Glen Cove residents split over redevelopment

The overflow crowd at a hearing on Glen Cove's ambitious waterfront redevelopment split neatly.

There were those who see the $1-billion project -- with 860 housing units, a hotel, offices, 25,000 square feet of retail space and 19 acres of open space -- as long-coming progress for a blighted old industrial site.

Then there were those who view its rental ratio as too high, its scope too large and its projected tax impact overstated.

More than 100 people packed City Hall Tuesday night for the 31/2-hour planning board hearing on the final environmental impact statement for RXR-Glen Isle Partners' application.

Since a 2009 draft environmental impact statement, developers have scaled back building heights and made rentals 65 percent of residences, up from an initial 21 percent.

Rentals, said a planning board consultant, are what banks will finance today. By starting a 10-year build-out with a rental phase, RXR-Glen Isle Partners expects a "critical mass" that can stimulate spending and generate demand for later phases of luxury condos.

"The project has momentum," said James Lima of HR&A Advisors. "But it's still facing the challenge of this economy."

Roughly 40 speakers followed -- split almost evenly in sentiment. Supporters, bolstered by smart-growth advocates, lauded the options for young professionals unable to buy homes. The opposition, many of them city Republicans, doubted Glen Isle could bring an estimated 6,000 jobs and $17 million in tax revenue.

"We are not against development. We have problems with this particular development," said Republican Club president Kathleen Lappano.

Charlie Bozzello, another active Republican, said Glen Cove needs more long-term, job-creating commercial sites.

"This is an attempt to justify a project that has no economic justification," he said of the housing shift. "Rentals are out of character with the historic nature of the community."

But some residents decried the "stigmatization" of renters. They said speculation over payments in lieu of taxes that RXR-Glen Isle Partners might negotiate missed a larger point: The city now gets no revenue from the former Superfund sites along Glen Cove Creek.

"This project represents the best compromise available," said resident Michael Stanco.

Critics still wondered whether the project would provide enough ridership for the city's under-construction ferry terminal. Developers previously estimated luxury condo owners would best support the service.

Mario Capobianco, a former city councilman, believes even renters -- who developers see making at least $75,000 a year -- would support the ferry. "This is progress," he said of the project.The planning board reserved its vote on Glen Isle's special-use permit, which would allow the builders to apply to begin the first phase, which would be mostly rentals.