The shareholders of Southbridge Towers' 1,651 apartments continue to war over whether the subsidized Mitchell-Lama coop should go private. On Tuesday night, they packed the Michael Schimmel auditorium at Pace University to hear Stuart Saft, attorney and primary author of the offering plan, speak about the contents of the "Black Book," and Carol Newman, CPA for Southbridge, address the financial issues. Dean Roberts, attorney for Southbridge Towers, moderated.

Among other issues, Saft answered questions about whether lenders would provide mortgages to outside purchasers in the event that SBT does reconstitute as a private co-op and some shareholders choose to sell. He affirmed that they would be eligible for financing, and that Fanny Mae (the Federal National Mortgage Association) agreed. Wally Dimson, president of the SBT board of directors, named some banks that have already indicated that they would offer such mortgages.

"I believe the audience had ample opportunity to have questions answered and information clarified," said Diane Harris Brown, one of the shareholders.

Paul Hovitz, another shareholder, took a dim view of the proceedings. "As expected it was like a time share offering," he said. "We listened to the CPA pooh-pooh all the negatives listed in the Black Book, claiming that only the best scenario should be expected. It was a paid commercial by the SBT Board, whose clear agenda is approval of the plan."

Fourteen of the 15 members of SBT's board of directors favor privatization.

Southbridge Towers tenants currently pay modest amounts of money to live there. A two-bedroom apartment with a balcony, for instance, currently costs $800 a month. However, should shareholders wish to vacate their apartments., their only option is to surrender them to the housing cooperative in exchange for their equity. In the open market, the Southbridge Towers apartments could be worth a half million dollars each or more.

The shareholders will vote on the offering plan Sept. 28, 29 and 30. It must be approved by two-thirds of the shareholders to take effect. Even if the occupants of an apartment disagree with each other, each apartment will get one vote.

Bridget Schuy, a licensed real estate salesperson who has lived at Southbridge Towers for more than 20 years, said that she favored privatization. "Basically, it's a win-win situation for everyone," she said. "If people want to remain in their apartments under the Mitchell-Lama status, as it is now, they will have that option and they will also reap the benefits of privatization."

She said that if Southbridge Towers goes private, there would be more reserve funds and there would be more money for capital improvements.

Though her two-bedroom apartment would be worth a considerable sum of money should Southbridge Towers privatize, she said she had no intention of selling. "I love this neighborhood," she said. "I raised my son here. Besides, where would I go? I work in real estate! Honestly, Southbridge is the best deal in New York. Even if we could turn over our apartments at fair market rates, I don't believe that anyone would be able to find anything comparable in Manhattan."

Roberta Singer, a Southbridge Towers resident who opposes privatization, said that it "would close the door to decent, affordable housing for hundreds of people on the waiting lists. It may force moderate income people and those living on a fixed income out of their homes."

She said that the offering plan whitewashes some of the risks. Among them, she said, is that "Funds for repayment of Equity are not provided for in any of the budgets. If one-third of shareholders opt to remain as renters, $10.3 million would have to be returned to them in the first year. Where will this money come from?"

She also raised questions about asbestos in the buildings and about the cost of maintenance and repairs, now included in each shareholder's maintenance fee.  "There is no plan, no budget, and no professional opinion as to the cost of encapsulating or removing friable asbestos in our homes," she said in a statement. "Shareholders will be 'responsible for remediation of all environmental hazards within the Apartment,'" she said, quoting a sentence from the offering plan.
 
Singer asserts that, "Shareholders need to know - and the sponsor has an obligation to provide - all the risks that can be knowable. What Sponsor has told us is that "The budget for the first year of operation provides that the Apartment Corporation will be operating at a deficit."

"Durst under pressure, could lose share if 1 WTC sales don't spike," New York Post, 7/28/14. "It's crunch time for the Durst Organization at 1 World Trade Center," says the New York Post. "Despite popular wisdom that Douglas Durst's 10 percent, joint-venture partnership with the Port Authority was a sweetheart deal, it turns out he's under the gun to find new tenants or face getting booted from the project." The Post says that according to Port Authority board minutes from August 2010, "if Durst doesn't achieve a 'minimum threshold for lease-up' once the tower opens, the agency can buy back his $100 million share." The threshold is "150,000 square feet within the first year after the tower's opening - which begins when Cond� Nast moves in by January. Moreover, it isn't sufficient that the new leases merely be signed by the end of 2015 - the tenants must actually be paying rent on them in that year." For the complete article, click here.

"Tribeca's Newest Conversion Has Floorplans, $53M Penthouse," Curbed.com, 7/28/14. Curbed.com has floorplans for Tribeca's handsome book bindery-turned-condos at 443 Greenwich Street. According to Curbed, "the sales office for the 42 condos officially opens in September, with the following pricing: two-bedrooms from 2,400 to 3,000 square feet ranging from $7 to $8 million; three-bedrooms from 2,600 to 4,600 square feet ranging from $7.5 to $12.95 million; and four-bedrooms from 3,600 feet to 4,250 square feet ranging from 10.5 to 14.25 million. Then there are the penthouses, which will range from three to five bedrooms, or 3,400 square feet to 8,900 square feet. They'll start at $15 million, with the most expensive projected to cost a whopping $53 million." For the complete article, click here.

Downtown Boathouse loses Governors Island pier: Downtown Boathouse, which offers free kayaking opportunities, had been putting its boats in the water on Governors Island, however, the pier from which they were being launched was badly damaged on July 12, City of Water Day. Graeme Birchall, Downtown Boathouse president, said that the organization was working with the Trust for Governors Island and the New York Harbor School to ensure that the free public kayaking program restarts as soon as possible. However, he said there was a good possibility that there would be no more kayaking at Governors Island for the rest of the season.

Downtown Boathouse is run by volunteers. It has kayaking programs on weekends and some week days at Pier 26 (North Moore Street on the Hudson River). Birchall said that during the month of July, around 4,000 people participated in these programs. For more information, click here.

"Teenager Pleads Guilty in World Trade Center Climb," New York Times, 7/30/14. "A teenager who made a surreptitious climb to the top of the 1 World Trade Center tower has pleaded guilty in an escapade that fanned concerns about security there," says The New York Times. "The youth, Justin Casquejo, admitted in Midtown Community Court in Manhattan on Wednesday that he broke a New York City misdemeanor law against scaling tall buildings without permission. He is expected to be sentenced in September to 23 days of community service." For the complete article, click here.

 
Presenting organizations include the Brooklyn ARTery, Sculptors Guild, New York Historical Society, Children's Museum of the Arts, Empire Historic Arts, Better than Jam, Third Rail and the Holocenter.
 
This year, Governors Island is open seven days a week through Sept. 28. It has five miles of bike paths, 30 new acres of park and special events and programs every week. For a full calendar of events, click here.

Ferries run from Lower Manhattan all seven days and run from Brooklyn Bridge Park's Pier 6 on Saturdays, Sundays and Labor Day. There is a $2 round trip fare for adults and children over the age of 12. Seniors pay $1. The 10 a.m., 11 a.m. and 11:30 a.m. ferries from Manhattan are free on Saturdays and Sundays. They are also free on the 11 a.m. and 11:30 a.m. ferries from Brooklyn on Saturdays and Sundays.

For ferry schedules, click here.

Ongoing: The National Museum of the American Indian is open daily from 10 a.m. to 5 p.m., with free admission. It offers free films, docent-led tours of its exhibitions and tours of its premises, the Alexander Hamilton U.S. Custom House, designed by Cass Gilbert. The building, which was completed in 1907, is a National Historic Landmark and is listed on the National Register of Historic Places. One Bowling Green. Phone: (212) 514-3700. For the museum's calendar, click here.