MBIA AND ENVIRONMENTAL GROUPS REACH ACCORD ON
CONTROVERSIAL CORPORATE DEVELOPMENT PROJECT

FOR IMMEDIATE RELEASE;
Monday, November 10, 2003

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A coalition of New York environmental groups and MBIA, the nation’s largest municipal debt insurance corporation, have reached an agreement on MBIA’s controversial proposal for expanding its corporate headquarters in the town of North Castle, in the immediate vicinity of the Kensico Reservoir.

The Kensico Reservoir, the strategic chokepoint for the downstate water system, supplies unfiltered drinking water to 9 million New Yorkers, including 75% of Westchester County households. Environmental groups feared that construction and new paved surfaces from MBIA’s corporate office expansion would have destroyed critical watershed greenery and funneled additional pollution and stormwater runoff into the nearby reservoir.

The agreement, which was made public by the parties today, outlines significant modifications to MBIA’s originally proposed headquarters expansion project – modifications that both sides agree are designed to “raise commercial development standards” for building in environmentally sensitive watershed areas.

Among key modifications to MBIA’s building plan are the following:

· rather than adding more paved surfaces to the MBIA corporate properties, changes in design will yield an actual reduction in impervious surfaces on the project site – resulting in at least 11,700 square feet of additional pollution-absorbing green space, compared to existing conditions at the site;

· an Integrated Pest Management Plan, designed to keep pesticide and fertilizer use to an absolute minimum and to use only low-phosphorous products, will be adopted and implemented, for the entire 36 acre site;

· all stormwater run-off from the new development will be treated on site in a state-of-the-art stormwater detention basin;

· a new program for winter de-icing of paved surfaces will not utilize sand, will use low-phosphorous products, and will keep salt use to an absolute minimum; and

· to safeguard critical buffer lands closest to the reservoir, MBIA will create conservation easements that will protect 7 acres of forests and meadows on its property from development, with such easements to last in perpetuity, upon completion of the headquarters expansion.

“MBIA’s willingness to work collaboratively with the environmental community, to make responsive design changes in its development plans, and to commit to taking additional protective measures in future maintenance practices shows that the business community can be responsible stewards of natural resources – environmental foresight does not hurt the bottom line” said Leila Goldmark, an attorney for Riverkeeper.

“This unusual agreement enables MBIA to meet its corporate objectives while at the same time it helps to safeguard the region’s indispensable Kensico Reservoir for future generations,” said NRDC senior attorney Eric A. Goldstein.

“Although development near vulnerable drinking water reservoirs always poses some risks, MBIA and its lawyers at Veneziano & Associates have gone the extra mile to add a new layer of protection for the Kensico’s watershed ecosystem,” said NRDC scientist Robin Marx.

Anthony Veneziano of Veneziano & Associates lauded his client, the Town of North Castle, and the environmental groups for “proving that the SEQRA process works,” noting that the “ interests of all parties were served in this process because of their mutual willingness to protect the environment while honoring property rights and Town interests.”

MBIA’s Chief Administrative Officer, Kevin Silva, says the agreement is representative of “MBIA’s desire to be a good corporate neighbor and a responsible steward of the environment.” He said “our company is proud to have met its own needs while working closely with the Town of North Castle, the New York City Department of Environmental Protection, and the environmental groups to forge this unique partnership.”

The environmental impact statement for MBIA’s proposal to construct a new 165,000 square foot office building expansion, a new multi-level parking structure, a corporate meeting house and other on-site amenities has just been finalized by the Town of North Castle, and incorporates the changes negotiated in this settlement.

As a result of the new agreement, environmental advocates will be supporting MBIA’s forthcoming applications to the Town Board for special permit approval and to the Planning Board for site plan approval. These applications are expected to be filed in early December. And with the new agreement, the threat of a litigation challenge to the revised MBIA proposal has been averted.

The seven group environmental coalition -- composed of the Bronx Council for Environmental Quality, Federated Conservationists of Westchester County, Friends of Jerome Park Reservoir, NYPIRG, NRDC, Riverkeeper, and the Sierra Club Lower Hudson Group -- released a Low Impact Alternative Plan last February, which formed the basis for the newly announced settlement.

“This is proof that when we focus on common interests, we can work toward common goals. This low impact alternative will be shown to be a cost savings for MBIA, while saving New Yorkers their health and safety, as well as helping ot avoid the costly process of filtration, “ stated Karen Argenti of the Friends of Jerome Park Reservoir and the Bronx Council for Environmental Quality.

“We look forward to continue working with the stakeholders to monitor compliance with this agreement and fervently hope that MBIA’s actions will inspire others in the business community to work with environmentalists in protecting our water supplies,” concluded Cathleen Breen, NYPIRG’s Watershed Protection Coordinator.

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