$175M of Your Taxpayer Money Appropriated to Empire State Development for Galleria

 October 2, 2026                                                                                 

 Via Email: hope.knight@esd.ny.gov and esd@esd.ny.gov

Ms. Hope Knight
President, CEO and Commissioner
Empire State Development
655 3rd Ave, Fl 4
New York, NY 10017

Re:      Public Comment RE: $ 175M Appropriation for District Galleria

 Dear Ms. Knight and the Honorable Directors of ESD: 

             Citizens Advocating for White PlainS Inc. (“CAWS”) respectfully submits this public comment with respect to the $175M for District Galleria, White Plains, NY that has been appropriated to Empire State Development in this year’s State budget. [1]

About CAWS 

            CAWS is a member-driven, nonpartisan community organization with a primary goal to ensure local government serves the interests of residents rather than developers or special interests. We promote the general welfare of our community by monitoring, documenting, and publicly reporting the words, actions, and deeds of local officials. 

            Everything we do is guided by our ENACT core values:

Ø  Equity: Reform must benefit everyone, prioritizing historically excluded communities.

Ø  Nonpartisanship: Good government rules are not a party issue; we apply equal scrutiny across party lines and build coalitions, not camps.

Ø  Accountability: Power must be answerable to residents, the law, and to independent review.

Ø  Civic Participation: Democracy is not a spectator sport; we elect representatives not rulers; we remove barriers and build pathways to democratic engagement.

Ø  Transparency: Sunlight is the best disinfectant; government data and deliberations belong to the public.

Development in White Plains

            White Plains is a city of about 62,500 people.[2] Development in White Plains is proceeding at a break-neck pace. Projects under construction or in the pipeline will increase the City’s population by 10–15%. These rapid developments have big impacts that affect the vital interests of those who live in White Plains.

District Galleria

            District Galleria covers 11 acres in the heart of downtown White Plains. Four of the 11 acres are City owned parking garages (the “City Garages”).[3] District Galleria, as proposed by the developer, will have 3,200 apartments and 3,400 parking spaces.[4] District Galleria will set important precedents for future projects that are in the pipeline now. We must get this right.

District Galleria History 

An enclosed mall and the City Garages occupy the proposed development site. The mall was developed in the 1970’s under federal and state Urban Renewal programs. As with many Urban Renewal projects, the development displaced many residents and small businesses. The mall opened in 1980.

In November 2022, the developer released plans to redevelop the mall and the City Garages with seven luxury high-rise towers. The developer presented the plans to residents and local news as a fait accompli[5] notwithstanding the fact that the site was zoned for an enclosed mall with a maximum height of 90’. CAWS and the public were very confused as to how this development would occur given the zoning material constraints. 

In March 2023, the developer closed the mall and the affordable local businesses therein ending what had served as a social space for teenagers and others in the community. This felt a lot like the social injustice of Urban Renewal repeating itself.

Notwithstanding that the proposed plans included both developer owned and City owned property, there was no process of consultation or dialogue with the public before the well-formed development plans were released and discussed as a foregone conclusion. The developer received an open forum from the City which led the public to infer that the City and the developer were collaborating for quite some time behind closed doors. In a meeting CAWS had with then Mayor Roach, it was confirmed that the City and the developer had been in talks for a long while before the developer revealed its plans to the public in November 2022. 

After parading the development plans around the City as a done deal, the City then adopted an updated Comprehensive Plan that provided exactly what the developer was seeking. This seemed to be the tail wagging the dog. Of course, it is not hard to understand why the City decided to update its Comprehensive Plan. Not doing so left the developer with a discretionary site plan application subject to Article 78 challenge. Updating the Comprehensive Plan to provide for the very high-rise density that the developer presented as a pre-determined outcome led to a rezoning[6] of just the exact 11-acre site. The developer now could submit an as-of-right site plan application that was not subject to challenge or public scrutiny. It is good to be a developer in White Plains.

Special Home Rule Treatment 

With respect to the City Garages, the Common Council adopted home rule requests on June 5, 2023 and May 14, 2024. The home rule requests sought permission to sell the City Garages “without public auction or sealed bids.” Governor Hochul signed both home rule bills into law.[7] The use of the phrase “without public auction or sealed bids” disturbed many White Plains residents as it fed the narrative of special treatment and enrichment of this developer. 

Despite inquiries from residents, local public officials never explained why they deem it necessary to dispense with public auction and sealed bids. The public has concluded on its own that the developer is getting a gift or special treatment from the City. As of today, the City is somewhere in the process of transferring the exceedingly valuable four acres to the private developer – outside public purview. 

Moreover, City government has been vague about how the price for the City Garages was determined. CAWS has heard from White Plains residents that they suspect a corrupt relationship. Corrupt in the sense of the lack of an arm’s length negotiation and the lack of interest in what the public wants. The form of corruption mentioned by residents is about special treatment, e.g., (i) rezoning via an updated Comprehensive Plan for added legal protection, and (ii) ownership of City Garages without an auction or sealed bid process. 

Influence through Political Contributions 

Louis Cappelli is the primary local developer driving the District Galleria. In June 2023, the Journal News (a regional Gannett newspaper) reported that “Developer Louis Cappelli . . . with five associates contributed $100,000 to the Westchester County Democratic Committee in May [2023]” and that “Cappelli . . . said the $100,000 donation by him and his associates to the Democrats in mid-May were part of his longstanding practice of donating to both Republican and Democratic parties in the interest of supporting good government.”[8] The entirety of the Common Council in White Plains are Democratic Party members. The influential power of the donations was not lost on anyone. 

The lack of process, transparency, and arm's-length negotiation means that the ESD's stewardship of the $175M is the community's only remaining safeguard. 

Stewardship of Public Funds 

Empire State Development is responsible for overseeing the $175M of taxpayer dollars appropriated for District Galleria. It is the priority of CAWS and our membership that the public, not the developer, receive every penny of value for this extraordinary state expenditure of public funds. 

Local news has all but disappeared. The resultant environment of darkness is ripe for exploitation. CAWS and the public rely upon the excellent reputation of Empire State Development to exercise good judgment and stewardship over the public funds. CAWS’ recommendations and suggestions follow.

Taxpayer Money 

            There are two public purposes or goals that CAWS and our membership support. First is truly affordable housing. Second is genuinely public, open green space (not privately owned, publicly accessible space).             

Affordable Housing 

           The City of White Plains has a weak affordable housing ordinance; however, it does not apply to the $175M in allocated taxpayer funds. CAWS supports using the entire $175M to expand affordable housing and expects any housing funded or supported by this allocation to meet the following criteria: 

1.     - Supplement, not duplicate, what White Plains’ ordinances already require of all multi-family rental developments as to affordable housing.[9]

2.     - Be equally dispersed throughout the development, i.e., not segregated in one or two buildings.

3.     - Include a material number of 3 bedroom, 2 bathroom units to support families.

4.     - Be truly affordable units for the White Plains market, i.e., units available to households with an AMI of 30-50% in perpetuity.

5.    -  Strong preference for condominium or cooperative housing over rental.

Open Green Space 

            Open space in downtown White Plains is almost non-existent. An acceptable use of a reasonable portion of the $175M is to acquire the former Macy’s parcel along Court Street and turn it into a true public park. Land use data show that a downtown public park boosts economic vitality and increases property values, both of which drive municipal tax revenue. Downtown parks also attract additional investment and small businesses to the downtown core. Such public space provides for regular programming, cafes, and events that bring people downtown outside of standard business hours. Moreover, public green spaces reduce urban heat and manage stormwater by absorbing millions of gallons of rainwater. Most importantly to CAWS, a true downtown public park fosters social cohesion by serving as a free, inclusive gathering spot for community events, cultural festivals, and everyday living. 

            White Plains has lost tree coverage throughout this building boom. District Galleria is a critical opportunity to recover and continue the verdant character that White Plains has had since its incorporation as a city in 1916.

Thank You 

            Thank you for taking the time to read this comment letter. We appreciate all you do for New York State and all you are about to do for White Plains. We are here to work together with ESD and act as a liaison to our membership and the public. We would appreciate you putting us on your mailing list and keeping us informed of developments with respect to the allocated $175M.

 

Sincerely,

Citizens Advocating for White Plains Inc. (CAWS)
Board of Directors and Officers

 

Gary O’Brien, Director and President                                                             

Ben Brown, Director and Secretary

Yvonne Gumowitz, Director and Treasurer                                                             

Allen Weintraub, Director

 

cc:       The Honorable Kathy Hochul

            The Honorable Senator Shelly Mayor

            The Honorable Assemblymember Amy Paulin

            The Honorable Mayor and Common Council of White Plains, NY


[1] The state Capital Projects Budget for Fiscal Year 2026–2027 includes the following line item: “The sum of $175,000,000 is hereby appropriated for services and expenses for the District Galleria project in White Plains. Funds appropriated herein shall be for, but not limited to, the acquisition of real property, preparation of plans, design, construction, renovation, administration, and other costs incidental thereto (91302609) .............................. 175,000,000.”

[4] See id. pp. 1-1, 1-2

[7] Laws of 2023, ch. 471, as amended.  See New York State Senate, Bill 2023–S9291

[9] See White Plains Code of Ordinances § 9-7-3 (“Affordable housing requirements”)

Location: White Plains, NY 10601, USA

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