Share
It takes more than blueprints and buildings to bring progress to a community.
In the vibrant landscape of Westchester County, N.Y.—an area north of New York City with a population of more than 1 million—few names resonate as profoundly in commercial real estate circles as Eon Nichols, a partner with the law firm Cuddy & Feder LLP in White Plains. As a leading authority in industrial development and real estate financing, Nichols, an immigrant from Guyana, has played a pivotal role in transforming the region through innovative development strategies and a deep understanding of economic incentives.
I reached out to Nichols recently for insights on how incentives can make the seemingly impossible possible.
Vital Funding
One of the key tools in Nichols’ arsenal is the Westchester Industrial Development Agency. Initially established to support postwar industrial projects, the IDA now plays a pivotal role in regional economic development. Its primary appeal lies in offering bond financing at low interest rates, a strategy that has evolved since the 1950s when it supported industrial giants like General Motors to build plants and infrastructure.
The IDA offers benefits such as sales tax exemptions on new construction, expansion or renovation projects; mortgage recording tax exemptions on the purchase of real estate; and payment-in-lieu-of-taxes programs. Countering perceptions of corporate welfare, Nichols notes the economic advantage of IDAs: Developed properties boost tax bases, create jobs and stimulate economic growth, underscoring their importance in regional development.
The state of New York established IDAs in 1969 as public benefit corporations. Perceived by some as a relic of the post–World War II era, IDAs remain a critical tool for modern economic development. “Despite its name, the IDA isn’t limited to industrial projects,” Nichols says. “It is a powerful mechanism for financing major developments, whether it’s industrial facilities, multifamily residential buildings or large-scale commercial spaces.”
States across the country have similar mechanisms. “Michigan, for instance, has the Michigan Economic Development Corp., which offers tax incentives to attract industries like movie studios. It’s a national strategy to drive local economic growth,” Nichols says.
The financial tools available through these organizations are vital for developers, particularly in high-tax states like New York. “In Westchester County, the sales tax is 8.375%,” Nichols says. “For a $100 million project, that’s a substantial amount. By going through the IDA, developers can get this sales tax exempted, easing the fi nancial burden.” Additionally, the IDA’s exemptions from New York’s mortgage tax, which can reach 2.8% in New York City and 1.3% in Westchester, are crucial.
Notable Projects
Th e strategic use of economic development incentives can make large-scale developments financially viable. Th e incentives not only attract developers but also reassure lenders and investors, reducing initial tax burdens through PILOTs and abatements, thereby enhancing investment appeal, and facilitating financing.
One ambitious project is the current redevelopment of United Hospital in the village of Port Chester in southeast Westchester. The site is set to be transformed into a $650 million mixed-use development featuring residential units, a hotel, a senior facility, retail spaces and more. It will be a game changer for the village, breathing new life into a site that has been dormant for over a decade. The project’s approval in a challenging economic climate underscores Nichols’ ability to secure essential support from local authorities and financial institutions.
The conversion of a former YMCA building in White Plains, which previously generated no tax revenue due to the YMCA’s nonprofit status, has also added value to the local economy. Th e $107 million mixed-use development, which broke ground in 2022, was facilitated by tax incentives and construction loan financing. Nichols—along with Cuddy & Feder partner William S. Null, a land-use expert—served as a strategic partner to Southern Land Company.
Another transformative project was The Mitchell, a $223 million mixed-use facility that includes 434 rental units. The developer, Quarterra (formerly LMC), worked with Nichols to secure land-use and zoning approvals, along with IDA financing. The development is transforming central White Plains into a vibrant live-work-play community, attracting both young professionals and empty nesters and, in turn, supporting local businesses.
Among the many other recent developments that benefi ted from IDA involvement are White Plains Hospital’s 250,000-square-foot Center for Advanced Medicine and Surgery, an $89 million multifamily development, a $48 million mixed-use development, and a $275 million conversion of a parking structure into a 500-unit 25-story apartment building.
The benefits of these incentives extend far and wide, Nichols says. “It’s not just about saving money for the developers. The real value lies in the economic development it spurs,” he says. “When a vacant piece of land is transformed into a $50 million facility, it increases the tax base and creates construction jobs—and, eventually, permanent jobs. This, in turn, stimulates the local economy as workers spend money in the community.” Local business owners, he says, have expressed their excitement to him about the increased foot traffic and economic activity that IDA-supported development brings.
With a commitment to education and community, Nichols helps developers harness the cutting-edge resources available in Westchester County in order to take visionary concepts from blueprints to groundbreaking, economy-boosting realities.
