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Newsletter #112 Acrobat file Return to archive Newsletter #114
ANNUAL SHAREHOLDER MEETING: November 10, 1998 - 7PM - Exercise Room - Bring a chair! The Annual meeting usually has several parts: l. Discussion by board members of issues and events over the past year as well as likely upcoming issues 2. Questions and comments from the rest of the shareholders 3. Discussion on possible Amendment(s) to the Proprietary Lease, if any are proposed 4. Campaign statements by shareholders running for election to the board 5. Voting for or against the Amendment(s) and voting for board candidates 6. Discussion of the year's share prices, based on recent sales Every year all 7 board member seats are up for election. All shareholders as of November 1 at noon are eligible to run for election and to vote. The number of shares is the number of votes. If you'd like to run for the board, and want to find out what is involved in being a board member (the time commitment, the responsibilities, etc.) please speak to any board member(s). If you have a campaign statement you'd like to make in writing, it will be duplicated by the office and given out at the meeting, if you wish. You are also welcome to fill out the attached "Candidate Form" which will be duplicated and given out at the meeting. Board candidates usually nominate themselves. There is no requirement that the nominations be made in advance of the meeting, and no requirement that candidates fill out written forms or statements. In the past, board meetings were held at 7PM the second Tuesday of each month. Most months have seen at least one other board meeting, although during the construction project, the Construction Committee of the board has met at least once a week. The 7PM meetings usually end after 3 to 4 hours, although some meetings have gone longer. Construction meetings usually last 1 to 2 hours. Board members also work on various projects between meetings. In past years, sometimes only 7 people nominated themselves, although sometimes there were more than 7 candidates for the 7 positions. If you cannot attend the Annual Meeting, you may fill out a proxy form and give it to someone who'll represent you at the meeting. As of this writing, at least 5 board members intend to run for re-election and all 6 will be happy to accept your proxy form if you cannot attend. It is critical that as many shareholders vote as possible, so that a quorum is achieved, and everyone's interests are well represented. In the past, almost all shareholders were present by proxy or in person. The annual meeting usually ends by 9:30 PM or 10 PM. Refreshments will be served. It is a great way to meet your neighbors and find out about the building's issues. Please remember to bring a chair! BOARD RESIGNATION Cynthia Spry resigned from the board. The other board members recognized her and thanked her for her service to the co-op. AMENDMENT TO PROPRIETARY LEASE The Annual Meeting will include a vote on the attached Amendment, which was approved unanimously by the board. This Amendment allows heterosexual unmarried couples as well as gay and lesbian couples to transfer ownership under certain circumstances, without paying the 2% transfer fee to the co-op. The Amendment requires a minimum 2 year resident ownership by both parties, and gives the burden of proof to the parties concerned. The Amendment also allows transfers to and from trusts without paying the 2% fee, under certain circumstances. The board voted for this Amendment because the previous rule: 1. benefited gay and lesbian couples but not unmarried heterosexual couples 2. did not require a minimum time for a non marriage relationship to qualify for exemption of the flip tax 3. did not benefit shareholders wishing to minimize estate taxes 4. was unclear about the burden of proof The 2% transfer fee is sometimes called the "flip tax." Shareholders paid $14,196.70 in transfer fees so far this year, and $17,170 last year. For the Amendment to pass, at least 2/3 of all shares must be voted in favor. Since there are 17,222 shares, l l,482 must vote for the Amendment for it to pass. The proposed Amendment as well as the current rule are both attached, so you can easily compare them. UTILITY AUDIT The board hired National Equity Development Group to audit the co-op's utility bills. Sometimes Con Ed makes mistakes that are caught by an auditor. The auditor gets one third of any overcharges discovered. Our auditor secured a refund of $3,359, so the fee was $1,120. The co-op netted $2,239 from this transaction. CONSTRUCTION DAMAGE AND CLEANUP If you believe that your windows have fire escape paint or cement splattered on them, please write this down on a maintenance request form (available in the mail room) to request a window cleaning. If there is any other damage or issue caused by the construction work, please report that as well. You are also welcome to put your concern in writing (including e-mail) and give it to any board member. It is urgent that you report these problems as soon as possible, since the project is coming to an end. The exact ending date is not precisely known, however, since it may depend on certain legal and/or architectural filings and approvals. For example, the back yard pavers may have to be approved by the Landmarks Commission since they can be seen from the street. CONSTRUCTION LEGAL AND ARCHITECTURAL ISSUES To complete our project properly, the board is consulting with: Malcolm Taub, an attorney; Alex Neratoff, an architect experienced in Landmarks issues; as well as its engineer, Kurt Rosenbaum. Because our building is in a Landmarks District, even though it is not a "Designated Landmark," certain specialized Landmarks rules must be followed carefully. AIR CONDITIONERS Over the years, several through-the-wall air conditioner units were installed incorrectly or their wall sleeves deteriorated, allowing moisture to collect within the building walls. These sleeves are being replaced for $250 each at the co-op's expense, as part of the construction work. The new roof over the retail stores is higher than the old roof. Additionally, certain air conditioners for the first floor apartments had sleeves whose lowest edge was slightly below the previous roofline, causing moisture to enter the building wall. As part of the construction project, these air conditioning units were relocated or replaced at the co-op's expense, because the co-op is responsible for structural repairs. If you intend to replace your air conditioner, please do not alter the sleeve that it is placed in. In the past, some occupants removed the back grill to accommodate air conditioners that are deeper than the wall so that they would not protrude into their apartments. This leads to water penetration and damage to the building. Any work on the sleeve requires prior approval from the Board. Shareholders are usually responsible for their air conditioners, except when structural elements of the building are compromised. ISDN TELEPHONE SERVICE - UPGRADE FOR FREE THROUGH 11/13/98 A previous Newsletter explained that ISDN phone service can be installed by Bell Atlantic. This will speed up Internet connections (the speed can double!) and allow extra voice and fax phone lines in any apartment. Bell Atlantic announced recently that upon request they will upgrade your service to ISDN free of charge through November 13, 1998. Certain specialized equipment must still be purchased to use ISDN service, however. Furthermore, your Internet provider must be ISDN compatible. And there may be other costs and restrictions. If you have any questions or want to order ISDN service, call 1 800-897-ISDN. Because of its advantages, ISDN service is growing rapidly. Generally, people who've used ISDN like it much more than regular phone service. Note that the Newsletter and the board do not endorse any particular phone company or phone service. VISITOR POLICY Planning to have someone visit your apartment while you're not around (to feed your pet, to do housecleaning, to enjoy the apartment while on a visit to New York, to water your plants, to take in your mail, etc.)? Please call Ken Newman as much in advance as possible, to make the arrangements. You'll be asked to fill out a form that will be copied to the building staff so they know whom to admit and when. Generally, if the visitor will not be staying overnight, there will be a simple form. If the visitor is staying overnight without your presence, depending on the length of the stay, you may be asked to submit a sublet application, which will require your guest(s) to have a board interview in advance of their stay. If the stay is brief, not more than 14 days, a sublet application is not needed, but another form will still be required in advance. This policy was adopted because:
1. Sometimes visitors appear unexpectedly and ask the staff for admittance. The co-op does not want the staff to accidentally admit an inappropriate person who is not welcome by that shareholder at that time. From time to time, errors were made, to the board's dismay. If you have any suggestions or questions or wish to report a problem, please contact any board member. DIPLOMATIC IMMUNITY The board interviewed a proposed sublet candidate who is a consular officer with diplomatic immunity. The candidate was OK'd by the board, provided he would waive his diplomatic immunity in all matters pertaining to the co-op. The board was concerned that any possible legal action would be prevented, unless the diplomatic immunity was waived. Many co-ops refuse to accept persons with diplomatic immunity because of well-publicized bad experiences in the past. Sublet interviews are conducted along similar lines to purchase interviews, although only 3 board members are required for a sublet interview. STORAGE SPACE The board is considering a proposal to build storage spaces in the basement. Twelve to fourteen spaces would be installed in a room to be built from space currently used by part of the super's workshop. This room would have its own entrance door facing the elevators in the basement. Each space would be approximately 3 feet wide by four feet deep by 7 feet tall. Each space would have its own key and each "space customer" would have a key to the storage room entrance door, so access would be available 7 days a week, 24 hours per day. Theft insurance would be up to each space customer. Often this type of insurance is included in a regular policy anyway. For the past few years the bike spaces have been sold out at $75 (now $100) per year each. The bike facility was constructed very inexpensively. Unfortunately the storage room is likely to cost the building between $5,000 and $15,000, depending on the design. A local mini-storage is offering a minor building discount. The company may negotiate a greater discount if we have a significant number of occupants interested in off-site storage. The board would like to know how many people want storage space, and how much money people are willing to pay. If you are interested in possibly being a "space customer", please fill out the attached form, and give it to any board member (or slip it under any board member's door) by November 12, 1998: NAME _____________________________ APT _____________ PHONE NUMBERS: Day: ______________ Evening ______________ The maximum I would pay annually (1 year in advance, in 1 single payment) for a 3 foot by 4 foot storage space, 7 feet tall (approximate size) in the basement, is (circle one): $150 $250 $500 $750 $1,000 $1,250 $1,500 If you'd like more than 1 storage space in the basement, please write the number of spaces desired here ___________ If you are interested in a discount on off-site storage at a local mini-storage facility, please check this space __________
If you have any suggestions, questions or comments, please write them here:
PURCHASE REQUIREMENTS From time to time, the board becomes concerned about the finances of a prospective apartment purchaser. In a f'ew situations, an additional financial requirement has been made a condition of acceptance. For example, recently the board interviewed a prospective buyer and required a deposit of approximately six months' maintenance at the time of closing for approval of the transfer. The board will deduct each month's maintenance and assessment from this deposit. The deposit was required because: 1. based on the papers submitted by the buyer, there would be minimal cash (and equivalents) left right after the closing Every buyer's financial situation and character is unique. That is why each person is interviewed carefully, although similar topics are discussed at each interview. Competing interests are always on the board members' minds:
1. their desire to accommodate any shareholder who wants to sell an apartment The board members ask themselves these types of questions:
1. Will this buyer be likely to pay the co-op maintenance and assessment(s) promptly, or is it likely that the payments will be late? Among the methods the board members use to make these decisions:
1. Buyer's personal references No purchase interview is done with less than 4 board members. The only board members who vote are those who've attended the interview. Typical interviews take between 25 minutes and 1 hour. Discussion afterward (in private, without the buyer or seller present) usually takes 10 minutes to 1 hour. Board members with a personal interest in a sale or sublet do not participate in the interview or vote. Rejections have occurred less than 5 times since the co-op was founded in 1985. Major reasons rejections occurred:
1. buyer(s) were not truthful about their occupation The decision to accept a purchaser requires a majority of board members voting. For example, if 4 members do the interview, 3 out of 4 must vote to accept. BUILDING OWNERSHIP Of the original 137 apartments:
a. number of apartments owned by sponsor, not for sale at this time: 32
APPLICATION FOR BOARD OF DIRECTORS
NAME: _____________________________________________ APT.# _____ ADDRESS: ______________________________________________________ PHONE: ____________________ HOME ____________________ /OFFICE APPLICABLE WORK HISTORY AND QUALIFICATIONS: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ WHY INTERESTED IN SERVING ON BOARD: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ WHAT IDEAS FOR FUTURE ACTIONS OF BOARD: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________
PROXY STATEMENT
NOVEMBER 10, 1998 I hereby give my proxy to______________________________________________ with respect to the shares I own in 350 Bleecker Street Apartment Corp. to be used at the shareholders meeting now scheduled to take place on November 10, 1998, and any adjournments thereof. I state that I have ________ shares of the stock of the Corporation. I understand that this proxy is revocable in writing or if I am present at the meeting. Signature: _______________________________________ Print Name: ______________________________________ Signature: _______________________________________ Print Name: ______________________________________ Apartment Number: ___________________________________ If shares are owned jointly, all owners must sign. Dated: , 1998 IMPORTANT: To assure the necessary representation at the Annual Meeting, please sign, date and return this proxy to the managing agent. Where shares are held in the names of two or more persons, all MUST sign. If you attend the meeting in person, the proxy will be returned to you at the meeting, at your request.
CURRENT AMENDMENT
AMENDMENT TO PROPRIETARY LEASE Immediately following subparagraph (vi) in Paragraph 16(a) new subparagraph (vii) is added as follows: (vii) As a condition to the transfer of shares of stock in the Corporation as an incident to a sale of the apartment to which such shares have been allocated, the seller shall pay to the corporation, by a certified check drawn on a New York bank payable to the Lessor, a fee of two per cent (2%) of the total sale price applicable thereto, payable at the time of such transfer. Such fee shall not be applicable to Unsold Shares (as defined in the Offering Plan therefor) or to transfers from the executors or administrators of a deceased stockholder to a person who, immediately prior to the death of such stockholder was a member of the immediate family of the Lessee or to assignments to an assignee who, at the time of the assignment, is a member of the immediate family of the Lessee, or to an executor or other personal representative on the death of a Lessee. For purposes of this subparagraph, "immediate family" shall mean the spouse, former spouse, parents or children of the Lessee and the economic and social partner of a Lessee in an established gay or lesbian relationship in which both partners jointly owned and resided in the Unit being assigned. For purposes of this subparagraph, the "sale price" in a mortgage foreclosure sale shall mean the amount of the outstanding balance of the mortgage obligation.
Copy received: ______________________________________ Date:________________________________
PROPOSED AMENDMENT TO PROPRIETARY LEASE Immediately following subparagraph (vi) in Paragraph 16(a) new subparagraph (vii) is added as follows: (vii) As a condition to the transfer of shares of stock in the Corporation and as an incident to a sale of the apartment to which such shares have been allocated, the seller shall pay to the corporation, by a certified check drawn on a New York bank payable to the Lessor, a fee of two per cent (2%) of the total sale price applicable thereto, payable at the time of such transfer. Such fee shall not be applicable to Unsold Shares (as defined in the Offering Plan therefor) or to transfers from the executors or administrators of a deceased stockholder to a person who, immediately prior to the death of such stockholder, was a member of the immediate family of the Lessee or to assignments to an assignee who, at the time of the assignment, is a member of the immediate family of the Lessee, or to an executor or other personal representative on the death of a Lessee. For purposes of this subparagraph, "immediate family" shall mean (A) the spouse, former spouse, parents or children of the Lessee or (B) the economic and social partner of a Lessee in an established relationship in which both partners jointly owned and resided in the Unit being assigned for at least two years prior to the transfer. For purposes of this subparagraph, the "sale price" in a mortgage foreclosure sale shall mean the amount of the outstanding balance of the mortgage obligation. For purposes of this subparagraph, the "sale price" in any other non-arm's length transfer shall mean the price determined by averaging the three immediately preceding sales in the cooperative cooperation's building if comparable or, at the Board's option, by appraisal at the expense of the transferor. In the case of a transfer which is required to and has obtained the prior consent of the corporation's Board of Directors, if the transferor or transferee is a trust, exemption of the transfer from the payment of the fee shall be determined upon each change of ownership or beneficiary or occupancy by looking through the trust entity to the actual beneficially interested parties as if no trust intervened in the transfer. This provision does not alter the Board of Director's powers concerning the granting or withholding of its consent to any proposed transfer. The burden of proving entitlement to exemption from the transfer fee shall be upon the party or parties claiming to be exempt. Exemption from the fee shall only be available if all participants in the transaction are in an exempt category. Italics indicate changes from previous amendment. |
Newsletter #112 Acrobat file Return to archive Newsletter #114
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