White Plains CitizeNetReporter - JPI Will Post Bond to Back Restoration Plan Contingency. "We're Gonna Build It."

WPCNR MILKMAN'S MATINEE EDITION. By John F. Bailey. January 10, 2003: A spokesman for JPI of Dallas, Texas, designated developers of The Jefferson, the apartment complex approved for 300 Mamaroneck Avenue moved quickly today to assure the city the national developer and manager of some 8,000 units nationwide, has every intention of building The Jefferson and the project is not in jeopardy of becoming another "Hole in the Ground."

THE JEFFERSON WILL RISE, as soon as financing can be restructured, according to JPI spokesman, Geoffrey Thompson. The design the project to rise on the gentle upslope of 300 Mamaroneck Avenue has been on hold for 10 months, while the project has been reestimated.
Photo by WPCNR News

Geoffrey Thompson, spokesperson for JPI, contacted WPCNR Thursday afternoon and stated strongly that JPI is definitely not "shopping" the property. "They have every intention of building the 280-unit complex with townhouses opposite the Food Emporium," Thompson said.

Will Come in With Restoration Plan. Will Post Performance Bond with city if requested.

Thompson told WPCNR the company told him late Thursday evening that the company has not told the city they will drop the project if required to put up a performance bond. Thompson reports that JPI is putting together a Landscape Plan or "Restoration Plan" as Thompson described it for presentation to the Common Council Tuesday January 21 when it requests approximately 90 day extention to their site plan approval. "They will also gladly post a performance bond to guarantee they will not leave the project as is, but they say that won't be necessary, they fully intend to build the project," Thompson clarified.

Costs being trimed. Financial Adjustments with Backers Being Tinkered.

Thompson explained that costs with the company's previous contractor for the project, based in Rhode Island, during escavation were determined by the contractor to be way above their estimate of $80 Million, but "not double," according to Thompson. That previous contractor stopped work to renegotiate the project with JPI. They reached an impasse.

JPI then brought in HRH Corporation, the company building the City Center and Bank Street Commons as a consultant to recost the job, adjust some of the design, and see how to bring the project back into cost range.

Thompson said they have since hired on HRH Corporation as their general contractor, trimmed costs but not quite enough in their opinion. WPCNR has learned that the project is still going to cost approximately 20% more, or $20 Million more than original budget.

Now, Thompson says JPI is renegotiating with the financial backers of the project to repackage the deal.

Thompson strongly delivered JPI's message to White Plains that the company is not going under. They are not in financial trouble. They fully intend to build the project, and will cooperate with the city to put together a Restoration Plan.

City Has Not Set a Performance Bond Amount.

Paul Wood, city Director of Economic Development, said the city has not set an amount for the performance bond, and said no conclusions should be drawn until JPI has had a chance to meet with the Common Council. The site plan approval expires January 31, according to Mr. Wood.


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