The city wants to develop the land that currently is the site of a gas station on 110th Street and FDB but the owners of that property has filed a lawsuit to block the sale. Apparently the gas station proprietors originally purchased the property facing Central Park back in 1981 when the neighborhood was undesirable because of rampant crime and the community renewal plan reportedly stipulated that the city could repurchase the plot back by 2008. Since that date has passed, the owners now want the government to back off on having corner built up as a new residential and commercial development. The government denies the claim that there was an expiration date for buying back the land in South Harlem and thus everyone is going to court. Read more in the New York Post:
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Looked up the deed on acris. I would assume this is a play to get more cash out of the deal. I included relevant portions and looked up the indexes and calculated (a). I would assume the major gripe is that the city would be buying back the land for less than a million and it is obviously worth significantly more. I bet there are a lot of 16 year old contracts people would like to get a redo on. In the event of acquisition by the City by condemnation orotherwise of any part or portion of the premises lying within the bed of anystreet, avenue, parkway, expressway, park, public place or catchbasin as shownon the present City Map, Grantee and its heirs or successors and assigns shallonly be entitled, as compensation for such acquisition by the City, to theamount of One ($1.00) Dollar, and shall not be entitled to compensation for anybuildings or structures erected on the Premises which may lie within the bed orlines of any street, avenue, parkway, expressway, park, public place orcatchbasin so laid out and acquired. This covenant shall run with the land and shall continue until the CityMap is amended or changed to eliminate from within the bed or lines of anystreet, aveneue, parkway, expressway, park, public place or catchbasin, any partor portion of the Premises and no longer. The City shall have the right, for a period of twenty yearsfrom the date hereof, upon notice to Grantee (or its successor or assign) toacquire the Premises, for an amount equal to (a) the Purchase Price paid byGrantee, plus an amount equal to the product obtained by multiplying thepurchase price paid by Grantee by the percentage increase (If any) in theCurrent Index (defined below) over the Base CPI (defined below), plus (b)Grantee’s costs of constructing the Improvements (including without limitationthe testing for and remediation of Hazardous Substances on the Premises), andsuch other capital improvements as may have been made to the Premised, subjectto depreciation on a level basis over a twenty-year period from the time anysuch capital improvement was placed in service, plus (c) appraisal costs paidby Grantee in connection with the Closing and closing costs paid by Grantee orits successor or assign in connection with the conveyance under this deed andthe acquisition of title by the City. The foregoing acquisition right is supplemental to and not in substitutionfor the City’s power and authority to acquire title to the Premises pursuant tothe New York Sate Eminent Domain Procedure Law or any successor statue. If the right of the City to acquire the Premises is notexercised within twenty (20) years from the date of the Deed, then suchacquisition right shall lapse, and the City and Grantor shall provide such furtherreasonable assurance as Grantee or its successors or assigns may request thatsuch acquisition right has lapsed. “Base Index” means the Price Index for the calendar month inwhich the date first set forth above occurs “Current Index” means the Price Index for the calendar monthimmediately preceding the calendar month in which the date first set forthabove occurs. “Price Index” means the Consumer Price Index for all UrbanConsumers published by the Bureau of Labor Statistics of the United StatesDepartment of Labor for the New York-Northeastern New Jersey Area, all items(1982-1984=100), or any successor index thereto. Deed date: July 24 1996 Purchase Price: $366,500 Current Index (July 2012) 252.016, Base Index (July 1996)=166.7,Curr/Base=1.511794, P*C/B=$554,072
ReplyDeleteLooked up the deed on acris. I would assume this is a play to get more cash out of the deal. I included relevant portions and looked up the indexes and calculated (a). I would assume the major gripe is that the city would be buying back the land for less than a million and it is obviously worth significantly more. I bet there are a lot of 16 year old contracts people would like to get a redo on. In the event of acquisition by the City by condemnation orotherwise of any part or portion of the premises lying within the bed of anystreet, avenue, parkway, expressway, park, public place or catchbasin as shownon the present City Map, Grantee and its heirs or successors and assigns shallonly be entitled, as compensation for such acquisition by the City, to theamount of One ($1.00) Dollar, and shall not be entitled to compensation for anybuildings or structures erected on the Premises which may lie within the bed orlines of any street, avenue, parkway, expressway, park, public place orcatchbasin so laid out and acquired. This covenant shall run with the land and shall continue until the CityMap is amended or changed to eliminate from within the bed or lines of anystreet, aveneue, parkway, expressway, park, public place or catchbasin, any partor portion of the Premises and no longer. The City shall have the right, for a period of twenty yearsfrom the date hereof, upon notice to Grantee (or its successor or assign) toacquire the Premises, for an amount equal to (a) the Purchase Price paid byGrantee, plus an amount equal to the product obtained by multiplying thepurchase price paid by Grantee by the percentage increase (If any) in theCurrent Index (defined below) over the Base CPI (defined below), plus (b)Grantee’s costs of constructing the Improvements (including without limitationthe testing for and remediation of Hazardous Substances on the Premises), andsuch other capital improvements as may have been made to the Premised, subjectto depreciation on a level basis over a twenty-year period from the time anysuch capital improvement was placed in service, plus (c) appraisal costs paidby Grantee in connection with the Closing and closing costs paid by Grantee orits successor or assign in connection with the conveyance under this deed andthe acquisition of title by the City. The foregoing acquisition right is supplemental to and not in substitutionfor the City’s power and authority to acquire title to the Premises pursuant tothe New York Sate Eminent Domain Procedure Law or any successor statue. If the right of the City to acquire the Premises is notexercised within twenty (20) years from the date of the Deed, then suchacquisition right shall lapse, and the City and Grantor shall provide such furtherreasonable assurance as Grantee or its successors or assigns may request thatsuch acquisition right has lapsed. “Base Index” means the Price Index for the calendar month inwhich the date first set forth above occurs “Current Index” means the Price Index for the calendar monthimmediately preceding the calendar month in which the date first set forthabove occurs. “Price Index” means the Consumer Price Index for all UrbanConsumers published by the Bureau of Labor Statistics of the United StatesDepartment of Labor for the New York-Northeastern New Jersey Area, all items(1982-1984=100), or any successor index thereto. Deed date: July 24 1996 Purchase Price: $366,500 Current Index (July 2012) 252.016, Base Index (July 1996)=166.7,Curr/Base=1.511794, P*C/B=$554,072
ReplyDeleteUlysses -- I emailed you about this gas station on August 18, 2010 with all of the relevant information (including a copy of the deed). I also emailed various government officials on the off chance that they didn't know about this, and to point out that they'd be certifiably insane not to exercise the option contained therein.
ReplyDeleteA plain reading of the contract language shows that the city has a 20-year option to repurchase, and that the agreement was dated from July of 1996 (which means they have until 2016).
I can understand that the private owner is not exactly thrilled about this, but it's hard to see how they are anything other than SOL under these circumstances...