Many North Shore residents found RXR’s complete reversal of their years-old promise to finance all of the amenities promised at Garvies Point rather appalling. I know I did. Worse, yet, was how rushed the new $100 million in debt G;len Cove residents were forced to take on to allow the project to move forward.
Most Nassau County Legislators voted ‘yes’ on the bond under political pressure – not really understanding what this bond was or what is at stake for New York State’s “most fiscally stressed city” [NYS Comptroller diNapoli]. In fact, the Nassau LEG – including current County Executive Laura Curran – was quite derelict in their responsibilities with such a quick, blind ‘yes’ vote.
It’s interesting to note: after voting yes, Ms. Curran then went on to select two RXR executives to serve on her “transition team,” which makes one wonder just who she is working for.
But anyway, want an example of how rushed this financing was? When the City of Glen Cove held a quick public hearing on this enormous bond, the development’s lead counsel, Michael Zarin, wasn’t even able to adequately answer the question: “who is responsible in the event of default on this bond?” wow. (Read more on this here)
So unlike Glen Cove, former GC Mayor Spinello or the entire Nassau County Legislature, we took the bond to our own outside expert for an opinion. Here is what she had to say:
Now I don’t know much bout real estate development bonds, but it doesn’t take a financial wizard to see that this $100 million now on the backs of Glen Cove residents – was rushed through with little transparency and barely any meaningful deliberation. County Executive Curran will be held accountable if this doesn’t pan out (trust us), but what about condo buyers?? Are you willing to take so much risk and purchase a condo at Gravies Point?