October 30, 2000

To: Shareholders of 350 Bleecker Street Apartment Corp.

From: Al Del Vecchio; Laura Herbert; Keith Hutchinson; Jim Kafadar; Susan Kim; Mark Lilien; Marylou Moravec

Re: Our election statement

All 7 board members would appreciate it if you re-elected us to the board on November 14, 2000. We've been privileged to serve the co-op this year. We would all like to continue next year, too.

Here is a list of some of our accomplishments on your behalf:

I. Voting rights

Secret ballots were used for each of the two votes taken. This is the first time confidentiality was protected. Additionally, no one lost the right to vote. Previously, all multiple owners of an apartment had to sign a proxy or the vote was lost.

II. Communication

The most complete web site of any co-op in New York City was produced. It includes every form a purchaser or shareholder needs, such as the complete Proprietary Lease, every Newsletter ever produced (since 1987), the Bylaws, selling information, etc. Using the web site can save every apartment purchaser or seller at least $100 in fees charged by Ken Newman, since now this information is easily available.

A Newsletter was produced every month. The previous board produced only one Newsletter in a year. Open communication is a critical goal shared by all seven board members.

To save the shareholders time, the co-op now accepts e-mails and faxes for most documents, instead of insisting upon original signed versions.

III. Apartment sales and mortgages

To expedite every apartment sale, the board held a special meeting for every interview, instead of asking sellers and buyers to wait until the next monthly meeting. Board members signed financing forms for free, saving each shareholder requiring this form at least $100 each (the cost charged by Ken Newman for providing the same information). Last January, the board hired a new transfer agent, Andrew Brucker, instead of continuing to use Ken Newman. To make things more convenient, shareholders who want to purchase additional apartments or who want to refinance their apartments are no longer required to submit financial statements to the board, providing the shareholder has a good credit check and has paid all co-op fees on a timely basis.

Lockers were auctioned off, and all 12 bidders received space in the basement. Smoking in the backyard was banned.

IV. Finances

Shareholders received monthly financial updates for the first time. Bank accounts are being removed from Ken Newman's control this month. STAR real estate tax rebates were credited to the shareholders. About 33% of the shareholders had their maintenance paid electronically. The board negotiated a 12.5% lower legal fee with the real estate tax attorney. The board switched insurance brokers, saving the co-op $2,500 in commissions.

After receiving several incorrect monthly financial statements, the board requested an audit of the managing agent, Ken Newman. The audit has not yet taken place. For the first time in the history of the co-op, the board asked shareholders owed money to get in touch. The board is taking action to see that deserving shareholders will receive their long-delayed refunds shortly.

V. Physical Improvements to the building

The second elevator received a Magic Eye door sensor. The hallways received a Zolotone paint touch-up. The backyard pavers were installed. The planter walls along Bleecker Street were replaced. Certain steam lines were re-piped to balance the heat in many apartments. The super's workshop was renovated in order to help him find his tools and parts more easily.

The backyard garden was redone with new barrels and plants. The roof garden also received some improvements. The exercise room received a new treadmill, a recumbent bicycle, and a conventional bicycle.

VI. Garage lease

The board offered to share the cost of a neutral mediator to resolve the garage lease issue. After a secret shareholder ballot unanimously requested termination of the garage portion of the commercial lease, the board again attempted to negotiate with Ken Newman.

On October 13, Ken sued the co-op to stop the termination. To protect the shareholders, the co-op's attorney will answer the suit in court. Lawsuits are typical in these situations, and Ken Newman has several million dollars at stake. However, the board has offered to continue negotiating, regardless. (The text of Ken's suit is on the web site, www.350bleecker.com. If you do not have access to the Internet, and want to read the text, please ask any board member to print it out for you.)

More information about the garage situation will be in the next Newsletter, and will also be covered at the November 14 Annual Shareholder meeting.

VII. Managing agent search

After consulting with shareholders and also the two co-op associations, the board interviewed seven management companies. Final reference checking is now being done. Ken requested that his contract end before its January 31, 2001 deadline, but asked for $2,062.50 compensation per month. The board is negotiating with Ken to eliminate that obstacle.

Conclusion

The board would like to continue its work. Board meetings have been lively and the members respect each other's views. No board member has any conflict of interest issues, since no board member gets any fees from her/his relationship to the co-op. In the past, conflict of interest issues arose when former board members received fees for acting as attorney, managing agent, broker, etc. in co-op related affairs. Furthermore, every board member lives in the building.

Among the most important challenges ahead:

The board is dissatisfied with the pace of the waterproofing work, and recently hired an attorney to expedite it. Although work re-started, the pace is still not acceptable.

Bids for replacing the worn hallway carpeting should be finalized in the next week or so.

The garage lease termination negotiation will continue.

Please allow us to continue serving you. We are asking for your voting support, and hope to see you on November 14 in the Exercise Room at 7:30 PM. Every vote counts.

Sincerely,

Al Del Vecchio, apartment 5L, (212) 243-3890 (home), (917) 646-6709 (pager), adelvecc@siac.com

Laura Herbert, apartment 5U, (212) 645-1746 (h), (212) 977-6000 (w), lherbert@zagat.com

Keith Hutchinson, apartment 4U, (212) 229-0536 (h), keith.hutchinson@worldnet.att.net

Jim Kafadar, (954) 772-1444 (h), jameskafadar@yahoo.com

Susan Kim, apartment 6R, (212) 242 7919 (h), susankim@compuserve.com

Mark Lilien, apartment 3E, (212) 929 4619 (h), 973 868 8983 (w), marklilien@juno.com

Marylou Moravec, apartment 4E, (212) 727 7014 (h), 212 904 4513 (w), marylou.moravec@mcgraw-hill.com

NOTICE OF THE ANNUAL MEETING OF SHAREHOLDERS
OF
350 BLEECKER STREET APARTMENT CORP.
TO BE HELD ON NOVEMBER 14, 2000
IN THE EXERCISE ROOM OF
350 BLEECKER STREET, NEW YORK, NY 10014

Notice is hereby given to the shareholders of 350 Bleecker Street Apartment Corp., a New York corporation, that the Annual Meeting of Shareholders will be held in the exercise room of 350 Bleecker Street, New York, New York 10014 on November 14, 2000 at 7:00 PM for the following purposes:

a. To elect the Directors of 350 Bleecker Street Apartment Corp., and
b. To transact such other business as may properly come before the meeting or any adjournment thereof.

The date fixed by the Board of Directors as the record date for the determination of shareholders entitled to notice of and to vote at the Annual Meeting is the close of business on November 1, 2000. The transfer books will not be closed.

By order of the Board of Directors.

James D. Kafadar, Secretary
October 30, 2000

Return to Newsletter #128