Peter Cooper Village residents hit with MCI

Tim Collins, counsel for ST-PCV Tenants Association

Tim Collins, counsel for ST-PCV Tenants Association

By Sabina Mollot

Just one week after residents of Stuyvesant Town were hit with a major capital increase (MCI) for video intercoms and a security command center installed in 2009, residents of Peter Cooper began receiving notices in the mail that their rents too would be increased, in this case $10-$15 per apartment. The MCI, also for security upgrades, comes with a retroactive portion tenants are responsible for paying of $480-$650.

Though as of Friday, only two buildings got the notices, Susan Steinberg, chair of the ST-PCV Tenants Association, said that the rest of the buildings in PCV were also likely to get the same news, and possibly Stuy Town, too.

In a Facebook post, the Tenants Association said that its attorney Tim Collins filed objections in May of 2012 to this MCI “and as in the case of the ST Video Intercom MCI, these objections have either ignored or overlooked.”

Currently the Stuyvesant Town video intercom MCI is being disputed by the TA via a petition for administrative review (PAR) and Collins will also do the same for the latest MCI.

The Tenants Association said it has a few general objections to the MCI, which include claims that:

• The system replaced a full electronic security management system installed in Peter Cooper Village only in 2004. Before a system is replaced, it must have exceeded its useful life.

• Critical documentation, such as government permits, and plans and specifications were not submitted, but should have been. There were different contract amounts cited. Change orders lacked proper verifiable information. Some change orders were for repair and restoration not eligible for MCI rent increases.

• The security command center was a new facility installed at 518 East 20th Street. This security center was relocated to 317 Avenue C as part of an overall rental plan for retail spaces on the property. This work did not qualify for MCI treatment, even before Sandy destroyed the command center.

Steinberg added that she is concerned because “there are other MCIs out there and I would hate to think they are all going to be approved. What would be horrible is getting thousands in retroactive fees and the rest will be there forever unless something happens with our rent regulation laws.”

As with the Stuy Town MCI, the Tenants Association is asking that residents don’t file individual PARs at this time, but instead send the association the docket numbers that appear on their MCI documents.

The Tenants Association will be preparing a Google form for affected tenants to send the docket numbers and will soon be spreading the word via an email blast and building postings.

Steinberg also noted that the cost of fighting the MCIs is going to be pricey and requested that tenants consider making a donation to help with the effort.

“This is going to be an enormous legal fee,” said Steinberg.

MCIs are rent increases owners of rent stabilized properties can charge for making improvements and upgrades and are added to tenants’ base rent. According to the Tenants Association, there are currently five pending for ST/PCV. In 2009, the Tenants Association learned that 20 percent of the MCI applications filed in this city came from ST/PCV alone.

CWCapital has not yet responded to a request for comment.

This article has been revised to include additional information about the the Tenants Association’s arguments against the MCI.

 

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CW talks plans for new management office

The Avenue C management office will be converted into a children's facility. (Photo by Sabina Mollot)

The Avenue C management office will be converted into a children’s facility.
(Photo by Sabina Mollot)

By Sabina Mollot

In anticipation of major construction work to be done on the First Avenue Loop for the new management office, reps for CWCapital quietly met with residents in buildings along the loop last week to discuss the planned project and their concerns.

The meeting was held on Monday, October 7 at the auditorium of the Simon Baruch Middle School and was also attended by leaders of the ST-PCV Tenants Association. TA Chair Susan Steinberg said buildings where tenants may be affected by the construction and noise were fliered, though there wasn’t any promotion beyond that. However, one resident, who lives at 274 First Avenue, where the new management office will be built in the current Oval Concierge space (274-276), said he didn’t recall seeing any notices.

Still, there didn’t appear to be shortage of interest from tenants, with at least 100 people in attendance, said Steinberg.

Leading the meeting was Andrew Cain, an asset manager for CWCapital and Claire Hackney, vice president of construction for the company, who answered the bulk of tenants’ questions.

CW’s plans have yet to be approved by the Department of Buildings and there were also no designs available for tenants to view.

“It would have been nice to see drawings, but unfortunately they didn’t have them with them,” said Steinberg.

As T&V reported in June, CWCapital has said with the new management office in the Oval Concierge space, Oval Concierge would go elsewhere on the First Avenue Loop, but it wasn’t said exactly where it would go at the meeting.

Currently, the only readily available ground commercial space is being used by the Community Center, and said, Steinberg, “I would be really shocked if they did away with the Community Center.”

What CW did say, recalled Steinberg, was that the company hopes work can be done throughout the winter “when there’s less activity and less people walking by.” How long the project will take is uncertain, but what does help is that no jackhammering is anticipated due to a lack of bedrock under the building.

“It’s mostly fill,” said Steinberg, “so there’ll be trucks removing earth and pretty much that side of the building (the First Avenue) side will be impassable,” she said. “People will have to use the loop side.”

Part of the project however includes upgrades for a nearby Playground 8, including the addition of a water feature. Steinberg added that management conceded some trees will have to come down in order to extend the back part of the building. (First Avenue is considered the back.) The extension will also include a green roof over a landscaped area.

In June, management said in a newsletter to tenants that the new management office would be designed with future disasters in mind so it could function as a command center, and that work was expected to be completed by spring of 2014. (There wasn’t a timetable given at the meeting.)

As for residents’ concerns, Steinberg recalled that there was some mention of a lack of access due to the fact that there would be a staff of 100 people doing this work and a staff-only entrance.

“So the character of the whole area is going to change,” said Steinberg. “It will be less residential in character and more commercial.”

However, some residents seemed relieved that management would once again be onsite and this time not all the way on Avenue C. “There are going to be tradeoffs,” said Steinberg. “So we’re not 100 percent overjoyed or annoyed.”

Steinberg said she didn’t believe there could be an MCI for this type of project.

Following the meeting, when asked for comment, a spokesperson for CW would only say there would be an announcement about the plans soon.

As for the old management office on Avenue C, CW has said part of the space will be converted into a facility for children. Talks are currently being held with potential vendors.

Following the space being flooded during Hurricane Sandy, Avenue C in Stuyvesant Town has since been declared a flood zone. CWCapital and management company CompassRock moved management operations to temporary spaces in the Oval for a few months and then moved offsite. Since then, as T&V has reported, residents have found that it’s gotten harder to reach management.