By Mike Caputo
The Village's Board of Trustees recently approved a moratorium on the use of space for banks and financial businesses in Cedarhurst's business district. There are currently seven banks within a three-block radius in the district, which has traditionally been a shopping hub for the Five Towns and the surrounding communities. Mayor Andrew Parise said the board felt that seven banks is enough.
"We felt that in our retail area, we have too many banks," Parise said. "It takes away from our retail area."
Earlier this summer, the annual Sidewalk Sale attracted thousands of shoppers to the district's array of businesses. One important characteristic of the district identified by Parise is its choice in high-end retail, something the village government strives to preserve. "This is what we enjoyed most: the high-end retail area that we've had," Parise said. "The more offices and banks and financial institutions that come in, the less retail shops we are going to have."
The moratorium, which will be in effect for nine months, prohibits all types of financial institutions, including savings and loans associations, federal credit unions, mortgage companies, primary and secondary lenders, check-cashing businesses and safe deposit facilities for storage of valuables. It also blocks the opening of financial and investment businesses.
"We are getting a lot of offices and banks and real estate offices and things of that sort, and we are trying to slow it down a bit with a temporary moratorium of nine months," Parise said. After nine months it may be terminated, or the Board of Trustees may extend it.
A section of Cedarhurst's Business Improvement District Web site mentions the openings of new businesses in the village. BID acts as an advisor and a liaison to businesses, while also organizing events such as the Sidewalk Sale and activities aimed at beautifying the area. BID President Steven Schneider emphasized that the BID is not exclusive to retail, and serves all commercial spaces in the area, including banks.
Schneider said his organization was not made aware of the legislation until it was enacted. "We weren't consulted, and we really don't have a position," Schneider said.
According to the resolution that created the moratorium, it is an attempt to create a balance between retail establishments and banks for the benefit of businesses, residents and visitors to the village. But it has already caused a conflict with a well-known bank that is attempting to open a branch in the business district. At the Aug. 6 village board meeting, a representative of Wachovia and a bank attorney challenged the moratorium, which is now blocking it from opening a branch on the corner of Central Avenue and Spruce Street, property once occupied by a Gap store.
The bank representatives argued that they already have a lease with the landlord, whom they identified as Robert Fisher of Nationwide Management Corp. in New York, but Parise said, "They are not in yet," adding, "It's something we are going to have to look at."
Wachovia's attorney did not return calls for comment, and Fisher could not be reached at a listed Nationwide Management Corp. phone number.
Comments about this story? Mcaputo@liherald.com or (516) 569-4000 ext. 210.
