Agenda of June 7th Meeting

Agenda /Information Meeting - June 7, 2000 8:30 PM
summary information

I. History of the Federal Co-op Condo Abuse Act

A. Common community facilities were tied up via "sweetheart" deals

B. Common community facilities include golf courses, club houses, laundry facilities, garages, etc. OK if facilities are also open to the public. Not included: retail stores.

II. Basic provisions of the Act

A. 2 year window, less 90 days, to vote to end control

B. In our case, window starts after sponsor loses 25% control

III. What we need to do at 350 Bleecker Steet

A. Get 70 votes in favor by July "end of window" date

B. Votes are confidential. Everyone will know who voted, not how they voted.

C. 80/20 rule: we have to be sure that our income from stores, garage, interest, etc. is no more than 1/5 of our total income, including maintenance, assessments, etc.

IV. Risks to 350 Bleecker

A. Sponsor threatened lawsuit. We have $201 million liability insurance from insurance company who has to defend us.

V. Risks to 350 Bleecker if we do not terminate the lease

A. Lose over $5 million income in favor of accepting $350,000 on sponsor's terms

VI. Sponsor's offer

$35,000 for 10 years vs. $90,000 for 60 years if we terminate(sponsor lease has approximately 60 years left)

VII. Research and sources

A. 4 experienced co-op law firms

B. 2 experienced co-op accounting firms

C. calling other co-op boards in Manhattan

VIII. Other buildings who've won

215 E 24 Street, 201 E 25 Street, 305 E 40 Street,

181 E 73 Street, 5-7 West 14 Street, 200 Central Park South

XI. Questions, suggestions, and comments

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