Newsletter 142

Newsletter #141 Acrobat file Return to archive Newsletter #143

350 BLEECKER STREET NEWSLETTER #142
October 27, 2001

The board met on October 15, 2001. Among the items discussed:

CONSTRUCTION - BLEECKER STREET PLANTERS

Sal-Mar finished the sheet metal installation work on October 27, 6 weeks later than the previous deadline. The work was delayed by the WTC disaster as well as repeated errors by the subcontractor sheet metal fabrication shop. The errors did not raise the price to the co-op (about $25,000), but the repeated delays were frustrating, since everyone wants to put plants into the planters as soon as possible.

LANDSCAPING FOR BLEECKER STREET PLANTERS

Ron Walker, the landscape architect, should have his drawings ready by approximately November 5. As soon as the plans are received, they will be posted or distributed so that everyone can contribute their comments and suggestions. After any requested changes, several nurseries will bid on supplying the plants, soil, and labor for installation. The goal is to finish around Thanksgiving. The co-op has $20,000 set aside in its budget for this project.

NEW AWNING

Acme Awning installed it for $1,650. Rifat Otovic and Jerry Rawls repainted the steel frame.

FINANCIAL REPORT

A two page year-to-date financial report by the Treasurer, Marylou Moravec, is attached. The co-op expects to end the year with about $118,925 instead of the budgeted $112,685.

The financial report was substantially delayed because the former managing agent, Ken Newman, submitted incorrect financial reports repeatedly, and our CPA firm, Marin and Montanye, could not get the data needed to certify the Year 2000 audit. Our Year 2000 financials were finished by the CPA firm on September 6, and the Year 2001 financials are partially dependent on an audit (not yet completed) of Ken Newman's last month as managing agent, January 2001.

So the figures attached are based on the Year 2000 audit finished September 6, unaudited figures reported afterwards, and estimates made by the Treasurer. The estimates are based on last year's figures for similar items, January through September 2001 figures, and this year's budget. Budgeting 2001 was difficult because Ken's financial reports in 2000 were problematic.

Newsletters in previous years reported this information once or twice a year. Going forward, everyone should expect to receive this information monthly, posted on the web site. If you do not have access to the Internet, please ask any board member to print it out for you.

Our cash position was $280,000 at the end of September, slightly above budget. The newsletter used to report the cash position monthly, but this ended when it became apparent that financial reports submitted by Ken Newman as managing agent were incorrect. Furthermore, bills were not paid promptly on a consistent basis by Ken's office, so the cash position sometimes was misleading. For example, as part of the audit, the CPA reported that on December 31, 2000, $40,939 was owed, but not paid, by the co-op.

350 Bleecker Street Apartment Corp.
2001 Estimate
($ in 000's)

			Estimate	Jan-Sept.
		2001	Over/(Under)	Unaudited	Oct-Dec	Full Year
		Budget	Budget	Actual	Estimate	2001
Income
Commericial Rent		$ 104,978	$ (102)	$ 90,542	$ 14,334	$ 104,876
Laundry Income		12,000	2,448	11,448	3,000	14,448
Transfer Fees		25,000	(3,600)	21,400	-	21,400
Maintenance	(1)	1,041,587	(12,769)	768,700	260,118	1,028,818
Other Income (Sublets, etc.)		15,850	4,040	13,090	6,800	19,890
Total Income		$ 1,199,415	$ (9,983)	$ 905,180	$ 284,252	$ 1,189,432

Expenses:
Real Estate Tax	(2)	300,000	28,521	156,541	171,980	328,521
Mortgage Interest & Principal		290,400	126	217,317	73,209	290,526
Other Taxes		1,668	2,825	2,067	2,426	4,493
Total Taxes & Interest		592,068	31,472	375,925	247,615	623,540

Insurance		33,120	92	33,212	-	33,212
Management Fee		35,000	1,209	26,333	9,876	36,209
Legal Fees	(3)	87,000	31,077	110,577	7,500	118,077
Accounting	(4)	7,200	4,849	10,300	1,749	12,049
All Other (security, postage, etc.)		13,956	4,144	11,610	6,490	18,100
Total Administration		176,276	41,372	192,033	25,615	217,648

Labor	(5)	200,364	18,584	157,247	61,701	218,948
Utilities	(6)	90,000	32,065	71,255	50,810	122,065
Maintenance & Repairs		77,765	(25,560)	38,774	13,431	52,205
Contingency		15,000	(15,000)	-	-	-
Construction/Capital Projects	(7)	228,750	(140,050)	37,608	37,608	88,700

Total Expense	(8)	$ 1,380,223	$ (57,116)	$ 872,843	$ 450,264	$ 1,323,107

Net Operating Income/(Loss)		$ (180,808)	$ 47,133	$ 32,337	$ (166,012)	$ (133,675)

Projected Cash @ 12/31/01		$ 112,685	$ 6,240			$ 118,925

Notes:

(1) Maintenance and assessments are below budget because Ken Newman's January accounting records show an underpayment.

(2) Due to the city's fiscal calendar, real estate taxes are unknown at budget time, so an estimate is made. The co-op challenges its assessment every year.

(3) According to our CPA, Ken Newman did not pay $13,814 of legal expenses in 2000 so this amount was paid in 2001. The amount was unknown at budget time because Ken's books seemed in disarray. There were unanticipated legal expenses relating to water damage caused by 102 Charles Street.

(4) Audit fees were substantially higher than planned because the audit took an extra 7 months due to difficulties with Ken Newman's records.

(5) $10,901 of the overage appears in the January records of Ken Newman. This amount is being audited and may actually relate to the previous year.

(6) According to our CPA, Ken Newman did not pay $13,447 of utilities in 2000, which had to be paid in 2001.

(7) Construction was overbudgeted approximately $100,000 because AM&G was paid most of its holdback in 2000 not 2001. Additionally, AM&G refused to install new air conditioner grills and sleeves for $34,000. Major construction costs were approximately:

Zolotone painting	$30,000
Planter sheet metal	$35,000
Planter landscaping (estimate)	$20,000
Nawkaw brick staining	$8,000
Commercial Space Water Meters (to be reimbursed by Ken Newman)	$6,000
	$89,000

(8) According to our CPA, Ken Newman did not pay $40,939 in expenses in 2000. $27,261 of this total is discussed in the footnotes above.

NOTICE OF THE ANNUAL MEETING OF SHAREHOLDERS OF
350 BLEECKER STREET APARTMENT CORP.
TO BE HELD ON NOVEMBER 13, 2001 7:30 PM
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 13, 2001 at 7:30 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, 2001. The transfer books will not be closed.

By order of the Board of Directors.

James D. Kafadar, Secretary
October 29, 2001

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