Lifetime Fitness Request Throws Uncertainty Into Chap Crossing
Contentious debate raged last week over Chappaqua Crossing developer Summit/Greenfield’s request to amend the town code that could allow Lifetime Fitness to leave after three years and sublease its space to a variety of retail merchants.
Summit Development President Felix Charney met with the New Castle Town Board last Tuesday to discuss the possibility of a sunset provision giving Lifetime Fitness the ability to leave the yet-to-be-built development at the former Reader’s Digest site after three years if its operation is not economically viable.
If alternative fitness providers cannot be found to move into the 40,000-square-foot, custom-made building Summit/Greenfield is prepared to build for Lifetime Fitness within six months after it vacates, then the required 25,000 square feet of health and fitness uses for Chappaqua Crossing would disappear.
Charney said that Lifetime Fitness will not sign the 20-year lease agreement unless it gets that provision. If the town board decides against that clause, it would not only lose Lifetime as a tenant but that could delay the start of construction for the project’s retail component, potentially placing Whole Foods in jeopardy, he said.
“I have to start construction,” Charney said. “If I don’t start construction I can’t deliver the Whole Foods store, which is obligated to be delivered by Jan. 2. I have to deliver the store by that date.”
The animated discussion occurred a week before the scheduled opening tonight (Tuesday) of the public hearing to consider making the change to the specialized Office Park Retail Overlay District that was approved for Chappaqua Crossing.
However, at least two town board members spoke out strongly against the sunset provision. Councilmembers Lisa Katz, the dissenting vote against the December 2014 rezone approval, and Hala Makowska told Charney that the town shouldn’t have to shoulder the risk of up to about 20 additional retail stores with uses that could compete with and imperil downtown Chappaqua for the sake of one tenant.
“My view is that we accepted this restriction for a reason and to lose it based on one tenant that may or may not succeed, to me, first of all, is premature because maybe they will succeed and maybe we won’t have to lift this restriction,” Katz said.
“I think there’s some fundamental concern about eliminating that 25,000-square-foot provision and letting it sunset because allowing more retail, different types of retail at Chappaqua Crossing…increases the threat to the downtown,” Makowska said.
Supervisor Robert Greenstein countered that the board has only two choices, complying with the request or do nothing. If the board opts for the latter choice Summit/Greenfield would pursue alternative fitness providers.
“You (can) keep it as it. Lifetime Fitness walks, we get a 25,000-square-foot fitness provider – it could be five fitness providers, it could be one – and we get 15,000 (square feet) traditional retail,” Greenstein said. “That’s the choice.”
Katz recommended that Charney explore other options because she heard there was interest from other gym operators.
Charney bristled at the suggestion, saying that there aren’t many credit-worthy fitness outfits that would agree to 25,000 square feet of space. He explained that he complied with Lifetime’s request for 40,000 square feet because they are a recognizable national chain that is trying out facilities smaller than they are currently accustomed to operating. Chappaqua Crossing would be one of 127 smaller Lifetime facilities built, rather than its typical 100,000-square-foot-plus locations.
“The other option that you’ve become aware of, and their breach of that confidentiality discussion, I will not deal with them anymore on any level,” Charney said to Katz. “I’m an ethical person, I’m very transparent. I’ve worked a long time to build trust with you guys and the fact that there are other tenants who are competitive to this location concerned about Lifetime arriving in this market and are trying to torpedo that deal by virtue of sending this information to voting members of this board, whose responsibility is to protect the town, is upsetting.”
Greenstein responded to his board colleagues that he thinks Lifetime could do well and that’s the reason why the Saw Mill Club in Mount Kisco, which he mentioned by name, has acted with “desperation.”
Rick Beusman, president of Saw Mill Club confirmed, however, that it was Charney who contacted him early last month to see if he was interested in Chappaqua Crossing. He issued a brief statement on the club’s behalf.
“In discussions with the developer, Saw Mill Club had expressed and continues to express a strong interest and ability in taking space for a health club for town residents there,” Beusman’s statement read. “They were recently informed that the developer was proceeding with seeking relief for Lifetime Fitness from the New Castle Town Board instead.”
The public hearing is part of the town’s board’s regular Tuesday meeting, which begins at 7:45 p.m.
Martin has more than 30 years experience covering local news in Westchester and Putnam counties, including a frequent focus on zoning and planning issues. He has been editor-in-chief of The Examiner since its inception in 2007. Read more from Martin’s editor-author bio here. Read Martin’s archived work here: https://www.theexaminernews.com/author/martin-wilbur2007/
