USH Newsletter 9/17/25
Unite Sleepy Hollow: Our Support and Plan for the LDC
The Unite Sleepy Hollow candidates are dedicated to the economic development of the village and fully support the Local Development Corporation (LDC) and its crucial role in that process. Unfortunately, the current administration, led by Mayor Rutyna and Trustee Jared Rodriguez (running for reelection), has abandoned years of work and public participation related to the East Parcel.
What is the Local Development Corporation?
Local Development Corporations are entities created by the New York State Legislature to foster economic development and job creation. They allow municipalities to pursue these goals without the typical constraints placed on local governments, which can add 30-40% to project costs. While they are "components" of the municipality, they are legally required to operate independently.
The Sleepy Hollow LDC was established in September 2014 through a unanimous resolution by the then-Board of Trustees. The LDC was created as part of the final settlement of lawsuits with General Motors, which removed the last barriers to the billion-dollar Edge on Hudson project. The East Parcel was subsequently transferred from GM to the LDC, which provided a buffer for the Village from potential environmental liabilities.
The Initial East Parcel Plan
The Village Board directed the LDC to develop a concept plan for the East Parcel, which would include a new home for the Department of Public Works (DPW) and a new park, the Sleepy Hollow Common. After extensive environmental reviews, public meetings, and analysis of costs and revenues, a final plan was presented to the Board of Trustees in 2017. The plan, which included recreational space, a relocated DPW, and new roadways, was authorized by the Board of Trustees to begin Phase 1. A key part of the plan was the purchase and development of the former UAW building and the inclusion of a bridge over the Metro North tracks to the Edge on Hudson site to improve a dangerous single point of entry and exit.
The Facts on Financing
The LDC is responsible for issuing and repaying bonds for projects. While the bonds are not directly backed by the Village's taxing authority, taxpayers are ultimately responsible if the LDC is liquidated. The Village entered into a lease agreement with the LDC for the property, and this lease is the basis for bond approval.
Bond History: The LDC's initial $10 million financing in 2018 at a 4.50% interest rate was refinanced in 2020 as part of a larger $35 million bond at a 3.00% interest rate.
Current Debt: The LDC's only debt obligation is the outstanding principal of $32.5 million as of July 15, 2025.
Revenue Strategy: The bond structure and lease were carefully timed to coincide with a dramatic increase in revenues from the Edge Development and specific "developer contribution" payments. The Village is expecting a $4.6 million developer contribution payment later this year.
Despite this, Mayor Rutyna asserted that financing costs were "egregious," raising fears of too much debt. He and his supporters stopped the project, and in the following two years, taxes were raised by 23%. They claimed the Village's "fund balance" was dangerously low, a claim that a subsequent audit and USH estimates should reveal to be "dramatically mistaken".
What the LDC Has Accomplished and Future Plans
The LDC has a history of successful projects and activities that benefit the village. The delays created by the current administration has jeopardized the completion of Phase 2, and are likely to dramatically increase the costs of completing Phase 3 (which includes a new expansive park and new DPW). In addition, significant lobbying and grant writing efforts were abandoned.
Phase 1 of the SH Common (Completed)
Demolition of the Viaduct from Beekman Avenue to the East Parcel
Removal of existing pavement
Installation of drainage and a wall
Placement of clean fill
Phase 2 (Currently in Progress)
Roadway and site grading design
Installation of drainage and sewage pipes
Reconstruction of the stormwater corridor
Construction of the Clinton Street and Continental Street extensions
Installation of watermains, curbs, and other features
Construction of a new athletic field, skatepark, and tennis and pickleball courts
Other LDC Accomplishments
Oversight and completion of all environmental impact findings
Sale of three railroad tracks to Metro North for $1.5 million
Marketing the sale of 193 Beekman Ave., which is expected to sell for over $2 million
Misuse of LDC Funds?
In a closed-door executive session in early 2024, the mayor and his coalition of trustees approved the LDC's purchase of 64-68 Beekman Ave. for $875,000. This purchase was made without public comment, auction, or vote, and the funds came from the $35 million bond sale, which the USH team believes is "wholly inappropriate". In fact, the independent LDC lawyer formally argued against it.
The plan for the property is a temporary 21-space parking lot, but the village still needs to negotiate or purchase an adjacent driveway for access. Essentially, taxpayer money was used to buy an inaccessible parking lot.
The Unite Sleepy Hollow team is committed to a comprehensive development strategy to increase village parking, but the first step is ensuring cars can actually enter the lot.
Conclusion
The LDC serves a valuable purpose by saving taxpayers millions of dollars when used and governed appropriately. The Unite Sleepy Hollow team looks forward to partnering with the LDC to finish the Sleepy Hollow Common, including the new park and DPW, and to ensure the prudent development of the village's downtown. The extensive planning for the Edge on Hudson development proves the need for a new DPW, and with the USH team's leadership, Sleepy Hollow has the financial capacity and drive to move these projects forward.