By Stephanie Mariel Petrellese

The Mayor's Committee on St. Paul's and their consultant have narrowed the field of viable candidates from seven down to three for the restoration and redevelopment of the Main Building at St. Paul's. The remaining contenders are the Albanese Organization, Avalon Bay Communities and the Committee to Save St. Paul's/Canus Corporation, announced John Mauk, deputy mayor and chairman of the Mayor's Committee, at the April 19th Garden City Board of Trustees meeting.

Mauk would not elaborate on specifics included in the remaining proposals out of concern for possibly jeopardizing further negotiations, but did say that they all require some form of subsidy by the Village to go forward with development and, in one case, for ongoing operation thereafter. He explained that this will be either in the form of direct capital investment, rent payments in excess of fair market value, or new development in excess of the 16,000 square-foot limit stated in the RFP (which represents the replacement square footage associated with the demolition of Ellis Hall).

The eliminated candidates include John A. Ardito. Esq.; Eskar International Limited/Litas Investing Co., Inc.; NAIM/Apollon; and REIT Americas Limited.

Last June, following the recommendation of Karen Backus, the Village's consultant and principal of the real estate consulting firm K. Backus & Associates, Inc., the Village issued a Request for Proposal (RFP) to be due that October. The Village required that respondents submit proposals for development of the Historic Main Building at St. Paul's within the existing building envelope, but provide for a flexible framework to allow for developer creativity and other options.

Responders had to demonstrate that their proposal holds the most promise for achieving Village redevelopment objectives; they had to demonstrate that they have the experience and capability to assume the many risks involved, and to commence a successful project despite those risks; and it had to be clear that they understood the significant project costs, and have the ability and willingness to finance the project without burdening Village taxpayers.

Mauk reported that in her latest report to the Committee, Backus said that many of the firms initially targeted to submit a proposal declined the opportunity. She also indicated disappointment with the few responses received, and noted that only two of the responders are recognized developers with a substantial reputation and track record.

"With few exceptions," she said in her report to Mauk's committee, "the level of sophistication and development experience evidenced by the submissions is below what we believe is required for a project of this size and complexity."

This has led to extensive delay in the ability of the consultant and the Mayor's Committee to complete an analysis and make recommendations to the Board and residents. The Mayor's Committee and consultant will now enter into another round of discussion and consultation with the remaining candidates. Mauk said they will report their findings and comparisons to the Board and residents by mid-June or possibly after the summer in September.

According to Mauk's report, Backus indicated that an informal follow-up done with some of the firms that declined to participate revealed that the uncertainties they have about the process for removing the parkland designation and restrictions from the property, combined with the litigation brought against the Village, its trustees, and K. Backus & Associates, Inc., and the lack of strong, local and unified political support, add up to more risk than most developers are willing to take. Other reasons cited by developers included the small size of the building (relative to what is needed to support this development), the inherent risk of rehabilitating an historic structure, and the cooling market for upscale condominiums in the New York area.

In related news, Peter Bee, who recently took the oath of office as mayor, has stepped down from the Mayor's Committee and has been replaced by Trustee Gerard Lundquist. Besides deputy mayor John Mauk, who serves as chair, and trustees Lundquist and Thomas Lamberti, the committee is also comprised of the consultant and four residents: Bob Davis, Cosmo Veneziale, Charles Koester and Jim Kearney.