Over a week old and not concerning Stuy Town, but concerning our councilman, Dan Garodnick and sleazy real estate.... Makes for incredible reading and an understanding of the links between real estate and politicians.
Some people in the real-estate industry have a message for Manhattan councilman Dan Garodnick, in whose hands the future growth of Midtown East resides: Slowing things down will not be good for your citywide aspirations.
Much more here:
http://www.capitalnewyork.com/article/politics/2013/10/8535298/real-estate-industry-links-midtown-east-garodnicks-political-future
34 comments:
I hope Goradnick doesn't cave. I'll never vote for him again if he does, not matter who he's running against or what he's running for. He needs to show some balls at this point in his political career. I really believe that the RE industry is a "mafia-like" operation. I am so sick of the way this country in general and New York City in particular, has become a dollarocracy, rather than a democracy.
This will be interesting to watch. As a bunch the City Council, Garodnick included, has done much for real estate here to the detriment of the soul of the city.
STR, when a sleazy cabal like the RE industry starts dictating to and even threatening the democratically elected politicians, who are supposed to be public servants who represent the best interests of their constituents, then we know we have a very, very serious problem in this city. The politicians are supposed to represent the people who elected them and should be telling the RE cabal which end is up. The corruption in New York relating to the RE cabal is horrifying and terrifying. Bloomberg has been the most corrupt and sleaziest mayor we have ever had. He has enabled unbridled greed and corruption to flourish in the RE industry. I hope Dan Goradnick can prove himself to be a man of honor and not be intimidated by this scum.
That's why these next few years will be very interesting to watch. If things don't get better for the middle class in NYC and for affordable housing, then we really have had it. Now is the time.
Dan "DONOTHING" Garodnick.
Thanks for Oval Cafe. Oval Rink, Farmers Market.
Please. More BS to sink ST/PVC further down the drain.
"That's why these next few years will be very interesting to watch. If things don't get better for the middle class in NYC and for affordable housing, then we really have had it. Now is the time."
And how are things going to get better for the middle class without new housing stock in New York City? The biggest impediment to the middle class are entrenched "Tenant Advocacy" groups such as the STPCVTA.
John Marsh and the usual company on the Facebook Page are lampooning an owner's plan to tear down a one story Hardware store on 23rd street in order to put up 20 stories of residential apartments, and then in the same breath you and he decry the plight of the middle class in New York City.
You know what the biggest threat to the middle class in NYC is? Rental Prices! You know how to bring down Rental Prices? DEVELOP MORE REAL ESTATE!.
You say you want to help the middle class, and then you oppose any plan to build new housing stock in New York. The cognitive dissonance of this group is astonishing.
"You say you want to help the middle class, and then you oppose any plan to build new housing stock in New York. The cognitive dissonance of this group is astonishing."
Gee! I wasn't aware that the condo building going up was going to be affordable, middle-class housing. I thought it was going to be another high priced unit building. Silly me. I always thought that condos and affordable rentals were mutually exclusive. Maybe some wealthy people will buy these high-priced condos and then rent them out at affordable rents to middle-class people? I doubt it.
"I hope Goradnick doesn't cave. I'll never vote for him again...
You mean you voted for him last week? I didn't. I don't even know what schlub was running against him but that's who got my vote.
I love it. You can screw me over one more time but next time...well, then maybe I won't vote for you. Nah...just kidding...
I wonder why nothing ever changes?
First of all, the hardware store is in a building that's more than one story, but that's not the point. It's unusual for a business that was displaced to return to the same location in a new building, but that's what happened with the building on the corner of 23rd and First. The little coffee shop that had been there for years is in the new building. Ditto for a small hair salon in the building on 19th and Third that had several stories added on and the facade redone.
I already knew that Vercesi/23rd Street had a new location in mind, so last week when I was in there, I asked why the deal fell through. The co-op building the hardware store had approached wanted more rent than the store could pay and still keep prices competitive. The cashier then made an interesting remark. She said that the newer, younger residents of the neighborhood tended not to shop in the smaller, local stores. I guess they're used to Home Depot or online shopping. This reminded me of the time back when the washers and dryers took coins that a young neighbor asked me where to get quarters. He probably never got farther into a bank than the ATM machine.
"Gee! I wasn't aware that the condo building going up was going to be affordable, middle-class housing"
What exactly does "Affordable Middle Class Housing" even mean? In my view you are saying 1 of 2 things, neither of which is practical in market with such a high demand, low supply and high price.
1) Build housing that is so cheap, crappy and so destitute, that despite the extreme lack of housing supply and high prices in surrounding units, people just wouldn't be willing to spend a normal market amount of money to live there. Something A La this blog: http://www.worstroom.com/
I think we can all agree that this is not a good solution for New York City. We don't want to intentionally build slums.
2) Build nice units at the quality of PCVST, and regulate their rent to be significantly below market rate. I'm guessing this is what you are referring to? Well it's not realistic. No Real Estate developer is going to spend millions upon millions of dollars to develop a product and then sell it at a loss. It's just not going to happen.
The only true way to bring Affordable Housing to NYC is to build enough supply to meet the demand. It's not rocket science. If you build more housing to meet the demand of renters, prices will come down. It's incredibly simple. Even if the new supply is on the higher end of the market, places that you or I can't afford, it still increases the overall supply and helps everyone along the Demand curve. Think of it this way:
Developers build a billion dollar glass condo sky scraper, and 400 billionaires move in. Those 400 billionaires are now not demanding existing higher end apartments. Those apartments now go to 400 millionaires, the 400 apartments of the millionaires now go to the 100 thousandaires and so on, all the way down the demand curve.
Stop supporting policies and politicians that stand in the way of development. It's good for us all.
>>Build nice units at the quality of PCVST, and regulate their rent to be significantly below market rate. I'm guessing this is what you are referring to? Well it's not realistic.<<
How about the option of keeping PCVST affordable as it once was, which at the time still provided a profit for the landlord? Of course, then the 5 billion dollar deal came along from your beloved real estate developers/holders and screwed up affordable housing here big time.
>>The only true way to bring Affordable Housing to NYC is to build enough supply to meet the demand.<<
Prices will not be going down with the raising of more high rise slivers. Everyone wants to be in NYC, the rich especially, and they'll buy up these exclusive rentals until there is a severe international economic collapse.
Two points in Response:
1) Keeping PCVST affordable has nothing to do with building new developments elsewhere. While I and many others would argue that Rent Stabilization greatly reduces housing supply, that is another argument for another time. I'm merely talking about the new developments outside of PCVST that you want Garodnick to oppose. NYC and it's middle class needs new housing.
2) Yes - The rich want to buy real estate in Manhattan, I'm not disagreeing with you. But why not build NEW real estate for them to buy, instead of having them buy up existing real estate and reduce housing supply further.
It's not like some rich person is saying to him/herself, I'm only going to buy a condo if it's on the 50th floor in a luxury glass building overlooking Central Park, and if I can't get that then I'm buying in Chicago instead. They are going to buy something in New York, and I rather it be something newly built, and not my, or someone else's future apartment.
The rich shouldn't be given the tax deductions Bloomberg has given them, that pisses me off too.
>>I'm merely talking about the new developments outside of PCVST that you want Garodnick to oppose. NYC and it's middle class needs new housing.<<
What new middle class housing has Garodnick promoted and that has been built? I'm aware of his city council votes to approve high-rises for the rich.
>>The rich want to buy real estate in Manhattan, I'm not disagreeing with you. But why not build NEW real estate for them to buy<<
Well, that's what is being built!
"What new middle class housing has Garodnick promoted and that has been built? I'm aware of his city council votes to approve high-rises for the rich."
None, because it's not economically feasible to build it. Did you read my above post?
Putz, The posts on the TA page are LAMENTING the loss of Vercesi Hardware, NOT LAMPOONING it.
A business that has served the neighborhood for the better part of a century, who's owners and families lived in the area, went to school with the residents, grew up with them, went to church etc. Can't you understand the concept of community, history and continuity ?
>>None, because it's not economically feasible to build it. Did you read my above post?<<
Huh? You are the one that brought up Garodnick and middle class housing:
>I'm merely talking about the new developments outside of PCVST that you want Garodnick to oppose. NYC and it's middle class needs new housing.<<
It seems that everything that's been built or converted in Manhattan is priced for the very high end of the market. Look at Sixth Avenue from 23rd Street to about 30th Street. Look at Gehry New York or conversions in FiDi. Look at the new builds in the West 30s and 40s. I saw the building on 19th and Third that had several stories added on to it on a TV real estate show. The agent showed the prospective client an apartment for more than $1 million and it had fire escapes! Please don't tell me that our 11,200 apartments are creating this situation.
Looks like the East Midtown plans are stalled for the moment. http://www.ny1.com/content/news/198623/plan-to-rezone-eastern-part-of-midtown-on-hold-after-talks-stall-between-mayor--council
Econ 101, Supply Sider: I doubt you are a New Yorker, as the complexity would not elude you to this degree. Let's move to Physics 101: How many more people do we squeeze in here, rich or no? Next, theology: Please see Anonymous' comment regarding community, family, continuity.
New York City Council rejects Midtown East rezoning
"... The lame duck Bloomberg administration scrambled to find last-ditch council votes but failed. City Council Speaker Christine Quinn and councilman Daniel Garodnick, who represents the neighborhood, released a statement late Tuesday saying East Midtown should be rezoned "but only when we can do so properly..."
Bloomberg got cut out. The rezoning of Midtown East will eventually happen, but it'll happen the way DeBlasio and Garodnick and the City Council want it to happen.
A sad fact of Manhattan (most of NYC) is that when you add the cost of construction (union) to the cost of land there is no possibility of developing 'affordable housing'. This is a FACT. A sad fact but a fact.
In order to develop 'affordable housing' there is a need for government subsidy.
My thought is that Garodnik can have a HUGE impact on affordable development. A large negotiating point of the east side rezoning is the increased air rights issue (FAR recalculation).
(1) Garodnik can hold out and not approve the current plan. He can renegotiate the plan so that it includes an allocation of air rights to developers building 'work-force' housing. The price for the air rights will be negligible but the importance is not what the City makes for the air rights but rather the value of increasing affordable housing stock.
(2) Garodnik has to veto on the grounds that the City will sell the open-market air-rights at $250/ft. That's well below market value for them. Recommendation: Auction off a certain amount of the rights on an annual basis at a minimum opening bid. At the same time, release 'free' air rights to the developers whose plans include the creation of the greatest number of new affordable housing units.
The City and State must incentivize developers to construct new affordable units. The math does not work unless it is subsidized. What I'd hope for, though, is that the subsidy remain in perpetuity with the unit rather than the current existing sunsets (developer timeline) and the current allowable increases after vacancy (affordability directed at tenant rather than unit).
Rambling remarks, sorry...
I hate/despise "air rights." These "rights" are simply a way to get over zoning regulations and the instrument used to build monster sky-high towers that are destroying the city.
This ugly piece of crap that's in our neighborhood (relatively) is the result of "air-rights":
http://nyc-architecture.com/wp-content/uploads/2011/06/110616-MADISON-06.jpg
"A sad fact of Manhattan (most of NYC) is that when you add the cost of construction (union) to the cost of land there is no possibility of developing 'affordable housing'. This is a FACT. A sad fact but a fact."
True, and that's another reason why anything existing should be preserved so that we have diversity. That was totally lost on Bloomberg.
Air rights: That's why we're getting these bizarre structures that cantilever over existing small buildings, such as on 22nd and Third, and there are other examples in our neighbothood.
STR: Totally agree with your stance on “air rights”. Here is more BS coming our way as chronicled from one the truly last bastions of journalistic integrity left in NYC, Juan Gonzalez of the NY Daily News:
“If Cuomo signs air rights measure, Hudson River Park develop may create flood risk, darken access”…..“Albany lawmakers approved the little-known bill in the dead of night last June, on the last day of the legislative session, and without a single public hearing.
http://www.nydailynews.com/life-style/real-estate/gonzalez-cuomo-oks-air-rights-hudson-river-park-dark-article-1.1514898
And this is coming to a boil as well: “NYCHA tenants file suit against lease plan to build luxury housing units.”
http://www.nydailynews.com/life-style/real-estate/nycha-tenants-file-suit-luxury-lease-plan-article-1.1514955
I see the RE industry trolls have been active on this tread. Regarding all of the future and current housing development that is going on in the EV such as 14th street between A&B, the former Mary Help of Christians site, etc., here was a comment at the EV Grieve blog that says it all regarding that new construction of this cheaply made and horrific looking housing stock:
“So, no, people like most of us won't be living there - it will be like my building is rapidly becoming - a combination of massively over paid Wall St tools in their late 20s or trust-funded, family-backed people in their early 20s.” Add students and Russian billionaires to that mix and there you have it. Bloomturd’s vision of Manhattan and New York City as a luxury “brand”.
Midtown East Rezoning Denied by City Council
It's very convenient to justify the positions of those commenting on this page and others, when you label all young people either Overpaid Wall Street Tools, Trust Funders, or Students (who for some reason shouldn't be allowed to live in NYC)
What you all refuse to admit is that 95% of the young people around you are middle class, making very average salaries, and don't work on Wall Street.
“when you label all young people either Overpaid Wall Street Tools, Trust Funders, or Students (who for some reason shouldn't be allowed to live in NYC)”. I had to respond to this. The quote I posted from the EV Grieve blog is to show that anyone BUT young professionals or students (who triple and quadruple up) cannot afford to live here anymore. This is due to the insanity of the Manhattan Real Estate Lobby, who you obviously work for. Have you noticed in the EV that there are hardly any families or children who live on Ave A or Ave B, the only children you see are from the NYCHA projects on C&D. Or as a millennial proclaimed on the TA FB page that Manhattan should only be for 20/30 something professionals. A community is healthy only when it is diverse. That should include couples, families, singles, some students, and the elderly. Not a 95% Woo Hoo dorm. PCVST is rapidly becoming a non-diverse community like the EV, like the LES, like Gramercy, like Murray Hill, etc. “making very average salaries” Yes while being heavily funded by their parents which is the case. Sorry, that’s the reality, it’s been well documented at various news sites including the NY Times. On page 362-363 of Charles Bagli’s “Other Peoples’ Money”, go to Noah’s Nielsen’s quote and then read the New York Magazine article about NYU, “The School That Ate New York.” I have 4 NYU Bros below me and they are truly the flower of their generation. BTW, do you live here? Anyway, your king’s expiration date is coming soon and maybe, just maybe, things will change (with ruthless citizen vigilance) for the better
Even though New York City elected officials LOVE to pass laws which are counter to the public good, there is one law that even THEY can't fuck up: the law of supply and demand. Killing the creation of all housing will only make it more difficult to find affordable apartments. It is just a fact. Sorry you don't like facts.
"I have 4 NYU Bros below me"
Illegal, as we know. You should report the situation to 311.
"Killing the creation of all housing will only make it more difficult to find affordable apartments. "
This is true. BUT... what is also true is that affordable housing development in NYC requires subsidy from the state or city.
There is a HUGE demand for affordable housing. But barely any new supply in the pipeline. So free market supply-demand theory is not in balance.
The cost to Supply exceeds the ability of Demand to pay. When that happens, no matter what the demand, supply is not generated.
The new T&V has an article saying that CW is recarpeting and painting all the hallways in the the project. They said it would take 2 years to finish all hallways. We've been waiting for a sale for how long now? And now another 2 years? I know people in the faux R/S apt's who can barely hold out any longer waiting for a conversion (because of the ridiculous rents they're paying). I wonder if anyone on the legal team or financial advisory team bothered to inquire as to whether or not CW had any plans to ever sell. It's comical to think of all the TA meeting we had articulating just exactly how this "conversion" will take place. How it will be a condo as opposed to coop etc. The only problem is the property isn't for sale. Of course, perhaps buying into this open sewer wouldn't have been a wise investment anyway. Who knows.
If CW wants to own this place--and they don't own it now--they'll have to make the bondholders whole to the tune of about $3.4 billion. While they're diddling around, they can milk it for management fees in addition to what they're getting as debt servicers. It's a sweet deal. Then they put this place on their résumé when they move on to the next, undoubtedly smaller deal.
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