BPCA and 11 Condos Reach Tentative Deal on Ground Rents

A year of negotiations between the Battery Park City Authority and a committee of representatives from the 11 original condominiums in the south neighborhood has yielded a tentative, 30-year agreement to roll back drastic increases in ground rent for apartment owners that would have started next year and continued for decades. The accord, brokered by New York State Assembly Speaker Sheldon Silver, will save condo owners some $280 million over the next three decades.

“This has been going on for more than a year,” explained Rector Place condo owner Anthony Notaro, who was a member of the negotiating committee representing the 11 buildings. “We went through two different administrations at the Authority,” he added, in a reference to the change in both the 2010 change in both the BPCA’s board chairmanship and its presidency. He noted that the Authority, “always acted in good faith. They bargained fairly, but very hard. So when we finally reached a point where we felt like we couldn’t give any more, we turned to Speaker Silver. He weighed in with the BPCA and in a matter of weeks, we had an agreement.” Mr. Notaro continued that, “the Authority will still get increases in ground rent, so this is not a windfall or a giveaway. Everybody will pay more than they did before, for every year, but the increases will be less steep than they would have been.” He also observed, “the biggest benefit comes in 2027, when we roll back what would have been a catastrophic increase for everybody.”

In a statement, Mr. Silver said, “this agreement will protect Battery Park City residents from staggering increases that would have caused crushing financial burdens during a time of economic difficulty. By restructuring this payment plan, we will be able to keep more middle-class families in their homes and maintain Battery Park City as the world-class community that it is.”

Full Article via The Broadsheet Daily

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