‘The City Must do Better for Residents when Awarding Tax Breaks to Developers’

Several months into his term on the New Rochelle Industrial Development Agency (IDA), Miguel Ayala, a member of the International Brotherhood of Electrical Workers Local 3, is making his presence felt.

New Rochelle IDA member Miguel Ayala

At the December 18 IDA meeting, Ayala raised concerns about the hiring practices of the two developers who were seeking tax breaks. After questioning the labor practices of one, 550 Fifth Avenue, he highlighted the poor record of the second, Allstate, in producing jobs for New Rochelle residents as board members consider extending their tax breaks for another year. 

Quoting the mission of the New Rochelle IDA “to provide business support through financial assistance and tax incentives to eligible projects in order to promote economic vitality and prosperity, as well as recreational opportunities for the entire New Rochelle community,” Ayala asked, “I’m looking at your [Allstate’s] reports of your hiring practices … Where is the prosperity for the New Rochelle community?”

Ayala referenced 2023 employment figures Allstate provided the City for its three projects, 8 Westchester Place, 64 Centre Avenue, and 33 Westchester Place (formerly 316 Huguenot Street). 

33 Westchester Place (formerly 316 Huguenot Street)

Allstate reported New Rochelle residents did less than 3% of the construction work done on their three projects.  The IDA and the City share a goal of having residents perform 20% of the  work done in the downtown development. 

The IDA and the City also share a goal of having new apprentices work 1,000 hours for every 20,000 hours worked on a project. Allstate reported 177,206 hours worked on their three projects in 2023 without a single apprentice being hired. To meet the IDA and City goal, there would need to be nine (9) new apprentices working on their projects. 

Recognizing the significant job opportunities generated by the redevelopment of downtown New Rochelle and increasing development around the City, in 2016, the City Council  established the Economic Opportunity and Nondiscrimination Policy to ensure that City residents and historically underrepresented communities have access to these opportunities. The policy spells out the local hire and apprenticeship goals, as well as others.

New Rochelle’s Economic Opportunity and Nondiscrimination Policy (2016)

Allstate’s representative at the December meeting, Anne Kline of DelBello Donnellan Weingarten Wise & Wiederkehr, replied to Ayala’s concerns about the lack of job opportunities for New Rochelle residents saying that Allstate’s contractors couldn’t find residents who have the “technical expertise that’s necessary” for their projects.

Ayala responded saying, “One way to fill the positions is to use union labor.” And he added, “It’s a two-way street. You can’t just have the city giving you tax benefits and you’re not really giving anything back to the local residents.”

IDA Chair Robert Balachandran told Kline, “You can see that this [local hire] is important to us…Work with your client and say, ‘Hey, this is something that’s important to them … if we can help do these things it makes life easier for everyone down the road’.” Balachandran also noted that, “Others [developers] are equally as guilty” as Allstate in their hiring practices. 

IDA Vice Chair and City Council Member for District Four, Shane Osinloye, asked, “We want to see more for our workers. … How are you going to improve your practices?”

Ayala explained to IDA members that, “There is a workforce in New Rochelle that’s not being tapped to do any of this work.  … These developers just don’t want to use them. … They can start by calling the building trades, start a conversation. … If you need more local residents working, the unions can send people from the community to work. But there’s not even a conversation with the building trades, that’s my point.”

Allstate is seeking an extension of their IDA tax break due to “unavoidable and unanticipated” circumstances that they say have  caused a nine-month construction delay at 33 Westchester Place. 

Ayala also expressed his uneasiness with granting an extension saying, “There’s always unanticipated delays and things come up. If we set a precedent, every developer is going to come up and ask for the same thing.”

By voicing his concerns regarding the failure of the downtown redevelopment to produce good, family supporting jobs and opportunities for residents to enter into apprenticeships, and more, Ayala, who was appointed by the newly-elected City Council in June 2024, has already successfully changed the conversation at the IDA Board meetings. His role highlights the importance of appointing real community representatives to the boards and commissions that make critical decisions in city governance.

Council members who are beginning their second year in office promised during their campaigns to improve employment and housing opportunities and will now have the opportunity to appoint an affordable housing advocate to the IDA when the next seat opens up at the end of February.

On Tuesday, February 4, the IDA is expected to vote on Allstate’s request for additional public support for their 33 Westchester Place project. Meanwhile, their plans for another 28-story building at 570 Main Street are on the Planning Board’s agenda for Tuesday, January 28.