Garodnick: Tenants have moved on
The following is an open letter from Council Member Dan Garodnick to Charles Spetka, CEO, CW Financial Services LLC.
Dear Mr. Spetka:
Ten months ago, the Stuyvesant Town and Peter Cooper Village Tenants Association announced that it had partnered with Brookfield Asset Management to put forth a plan to buy the property on behalf of the tenants that would satisfy CW Capital’s obligations to its bondholders.
Since that time, the TA/Brookfield partnership approached you many times and has even proposed to you an offer structure that has the potential to satisfy your obligations in full. For reasons not at all clear to me, CW Capital has not yet given the tenants and Brookfield the necessary information to develop their structure into a formal bid. While you may not share a commitment to this community beyond your own short-term interests, I would expect that you would not willfully pass up an opportunity to satisfy your bondholders.
After decades of peace in Stuyvesant Town and Peter Cooper Village, the last six years have brought conflict, upheaval and instability. While we cannot point fingers at CW Capital for creating the problem, we certainly can fault you for prolonging it.
Accordingly, I write to advise you that we are going to pursue this issue directly with your bondholders; with Wells Fargo, the trustee and master servicer of the CMBS trusts; with Fortress, your parent company; and with the relevant rating agencies. To the extent that CW Capital cannot see the wisdom of having this conversation with an organized community that has secured a capital partner prepared to get you a full recovery, perhaps these others will.
Of course, to the extent that you wish to engage directly with the tenants in furtherance of their plan at any time, I am certain that their door will be open.
Daniel R. Garodnick Continue reading