Co-op City Times 11/24/12

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Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2012 Co-op City Times

Vol. 47 No. 47

Saturday, November 24, 2012

First annual College and Career Fair

Co-op City’s first annual College and Career Fair, the brainchild of Board Director Evelyn Turner, was held on Saturday, Nov. 17 in the Dreiser Auditorium offering parents and children of the community a wealth of resources and information to prepare for college and successful careers. Above, students inquire about Howard University in Washington, DC, one of the institutions of higher learning that was represented at the event. (See page 3 for more photos).

City Councilman-elect Andy King: Community empowerment through community participation BY BILL STUTTIG Newly elected City Council representative Andy King said this week that his priority as the community’s new City Council representative will be to increase community involvement in the policies and projects of his office and with that in mind, one of his first orders of business is to find a suitable location within Co-op City to set up a new district office here. “I know people don’t like to travel from

section to section that much if they can avoid it, so I am looking for the best possible central location to serve Co-op City residents,” said King this week as he continues preparations to begin serving the entire 12th Council District as its new City Council representative in the coming weeks. On Election Day, King was elected to the seat that was vacated by former City

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HUD/Wells Fargo mortgage loan scheduled to close Nov. 28 BY JIM ROBERTS A firm closing date of Nov. 28 has been set to officially complete the historic HUD/Wells Fargo mortgage refinancing that will save Co-op City shareholders millions of dollars in interest payments. An official from the federal Housing and Urban Development (HUD) agency informed Riverbay management this week that the closing of the $621.5 million mortgage is scheduled to take place this coming Wednesday, Nov. 28, at the HUD regional office in lower Manhattan. The interest rate for the new mortgage payments was locked in last week at an effective cost of 2.9%, which includes a 2.4% interest rate on the principal and a mortgage insurance premium and fees which add another 0.5%. Riverbay paid a non-refundable $3 million fee when the interest rate was locked in last week. That money will be credited toward the cost of the mortgage when the deal is completed, but would be forfeited if the mortgage doesn’t close. That guaranteed payment cost rate of 2.9% will be in place for the entire 35year life of the new Wells Fargo mortgage, eliminating the possibility of Co-op City having to pay higher rates in the future if interest rates in general rise. Under the existing New York Community Bank mortgage, which will be replaced by the new Wells Fargo mortgage, Riverbay pays $38.9 million

on an annual basis for the mortgage. The current NYCB interest rate is 5.75% and would have increased to 6% in July 2013, then to 6.25% in 2016 and 6.5% in July 2021. The scheduled interest rate increases would have pushed the mortgage costs higher in future years. The new Wells Fargo mortgage will cost approximately $29.45 million annually at the 2.9% mortgage cost. When discussions began concerning refinancing the existing loan, NYCB provided Riverbay with a discounted prepayment premium if the NYCB loan was refinanced before Sept. 15. That deadline was extended until Oct. 31 while the complex, year-long negotiations among Wells Fargo, HUD and Riverbay management continued earlier this year. The Riverbay Board of Directors accepted NYCB’s proposal that in return for extending the deadline, NYCB will receive an additional 1% prepayment premium, or $5.45 million. If the negotiations are not successful and the loan isn’t refinanced with Wells Fargo, the extra prepayment premium would not be paid to NYCB. That Oct. 31 deadline was then extended until Nov. 30 at no additional cost. The deal now scheduled to close on Nov. 28 marks the culmination of an extensive three-year effort led by Herbert (Continued on page 4)

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Riverbay to seek court order to stop noisy demonstrations BY JIM ROBERTS Local 78 asbestos workers, who have an ongoing dispute with a local contractor should not be the disrupting daily life of Co-op City residents with their noisy demonstrations, according to Riverbay management. The union is protesting what they say is CAC of New York’s failure to pay wages at other job sites, not at Co-op

City, but Local 78 extended their protests to Co-op City because CAC has the asbestos abatement contract here. Riverbay General Manager Vernon Cooper said this week that attorneys for Riverbay will seek a court order to stop the protestors from demonstrating in Co-op City since CAC is no longer working in the (Continued on page 4

Putting the giving into Thanksgiving…Board member and Black Forum Food Pantry Director Tony Illis (seated, center) is joined by volunteers Ina Griffiths and Ken Graham, and Riverbay Board President Helen Atkins in giving away a limited amount of turkeys to Co-op City residents in need on the day before Thanksgiving this past Wednesday. Illis said, “Many are not as fortunate as others during this time and other times and hopefully, despite this, some of those who are struggling can still enjoy a holiday meal and the Thanksgiving traditions with their families.” Illis also thanked Pepsi for donating the beverages that were handed out along with the holiday meals. Photo by Bill Stuttig

We wish our readers a very happy and safe Thanksgiving weekend.


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