Res 1558-2017

By Council Members Greenfield and Salamanca WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council on May 19, 2017 its request dated May 15, 2017 that the Council approve an urban development action area project pursuant to Article 16 of the General Municipal Law for the property located at 1461 Park Avenue (Block 1635, Lot 1) (the "Project") as follows: 1. Find that the present status of the Disposition Area tends to impair or arrest the sound growth and development of the municipality and that the proposed Urban Development Action Area Project is consistent with the policy and purposes of Section 691 of the General Municipal Law; 2. Approve the designation of the Disposition Area as an Urban Development Action Area pursuant to Section 693 of the General Municipal Law; and 3. Approve the project as an Urban Development Action Area Project pursuant to Section 694 of the General Municipal Law; and approve an exemption of the Project from real property taxes pursuant to Section 577 of Article XI of the Private Housing Finance Law (the "Tax Exemption"), for the property located at 1461 Park Avenue (Block 1635, Lot 1), Community District No. 11, Borough of Manhattan, Council District No. 8 (the "Disposition Area"); WHEREAS, the application is related to previously approved City Council Resolution No. 1320; L.U. No. 519 of November 29, 2016; WHEREAS, upon due notice, the Council held a public hearing on the Project on May 30, 2017; WHEREAS, the Council has considered the land use, environmental and financial implications and other policy issues relating to the Project; RESOLVED: The Council finds that the present status of the Disposition Area tends to impair or arrest the sound growth and development of the municipality and that the proposed Urban Development Action Area Project is consistent with the policy and purposes of Section 691 of the General Municipal Law. The Council approves the designation of the Disposition Area as an Urban Development Action Area pursuant to Section 693 of the General Municipal Law. The Council approves the project as an Urban Development Action Area Project pursuant to Section 694 of the General Municipal Law. The Project shall be disposed of and developed upon the terms and conditions in the Project Summary that HPD has submitted to the Council, a copy of which is attached hereto. Pursuant to Section 577 of the Private Housing Finance Law the Council approves the exemption of the Exemption Area from real property taxes as follows: 1. For the purposes hereof, the following terms shall have the following meanings: a) "Effective Date" shall mean the later of (i) the date of conveyance of the Exemption Area to the HDFC, and (ii) the date that HPD, HDC, and the New Owner enter into the Regulatory Agreement in their respective sole discretion. b) "Exemption" shall mean the exemption from real property taxation provided hereunder. c) "Exemption Area" shall mean the real property located on the Tax Map of the City of New York in the Borough of Manhattan, City and State of New York, identified as Block 1635, Lots 1, 7, and 16. d) "Expiration Date" shall mean the earlier to occur of (i) a date which is forty (40) years from the Effective Date, (ii) the date of the expiration or termination of the Regulatory Agreement, or (iii) the date upon which the Exemption Area ceases to be owned or leased by either a housing development fund company or an entity wholly controlled by a housing development fund company. e) "HDC" shall mean New York City Housing Development Corporation. f) "HDFC" shall mean Lex Gardens II TP4 Housing Development Fund Company, Inc. g) "HPD" shall mean the Department of Housing Preservation and Development of the City of New York. h) "LLC" shall mean Lexington Gardens Owners LLC or an affiliate. i) "New Owner" shall mean the HDFC and the LLC or any future owner of the Exemption Area. j) "Regulatory Agreement" shall mean the regulatory agreement between HPD, HDC, and the New Owner establishing certain controls upon the operation of the Exemption Area during the term of the Exemption. 2. All of the value of the property in the Exemption Area, including both the land and any improvements (excluding those portions, if any devoted to business, commercial, or community facility use, except for any community facility use or parking use required by and on the terms set forth in the Regulatory Agreement) shall be exempt from real property taxation, other than assessments for local improvements, for a period commencing upon the Effective Date and terminating upon Expiration Date. 3. (a) Notwithstanding any provision hereof to the contrary, the Exemption shall terminate if HPD determines at any time that (i) the Exemption Area is not being operated in accordance with the requirements of Article XI of the Private Housing Finance Law, (ii) the Exemption Area is not being operated in accordance with the requirements of the Regulatory Agreement, (iii) the Exemption Area is not being operated in accordance with the requirements of any other agreement with, or for the benefit of, the City of New York, (iv) the Exemption Area is conveyed to a new owner without the prior written consent of HPD, or (v) the demolition or construction of any private or multiple dwelling on the Exemption Area has commenced without the prior written consent of HPD. HPD shall deliver written notice of any such determination to the New Owner and all mortgagees of record, which notice shall provide for an opportunity to cure of not less than sixty (60) days. If the noncompliance specified in such notice is not cured within the time period specified therein, the Exemption shall prospectively terminate. (b) Nothing herein shall entitle the New Owner to a refund of any real property taxes which accrued and were paid with respect to the Exemption Area prior to the Effective Date. (c) The Exemption shall not apply to any building constructed on the Exemption Area which does not have a permanent or temporary certificate of occupancy by December 31, 2021, as such date may be extended in writing by HPD. 4. In consideration of the Exemption, the New Owner (i) shall execute and record the Regulatory Agreement, and (ii) for so long as the Exemption shall remain in effect, shall waive the benefits of any additional or concurrent exemption from or abatement of real property taxation which may be authorized under any existing or future local, state, or federal law, rule, or regulation. Adopted. Office of the City Clerk, } The City of New York, } ss.: I hereby certify that the foregoing is a true copy of a Resolution passed by The Council of The City of New York on June 6, 2017, on file in this office. ........................................ City Clerk, Clerk of The Council Page 4 of 4 20175427 HAM Res. No. 1558 (L.U. No. 673)