Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2012 Co-op City Times
Vol. 47 No. 40
Saturday, October 6, 2012
Power plant adds consultants to continue upgrades in operations
Upgrades in the operations at the Riverbay cogeneration Power Plant on Bartow Avenue are underway following a resolution by the Board of Directors in July. Photo by Jim Roberts
BY JIM ROBERTS Following through on a July resolution by the Riverbay Board of Directors to upgrade operations at the Co-op City cogeneration power plant, two power plant management consultants have been hired to lend their vast experience to the Riverbay staff. In his report last week updating
progress at the cogeneration plant, Riverbay’s ongoing cogeneration consultant Bill May reported that “the Operations and Management on the Cogen Facility has made consistent strides forward to the goal of improved availability, reliability, cost control and
Commitment letter from HUD expected this week BY JIM ROBERTS With an Oct. 31 deadline fast approaching, the key final commitment proposal from the federal government to guarantee Co-op City’s $621.5 million low interest mortgage refinancing deal was expected to be delivered this week. Riverbay Management was advised by Wells Fargo that the commitment letter from HUD would be received by Friday, Oct. 5. Once a commitment letter containing the terms of the loan is received from HUD, Riverbay Management, Riverbay’s legal counsel and the Riverbay Board of Directors will examine the document line by line to understand the specific requirements of the loan. Riverbay Management expects that further negotiations could be needed over several of the terms in the final proposal, leaving little time to meet the new Oct. 31 deadline. However, there is a hope that the agreement with the new low interest rates with Wells Fargo locked in could be in place as early as next week.
In an Oct. 3 email to Riverbay, Cathy Pharis of Wells Fargo wrote, “Please let us know if you have any comments as we move toward the all-important rate lock, hopefully middle of next week!!” The proposed $621.5 million mortgage refinancing loan, to be underwritten by Wells Fargo Bank and guaranteed by the federal Housing and Urban Development agency (HUD), will pay off the community’s existing $558 million mortgage debt with New York Community Bank and also provide $25 million for continuing capital projects work and add $40 million to Riverbay reserve funds and pay for bank fees and expenses. As of press time on Friday, the possibility of NYCB extending the Oct. 31 deadline or renegotiating the existing high interest rates had been ruled out. The Riverbay Board of Directors must vote to approve any final terms of a commitment letter before the interest rate in (Continued on page 2)
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Final phase of tree planting for north sector Greenway rescheduled for November 10th BY BILL STUTTIG For the second year in a row, dozens of volunteers from the community will join with volunteers from the American Express Corporation and the New York Restoration Project (NYRP) in planting hundreds of baby trees around the perimeter of the recently restored north sector Greenway. Originally, this event was scheduled to take place on Saturday, October 13, however, it has been rescheduled for Saturday, November 10. Riverbay Ombudsman Joe Boiko, who coordinated the donation of the trees from the New York Restoration Project and Mayor Michael Bloomberg’s Million Trees Initiative, said that able-bodied volunteers are needed to help with planting the trees around the perimeter of the new Greenway. This year’s volunteer tree planting will concentrate of the northern sections of the restored Greenway.
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Boiko said in a recent memo to Management that exactly 152 trees have been donated to Riverbay by the New York Restoration Project for this year’s round of planting. He added that this planting will be the last in the series of tree plantings conducted throughout the community in the last four years. “Once we complete the planting of trees this fall, we will have received nearly 1,800 trees through this program, an estimated cost savings to the corporation of 1.6 to two million dollars,” Boiko said. The final shipment of 152 trees will be planted over the course of the day on November 10. Last year, dozens of Co-op City residents and community leaders participated in the tree planting and it is hoped that even more will volunteer this year. To register, click on the Serve2Gether link in the “Happening Now” section of (Continued on page 4)
See Management’s response to the City News on page 6.
Riverbay open for business on Monday, Columbus Day Riverbay Corporation, including the administrative offices, will be open for business on Columbus Day, Monday, October 8. We wish everyone an enjoyable Columbus Day holiday weekend.
Second open Management Forum to again focus on Public Safety BY ROZAAN BOONE On Tuesday, October 16, at 7 p.m. in the Dreiser Auditorium, the second in the series of monthly open Management Forums will once again focus on the Co-op City Public Safety Department. The Public Safety Department was the subject at the first Management Forum held on September 11 in the Einstein Center and due to shareholders’ overwhelming response to the presentation, Management decided to repeat the program at this month’s open meeting which will be held in the Dreiser Auditorium. The series of public management forums is being held to explain the function of individual service departments within the Riverbay Corporation so as to familiarize shareholders with each office
and its operations. All of the forums will begin at 7 p.m., giving shareholders time to return home from work. “There are many positive aspects to Management holding monthly forums,” General Manager Vernon Cooper told the Co-op City Times last month. “First and foremost, we believe that the forums are an excellent way to get information to the community about how the various departments operate, what changes are taking place and what advances are being made that affect the residents of this community. In addition, the forums are designed to give cooperators an opportunity to ask questions and discuss issues or concerns that they feel are pertinent to the specific (Continued on page 2)