Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2011 Co-op City Times
Vol. 46 No. 25
Saturday, June 18, 2011
Board approves mortgage refinancing with NYCB; talks with HUD continue BY JIM ROBERTS The refinancing of Co-op City’s mortgage with New York Community Bank was completed this week with the Riverbay Board voting 13-2 to approve the measure which will provide new money to continue capital projects and strengthen the community’s balance sheet. The deal with NYCB also leaves open the possibility of a replacement loan that could reduce interest charges by millions of dollars over time if the federal Housing and Urban Development (HUD) agency agrees to guarantee that proposed loan, which is under discussion with HUD by a different bank, Wells Fargo. Final approval of the new $555 million refinancing mortgage with NYCB was overwhelming approved by the Board at a meeting on Tuesday, June 14, which was attended by high ranking officials from New York Community Bank, as well as Wells Fargo, HUD specialists from Washington and Deputy Commissioner Richmond McCurnin of the NewYork State Division of Homes and Community Renewal, Co-op City’s supervising state agency. After lengthy discussions and questions and answers, the majority of the Board members agreed to the new mortgage refinancing and the closing documents were signed as directed by Resolution 11-45 on Wednesday (see page 5 for the resolution). Voting in favor of Resolution 11-45 were: Board President Helen Atkins, and Directors
Eleanor Bailey, Bill Gordon, Leah Graham, Tony Illis, Daryl Johnson, Othelia Jones, Rev. Calvin Owens, Eleanor Santiago, Al Shapiro, Raymond Tirado and Khalil AbdulWahhab. The only two no votes were cast by Directors Bernard Cylich and Andrea Leslie. Under the new mortgage with NYCB, Riverbay paid off its existing $475 million debt and replaced it with a $555 million mortgage. The interest rate on the new mortgage will start at 5 3/4% for the first two years and then increase to 6% in the third through fifth years of the term. Interest increases to 6.25% in years 6 through 10, and then to 6.50% in years 11 through 15. Riverbay paid an interest rate of 6.2% under the old mortgage, and that interest rate was scheduled to increase to 6.7% in October, 2014. The previous Riverbay Board of Directors approved the terms of the refinanced mortgage in April when they approved Resolution #11-37. Because the new loan adds $80 million in new debt and will be for a shorter term, annual interest payments will increase from $32.5 million under the previous mortgage up to $38.515 million a year in the new mortgage. Some of the new money will be used to help pay for $18 million in ongoing capital projects in Co-op City, including new windows and doors for residents and balcony (Continued on page 2)
Management Forum in Dreiser, June 28 A Management Forum to inform shareholders of the community’s refinancing with New York Community Bank and give an updated status report of capital projects will be held on Tuesday, June 28, 7 p.m., in Dreiser Auditorium A, B & C.
Gateway Garden … Workers and supervisors from the Buildings and Grounds and Construction Departments joined with General Manager Vernon Cooper in celebrating the completion of the beautiful new entrance to the Bartow Shopping Center earlier this week. Decorative brick work planters and thousands of flowers and shrubs beautify the entire length of the front of the shopping center. Cooper said the finished product is due to the planning and hard work of the workers and the supervisors. “For many visitors, the front of the Bartow Shopping Center is the entrance way to Co-op City and gives them their first impression of this community. For that reason, I always wanted to better organize and beautify this area. All I had to do was say to Construction and Buildings and Grounds what I had in mind and the planners and workers from these departments really took it to the next level and created a beautiful planter and garden which will add to the curb appeal of the shopping center and its many merchants and also the community as a whole.” Photo by Bill Stuttig
25¢
Putting the community first I want to first pay off New York President’s Message say how grateful I Community Bank am for being electand refinance at a ed for another term lower interest rate. President as President of This will, if it ever Riverbay Corporation and also report how comes to pass, potentially allow us to save pleased I am at how the Board put aside millions of dollars in interest over the life all differences to consider and vote this of the loan. week to proceed with a refinancing with My fellow Directors acted as a responNew York Community Bank. The conse- sible body this week, with many asking quences of not approving this would have insightful and legitimate questions to fully been devastating. I must truly commend understand the situation and what was at my fellow Board members for thinking of stake. We were in a classic situation where the community first and what is best for the a bird in the hand was better than two in the shareholders of Co-op City before making bush, and I'm certainly glad the majority of this crucial vote. the Board was able to see this and vote The final approval of this new refi- accordingly. nancing of our mortgage with New York Management has been pursing a HUD Community Bank will allow us to contin- loan for close to three years, but was told ue with capital projects, such as complet- frankly that HUD requires a debt service ing the window replacement program reserve fund of $65 million, which possiand balcony work required by New York bly could be negotiated down to $35 milCity's Local Law 11, as well as $25 mil- lion, and none of that money can be fundlion to restore reserve funds and $11.7 ed by a loan. Just consider this, if we had million plus to pay off the astronomical $65 million, we could use that money for increase in water bills. capital projects and such and wouldn't need Perhaps one of the most important such a loan. Now, this may be resolved developments was the fact that if a future somehow with Wells Fargo and HUD. At deal can be reached with Wells Fargo the moment, though, the clock was ticking where HUD will agree to guarantee the and we couldn’t afford to wait. Therefore, proposed mortgage being offered by Wells Fargo, Co-op City will be able to (Continued on page 2)
Helen Atkins
Domestic Hot and Cold Water Shut-Down …for Buildings 2, 3, 6-8 & 23-25 starting Tuesday, June 21. See page 2.
Agency representatives report improved conditions and services for Co-op City BY BILL STUTTIG Proving the old adage that a squeaky wheel gets the grease, representatives from city and state agencies responsible for property conditions and services in and around Co-op City this week reported some progress in correcting some of the problems that were brought to their attention six weeks ago. In the follow-up to a previous meeting held by Riverbay General Manager Vernon Cooper on April 27th at which representatives from the city’s Departments of Sanitation, Transportation, Parks and Environmental Protection were given photos documenting sloppy, unkempt and sometimes dangerous conditions in and around properties under the jurisdiction of the city, the same representatives reported back to Cooper and operational department heads and Riverbay Board Directors this past Monday, June 13, to say that some of the reported conditions have been corrected and others are scheduled to be corrected in the coming weeks. Following the meeting, General Manager Cooper said that although he was
satisfied to a point with some of the progress reported, much of which he noticed being done days prior to Monday’s meeting, he remains frustrated with a lack of progress in certain other areas, specifically with the perpetually litter-strewn west side of Baychester Avenue and the failure of any agency to take responsibility for this area,
New York State Thruway Authority workers clear brush and weeds near the intersection of Baychester and Bartow Avenues on Tuesday. The day before, Riverbay met with various government agencies regarding the upkeep of government-controlled property surrounding the community. Photos by Jim Roberts
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