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Relationship between new development and existing Parkchester complex
2:52:33
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Council Member Farías seeks clarification on the connection between the new development and the existing Parkchester condo complex, particularly regarding finances and capital needs. The representative explains the separation between the projects.
- There is no direct financial impact on the existing condo complex from the new development
- The condominium association owns a separate development parcel (steam generation plant) within the rezoning area
- The existing condo complex continues to balance common charges with capital improvement needs
- There is no legal or financial connection between the new development properties and the existing associations, except for some agreements related to the heating plant property
Amanda Farías
2:52:33
Okay.
2:52:34
And either 1 of you can answer, but can you further explain the connection, if any, between the new development and the existing condo complex, would there be any effect to the purchaser condo's finances and any existing capital needs?
UNKNOWN
2:52:47
Well, I think that there's not necessarily a direct impact to their as a result of these 2 develop
Amanda Farías
2:52:56
Right.
2:52:57
Well, that's what I would like to explain.
2:52:58
I I think
UNKNOWN
2:52:59
there is a larger yeah.
UNKNOWN
2:53:00
There is a
UNKNOWN
2:53:01
3rd development parcel that we're not discussing that the condominium homes.
2:53:04
The steam generation plan is within this rezoning Sure.
2:53:08
And it is a potential development parcel that the condominium owns.
2:53:12
So the condominium ultimately, you know, it the plant's 80 years old.
2:53:17
They we invest a significant amount of money and maintain ning it.
2:53:21
It runs, you know, efficiently.
2:53:23
But at the end of the day, the boilers are 80 years old.
2:53:25
Well maintained.
Ken Fisher
2:53:26
You
UNKNOWN
2:53:27
know, if we had modern guardrailers, we'd have to replaced them 40 years ago, probably.
2:53:31
But the reality is that at some point in time, and we've done studies at the, you know, through the associations on how we would upgrade the heating plant for the Greater Park Chester Community, which serves 12271 apartments.
2:53:46
Right?
2:53:47
And so at at the time that that happens, it could, you know, the Parkchester community could have the benefit of the value created on that parcel.
Amanda Farías
2:53:58
Okay.
2:53:59
Great.
2:53:59
I think sometimes there's a bit of confusion.
2:54:01
I know we've had a lot of these discussions around this where people feel as if some of the larger capital needs that we have on the general campus of purchaser, how are not necessarily being met, and folks can't.
2:54:17
They they cannot comprehend how we can create new development while still having some of the more complicated cap capital issues that stakeholders and tenants are living with.
2:54:31
And so if you can I just wanna make sure for the record that there's like a distinction between what a new application actually means in terms of your operating expenses or what the like, the ports are paying into versus however we can help to give that distinction?
2:54:47
Okay.
UNKNOWN
2:54:47
There there's really no connectivity when associations were formed in in the seventies early eighties.
2:54:55
The New York Attorney General approved those offering plans.
2:54:58
Units were sold through those offering plans and 2 different offering plans.
2:55:02
And we own as PPC, we own the unsold units that didn't that didn't sell.
2:55:08
We operate those as rental units within the community.
2:55:11
We pay our common charges just like like everybody else.
2:55:16
I'm not I'm speaking as an owner of condominium units at Parkchester.
2:55:21
Although I've been on the boards for 25 years, I don't think it's appropriate for me to speak for the board here, you know, because I haven't asked permission for that, but I'll speak as as as an owner of units and and and that role.
2:55:34
The condominium is always balancing, you know, you know, what they can pay through common charges to do capital improvement work.
2:55:44
They spend upwards of close to $20, 000, 000 a year on capital items every year.
2:55:51
And that's a reoccurring item.
2:55:53
We pay our share of that.
2:55:55
We had some meaningful common charge increases a number of years ago because we embarked on an aggressive capital improvement program and that continues.
2:56:05
We as sponsor separately within our own units invest when we do a renovation with the new led laws and all the other things that have, you know, we put $28, 000 a unit into upgrading our units with and and complying with the various regulations within those units.
2:56:22
And so we're constantly doing that as well within within the units that we individually, individually owned.
2:56:30
That said, there is no connection between these properties other than the heating plant property.
2:56:36
There's no connection between these properties and the associations.
2:56:40
There's no legal connection and there's no financial connection.
2:56:43
There's no financial obligation for the condominiums to anything here and the same with us.
2:56:50
You know, there is a there are some agreements between the condominium association and the sponsor as it relates to these parcels, but those are acts agreements and things, but they're not they're not there's no financial because it's they serve both they work in both directions.