Trustees Consider Establishment of an Open Space Fund

The Land Use Committee of the Scarsdale Village Board of Trustees met on Thursday night June 3rd to consider an innovative way to save some of Scarsdale’s scant open space. In response to resident’s pleas to limit development, Mayor Carolyn Stevens is proposing that the Village put in place a plan to purchase available parcels and keeps them green.

Given even scanter resources, how could this be financed? Stevens is proposing that Scarsdale add a small percentage to the mortgage tax that newcomers pay when they purchase a home in Scarsdale. If the Village raised the mortgage tax by as little as a half of a percent, the revenue stream from the tax could be used to pay interest on loans for property acquisitions. The land purchases would be financed through the issuance of bonds.

What would the Village purchase? Stevens would initially like to target properties that often flood and are therefore not ideal for development. There are parcels that cover portions of the watercourse that could be developed into passive parks with retention basins, serving to increase our green space and alleviate flooding. In addition, the Village would consider purchasing properties that are now privately owned but have been deemed to be too wet for home construction.

There are several steps the Village would need to take to create and Open Space Fund.

• Village management would draft a referendum to create an Open Space Fund
• The Village would appoint a 5-7 member advisory board to review potential land acquisitions and to prioritize which purchases prove to be the best use of funds in preserving community character. Only properties on this list would be eligible for purchase.
• The advisory board's preservation plan would need to be adopted 60 days before a community-wide vote.
• The proposal would be voted on by the entire community in a village-wide referendum in November. The referendum would give the Village the right to change or repeal the mortgage tax by a deemed percentage. The referendum would only need to be held once and residents would vote on the tax change and the establishment of the fund.

In the future, the advisory board would have the power to add or omit properties from the purchase list and there would be a public hearing before any purchases were made.

Stevens shared information she had gathered in speaking to Village real estate brokers and members of community groups. Brokers felt that any negative impact of the tax on buyers could be mitigated by the prospect of moving to a greener community. She reported that the League of Women Voters, the Conservation Advisory Council and the Friends of the Scarsdale Parks were already excited about the idea.

Trustees discussed the pros, cons and timing at the meeting and many questions arose. Would this increase in the mortgage tax be viewed as an overall tax increase? Since it would only hit newcomers some said no, however it was pointed out that as a home seller, there would be a slight increase in the overall cost to purchase a home potentially making it more difficult to sell. Trustee Eisenman asked, why not just issue bonds to purchase desired properties? Stevens explained that the increase in the mortgage tax would create an ongoing fund that would allow the Village to purchase several parcels and make payments from the proceeds. How much could we raise from the mortgage tax increase? Village Management estimated that a .5% increase in the mortgage tax could raise $1 million dollars per year.

Due to the short time frame between now and voting day in November, the Trustees agreed to ask the Village Manager to develop a resolution to be submitted for consideration to the Trustees at their July meeting.