Gramercy Park Block Association President Arlene Harrison plants a kiss on Lieutenant Sammy Ponce of the 13th Precinct, where she was one of the organizers of a luncheon last Thursday.
By Sabina Mollot
In a show of support to local cops following the shooting deaths of two officers and amidst the unofficial but can’t-miss-it-either standoff between the NYPD and the mayor, Arlene Harrison, president of the Gramercy Park Block Association, held a luncheon last Thursday to recognize the work of the 13th Precinct.
The low-key ceremony and lunch at the stationhouse was attended by current and former officers on the beat, and organized, along with Harrison, by the precinct’s Detective Ray Dorrian and GPBA Board Member Kathleen Scupp.
At the event, Harrison acknowledged the cops’ rift with City Hall in a speech, saying the community’s support remained unwavering.
“Now, while the president, the attorney general, the mayor and the police commissioner continue to play their increasingly dangerous political blame games, your lives are more than ever on the line,” she told the crowd. “When you are not safe, no one is safe. When you are in danger, we are in danger. Once again we return here today to embrace you, to support you, and to tell you how grateful we are to you and how much we love you.”
Your story of January 8, 2014, entitled “New business aims to find sublets for students in Stuyvesant Town,” may lead to a misimpression, namely, that making arrangements for a sublet through Lucas Chu may be the complete, legal process.
Tenants should be aware that ST/PCV sublets are governed by rent stabilization regulations. DHCR Fact Sheet #7 lays out the obligations of the prime tenant which include, among other things, informing the owner of an intent to sublet 30 days in advance by certified, return receipt letter and spelling out the terms of the sublease.
Unsuspecting tenants may not realize their obligations or even that they may be in violation of rent regulation laws and unknowingly circumventing these requirements. The result could be eviction should the landlord choose to pursue it.
Ultimately, the approval of a sublet rests with landlord. As CWCapital’s spokesperson pointed out, Mr. Chu is marketing a legal service. This “legal service” is essentially a matchmaking service, but will CWCapital/Compass Rock vet the subletters? Is CW/CR now relaxing subletting requirements?
It used to be – and may still be – very difficult, if not impossible, for long-term tenants to get approval for a sublet. Are students in a privileged position?
Frequent short-term subletting increases the transient nature and instability of our community. It depletes our quality of life. It undermines our security. Characterizing Mr. Chu and the landlord’s apparent comfort with his services as outrageous is understating the case.
Susan Steinberg, Chair, Stuyvesant Town-Peter Cooper Village Tenants Association
Stuyvesant Town leasing office (Photo by Sabina Mollot)
By Sabina Mollot
A federal court judge has decided that the lawsuit against CWCapital by a group of junior lenders involved in Stuyvesant Town should be handled by a state court, as the lenders had been hoping.
It was on Monday when United States District Judge Alison Nathan remanded the litigation to the New York State court where it was originally filed.
In the decision, Nathan wrote that “this case invokes no comparable federal interest, scheme or agency. Rather it is a contract dispute between private parties, turning almost entirely on construction of a private contract, and failing to present any dispositive question of federal law.”
The lawsuit was filed last summer after CWCapital took ownership of Stuyvesant Town and Peter Cooper through a deed, rather than holding a planned foreclosure sale on mezzanine debt. A group of lenders represented by Centerbridge Partners had hoped for a chance to buy a key piece of the mezzanine or junior debt and accused CW of violating an intercreditor agreement. The deed-in-lieu of auction wipes out the value of the junior debt, they’d argued, allowing CW to reap an “unearned windfall” when the property is sold.
They also accused CW of inflating the interest it was owed to calculate the total senior debt at $4.4 billion.
However, in its arguments, the lenders said that even though they believe CW’s figures are wrong, they still stand to “reap windfall profits regardless of how the interest rate is calculated on the senior loan.”
Even when using CW’s “incorrect and vastly overstated senior loan payoff amount of $4.4 billion, the value of Stuy Town is still worth hundreds of millions of dollars more,” the lenders said.
News of the court action was first reported on Tuesday by Law360, a legal news service.
Michele de Milly, a spokesperson for Centerbridge, declined to comment on the latest court action. Brian Moriarty, a spokesperson for CWCapital, didn’t respond to a request for comment.
Last month, the total amount of debt as calculated by CW reached $4.7 billion, a figure announced at a Tenants Association meeting by Council Member Dan Garodnick. He explained the amount was due to interest and fees. It’s also the amount that was reportedly being prepared as a bid by CWCapital’s parent company, Fortress. The Tenants Association has since said it is still hoping for a tenant-led condo conversion with partner Brookfield.
Following the suit being remanded, Susan Steinberg, chair of the ST-PCV Tenants Association said it basically just means more waiting around for would-be buyers.
“The decision to remand the case back to state court means that if CWCapital is waiting to settle with Centerbridge et. al. before proceeding with plans to sell, it will have a longer wait,” said Steinberg. “Ultimately, so will would-be buyers, including the tenants here. Whether the remand is a good or a bad thing for either the plaintiffs or the defendants will depend on which judge the case comes before. We will stay tuned.”