the developers are moving forward without the extra air rights and the board now has to take out a new loan. woops I’d sell if I lived there.
Developers of the former Bialystoker Nursing Home site on East Broadway aren’t interested in a revote at the Seward Park Co-op on the sale of air rights.
In June, about 58% of the apartment owners voting in a referendum supported the sale of 162,000 in development rights for nearly $54 million to the Ascend Group and Optimum Asset Management. But under the co-op’s by-laws, two-thirds were required to vote in favor for the referendum to pass, and Seward Park did not meet that threshold.
A group of shareholders later launched a petition drive, which called for a new vote. In a notice sent to residents late last night, the Board of Directors reported that more than 25% (422 shareholders out of 1600) called for a special meeting to reconsider the air rights issue. As a result, the board was poised for a second referendum. But the developers have said, “No thanks.”
The buildings, constructed in 1960, face at least $12 million in mandatory maintenance projects. The proceeds from the air rights sale would have been used to finance those projects, pay down the co-op’s debt and to replenish emergency reserves. In the absence of that $54 million pay day, the co-op is refinancing its mortgage. The board memo stated, “We plan to close soon on the 60 million dollar loan.”