difficult for

landlords to do business. successfully. Meanwhile, national and/or regional chains

frequently posses better credit ratings and can afford higher rents to offset landlord's

prior investments and current debt service. Ultimately, these better credittenants allow

landlords to take risks on other tenants, who are often the ones providing the

idiosyncratic character. In addition, we all know anecdotally and statistically that retail

requires anchor-drawing tenants that provide essential services such as restaurants,

food markets, and pharmacies. Thus, a blend is essential. The proposed local law

prevents such a blend.

Based on the genesis of the prior law and this amendment, it seems that there is a

significant aspect to these laws seeking to prohibit so-called Formula retail. Yet. I am

uncertain as to how the 9

th

DeCicco's Family Market proposed for 122-138A Bedford

Road in the Katonah hamlet and the existing Mrs. Greens located at 186-252 Katonah

Avenue on property owned by an Urstadt Biddle affiliate known as UB Katonah LLC,

which is 1 of 20 Mrs. Greens in the Natural Markets Food Group, harm the character of

Katonah. Instead, I would suggest that these tenants in many ways define the essence

of Katonah. These tenants cannot expand, extend or enlarge without risking their legal

non-conforming status if this local law is approved. Moreover. as a landlord. per Zoning

Law Section 125-110 no permit shall be issued that will result in the increase of any

dimensional non-conformity.

I also am concerned as to how this local law will hamstring the redevelopment of the

Bedford Playhouse property located at 633-647 Old Post Road in the Bedford hamlet.

which is owned by Alchemy Bedford LLC who has taken an unprecedented risk on the

newly formed Bedford Playhouse not-for-proflt.

Additionally, this local law could serve as a potential further impediment to the newly

formed Bedford Hills Live Public Forum that had its first professionally facilitated

meeting earlier this month.

The proposed local law will further exacerbate a challenging and slowly recovering local

real estate market. Ironically. this local law will create conditions contrary to risk taking

by the landlords on small and local tenants who are undercapitalized. and it could

frustrate grass-roots efforts by the newly formed Bedford Playhouse Inc and the Bedford

Hills Live Public Forum. I would welcome the opportunity to meet with any member of

the Town Board. Planning Board or Town Staff to discuss these issues further. Thank

you for your cooperation and consideration in this matter.

v~~ 7

cc: Chairwoman Courtney-Batson and Members of the Bedford Planning Board

Jeffrey Osterman. Town Planner

l£ i res te in Management

Inc

l a e e


3/3

Joel Sachs, Esq. & Eric Gordon, Esq., Town Attorneys

Christian Potter, Esq., CVS

Tracey Roll, TMC

Neil J. Alexander, Esq. & Anthony Morando, Esq., Cuddy & Feder LLP

P ir es te in Manae em e nt I nc

Documents

Firestein Letter Against Proposed Bedford storefronts size cap