You’ve got to hand it to developer Mark Stagg: He sure knows how to milk the most from city government — with the eager cooperation of Team de Blasio.
We noted last month that Stagg had pulled a bait-and-switch on a proposed apartment building in The Bronx, belatedly turning it into a homeless shelter after winning the key construction approvals from the city.
And, for all Mayor de Blasio’s supposed dedication to building “affordable housing,” his minions were too desperate to site new shelters to do anything but play along.
Turns out that wasn’t all: As Carl Campanile reported in Thursday’s Post and as Steve Cuozzo details today, the Stagg Group plans to charge the city an average of $1,028 a unit — far more than the $641 it planned to charge regular tenants, according to its January application. And, yes, Stagg still aims to collect “affordable housing” subsidies under the 421-a property-tax exemption.
Stagg’s nonprofit partner, Praxis Housing Initiatives, has netted a $5.3 million-a-year contract from the Department for Homeless Services. It will pay Stagg $2.4 million in annual rent for the 83 units, which works out to $2,400 per apartment.
Stagg told The Post, “It’s not like we’re bringing in the Brink’s truck. This is not a windfall.”
Others beg to differ. Charles Moerdler, who chairs the local community board’s land-use committee, thunders about “a handful of developers who are exploiting the city and taxpayers in a manner that is inappropriate and against the public interest.”
The latest deal nets Stagg both a 15-year property-tax break and a hefty guaranteed income stream, all without the hassle of making sure tenants pay.
DHS wants the Kingsbridge building because it’s working to get families with kids out of shelters, cluster sites and hotels. It needs units in that neighborhood to satisfy de Blasio’s directive to place homeless in their “home” areas.
And if that means cannibalizing the mayor’s affordable-housing program, alienating communities by sneaking shelters past local leaders and paying a premium to any developer who’ll do the dirty work, so be it.
The Real Deal site notes that the Stagg Group has been one of the more active Bronx developers in recent years. Expect more of his competitors to copy his tactics.
After all, it’s a recipe for success in Bill de Blasio’s New York.