Due Diligence?

So much for The Paul and his Town Board doing their “due diligence”! You’ll recall in Town Board meeting after meeting The Paul continually boasting, to the point of bragging, that the Town Board was doing their due diligence in choosing a company to take over and operate the WestHelp property. For two years now, Town residents, the NAACP and others were all insisting to return it to its proper intent as affordable housing. You may recall the town is contractually required to provide low/moderate income housing at the WestHelp property.

But in a move to purchase votes and endear himself with Valhalla residents and certain county republicans, The Paul ordered the apartments to remain vacant for nearly two years. He also insisted they remain left open to facilitate their ruination, ultimately requiring demolition. This would ensure no low/moderate income residents return to the bucolic Valhalla Hamlet and allow The Paul to gift the property to the unsuspecting Ferncliff School to build a new residential school for the developmentally disabled on the property. The state rejected that proposal last month, insistent the property be used for affordable housing as intended. Another of The Paul’s latest schemes that would backfire!

Month after month, meeting after meeting many residents, and specifically the G10, would ask what the criteria was for selecting a vendor for the property. The new catch phrase from The Paul and his Board was, “Yada, yada, yada. We are doing our due diligence.” You can easily substitute a host of words/expressions for the “yada, yada, yada’s”. These substitutes could be: “blah, blah, blah”; “go away, go away, go away”; “we’re in over our heads, we’re in over our heads, we’re in over our heads”; “help us, help us, help us”. The list is endless. And yet The Paul persisted they stick to their due diligence story – and they did. Due diligence actually requires doing something. It appears they did little, if anything.

It’s been about two years or so since The Paul decided to pull the plug on the Town’s most lucrative “do-nothing” contract with the County of Westchester. The Town earned $1.2M per year in rental payments from the County for the WestHelp property. Because of The Paul’s latest scheme, the taxpayers lost this cool $1.2M per year that will a) never be recouped; and b) never be replaced with anything even close. In the meantime, after doing their due diligence, The Paul instructed his Board to choose the bid from a new partnership made up of the Richman Organization and Group MRH. They did. This partnership proposal promised to pay Greenburgh $1.5M up front and almost $500,000 annually. The payments will continue through the year 2032. They will also spend approximately $2M in renovations. The Town won’t even be making half of what it was before this debacle began and the Ferncliff School is no closer to finding a new home.

Now it’s been uncovered through other people’s due diligence that there is no partnership between the Richmond Group and Group MRH! So what due diligence was The Paul and his go-along Board engaged in? Can we expect similar due diligence from them regarding other projects in the Town, such as the Frank’s Nursery property? Or how about the spot-zoning changes recently made to accommodate the Brightview Assisted Living facility just off of Benedict Avenue at Rt 119? How much due diligence was performed here?

The Brightview spot-zoning change, another “done-deal”, happened not only for the Brightview developers, but was passed by the Board under the guise of a Town-wide change to allow Assisted Living facilities throughout the Town. Justification for this spot-zoning for one developer was evenly spread out through the entire Town’s Unincorporated districts, allowing four story buildings on postage stamp sized properties in residential neighborhoods. Due diligence? Hardly. The attorneys for Brightview wrote the spot-zoning change to benefit themselves and The Paul and his Board voted to approve it, and fast! After all, Brightview is on a schedule and might withdraw their plan if they’re delayed. They’ve repeatedly said so.

Now that the WestHelp deal is done, The Paul openly stated that the two organizations are not a partnership. And when asked if this would alter the WestHelp property deal or not, The Paul, who begrudgingly only reverses course when he is mandated to do so by court rulings, said, “Not at all. It’s not really a big deal. Richman was never going to be the financial backer. There were zero misrepresentations on the part of (MRH).” Perhaps not – technically. But after all the espoused due diligence, ABG wonders what their due diligence actually was? And now that you do know something is amiss, most normal leaders, at least in business, would take pause, review, perhaps reopen the evaluations or reopen the RFP process. In a story ABG posted called “Under The Circus’ Big Tent” on April 26th, we quoted The Paul saying, “This is not a game. This is not entertainment. This is not a circus. This is a business. We have a fiduciary responsibility to the taxpayers of Greenburgh to get the best possible deal for the Town.” This is a business? Really? Fiduciary responsibility? C’mon! Of course the representatives for MRH had no comment. They got what they wanted. Could this deal have been promised to them? You decide.

If this sounds a bit familiar to ABG readers, its because we’ve been living through this same scenario with another Unincorporated property and phantom business. The former Frank’s Nursery at 715 Dobbs Ferry Road was another “done-deal” brokered behind closed doors by The Paul and his Board with the “paper” company GameOn 365 before the Town acquired the property through foreclosure. Apparently, GameOn 365 did not have the money to purchase the property, so The Paul offered to lease it to them. A lease is simply illegal by county and state law. It wasn’t until a lawsuit was filed against The Paul and the Town that he withdrew his lease offer and offered to sell GameOn 365 the property – until House of Sports doubled the offer! That’s when The Paul and Francis “Back Pocket” Sheehan began a new mantra that they were only looking at “serious investors”. GameOn 365 had, and continues to have, no money. House of Sports is fully operational and has the financial resources to enter into the sale. Where’s The Paul’s fiduciary responsibility now? Business indeed!

The Town officials obviously did not do any due diligence and again made a deal with a questionable start-up company. Even more incredible is the arrogance of The Paul and his insistence to continue with this deal. ABG had hoped the Town’s due diligence would surprise us with a transaction that might get renovations underway immediately, help those in need of housing and follow the law. Once again, the Town leaders have failed miserably – this time with due diligence. Just as the investment company ads claim, that “Past performance is no guarantee of future results”, ABG is not confident The Paul and his complicit Board will do the right thing with the Frank’s Nursery property and provide us with different results. We can only hope.