Yonkers, NY — The SFC Yonkers Inc.
Project slated to be a $1.6 billion development centered about Chicken Island
was divulged last week by
Yonkers City Council Majority Leader Sandy Annabi, Yonkers City Council Minority
Leader Liam McLaughlin, and Yonkers City Councilwoman Patricia McDow to have been
scaled down by two-thirds. The supposition by all who heard the telling by the
council members of the PowerPoint presentation given by Yonkers Mayor Phil
Amicone in Executive Session at the Mayor’s Conference Room, spoke of the need
to reduce the project because the banks were not lending. In reality, credit
worthy projects are garnering financing throughout New
York State .
Credible sources have exclusively revealed to Yonkers Tribune’s acid-tongued
bloggers that the SFC Yonkers Inc. Project
is not presently considered worthy of being underwritten to its original $1.6
billion cost projection. The allegation is born upon three bonafide assertions by
people known to Yonkers Tribune who contend that Louis Cappelli is overextended
The precarious financial circumstances that have allegedly caused
the diminution of the SFC
revolve about the unsuccessful effort to make sufficient sales of luxury condominium residences at the
fourty-four glass towers known as the Ritz-Carlton, Westchester
located in White Plains, NY
The Ritz-Carlton, Westchester
Mr Cappelli’s precarious financial circumstances.
In an article first published March 30, 2009, in The Journal News, entitled “Cappelli
Official Insists Company is Committed to Yonkers,” written by Len Maniace,
he reports ‘“…that Cappelli Enterprises no longer plans to move its offices to
White Plans because "the whole company is focused’ on a $1 billion project
in Sullivan County…”
That circumstance led Ms Annabi and Mr McLaughlin to
question whether Capelli Enterprises were committed to the Yonkers
“Cappelli Executive Vice President Joseph Apicella insisted that
the company remained fully committed to the $1.6 billion Yonkers
project…” continued The Journal News article.
“Apicella said the remarks by Cappelli Vice President Bruce Berg
overemphasized the importance of the redevelopment of the Concord Hotel into a
hotel, racetrack and casino as the reason for the company not moving from its
offices in Valhalla
Continuing further, Mr Apicella, who is also SFC
Yonkers Inc. Project Manager for the partnership said, Mr Berg “was referring
to his focus, but that is not the focus of Cappelli Enterprises.”
Only days later, in an Executive Session at which Mayor Phil
Amicone gave a PowerPoint presentation of the now reduced project, worth only
one-third its original size, shocked the entire Yonkers City Council membership.
Another issue that raised suspicion among Ms Annabi and Mr
McLaughlin took place on March 18,
Yonkers Inc partners Fidelco and Cappelli had applied for a $4.2 million low
interest 108 HUD loan through the City of Yonkers
to pay companies and individual consultants long in arrears, and for other
various rationale. The 108 HUD loans were said to be personally guaranteed by
the partners Fidelco and Cappelli, both individually and respectively.
Mr Maniace wrote, “‘Annabi… said the loan application led her to
worry about the financial stability of SFC
sets off an alert. Why are they not going to their own banks? It set off a red
flag in my head,’ said Annabi, ‘who voted against the loan when the committee
met March 18.’”
Mr Maniace further noted, “McLaughlin said he was worried that
the key development sites might sit vacant for years if SFC
were not fully committed to the plan, something that has happened before in
said he was not completely reassured by Apicella's remarks.”
Mr Maniace also noted that “City Council President Chuck Lesnick
said the city was negotiating safeguards, including a series of construction
deadlines, that would prevent the land being idle for a lengthy period. Such a
plan would need to have some flexibility, however, due to the recession. Lesnick
said he hoped the contract for the land sale and the infrastructure financing
plan could be completed by the end of April….”
The Ritz-Carlton, Westchester
allegedly burning a deep financial hole in Mr Cappelli’s ability to raise the
necessary funds from his repertoire of banking resources. He is allegedly
financially spent. His often times business partner Donald Trump is also
allegedly in arrears on some of his projects.
Mr Cappelli has begun developing in the Catskills with New
taxpayer funds allegedly hoping to survive long enough for his fortunes to
recover before he runs out of seed money. He is not now allegedly moving his Valhalla
base of operations to the Ritz-Carlton, Westchester
allegedly concerned that he may lose that property to a seriously contemplated
forced bankruptcy filing.
The situation allegedly outlined herein demands proof be
divulged to the public at large.
It is up to Yonkers Mayor Phil Amicone, with additional due
diligence and scrutiny by the Yonkers City Council, to ascertain the credit
worthiness of the partners engaged in the SFC
Yonkers Inc. Project for proof of financing in entirety being in place.