Res 0665-2018

By Council Members Salamanca and Kallos WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council on October 30, 2018 its request dated October 29, 2018 that the Council approve a new real property tax exemption pursuant to Section 577 of the Private Housing Finance Law (the "Tax Exemption Request") and termination of the prior exemption for property located on 79 lots, a copy of which is attached hereto as Schedule A, Community District Nos. 2, 3, 8, and 16, Borough of Brooklyn, Council District Nos. 33, 35, 36, 41, and 42 (the "Exemption Area"); WHEREAS, upon due notice, the Council held a public hearing on the Tax Exemption Request on December 3, 2018; and WHEREAS, the Council has considered the land use and financial implications and other policy issues relating to the Tax Exemption Request. RESOLVED: Pursuant to Section 577 of the Private Housing Finance Law, the Council approves an 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. "Company" shall mean JOE Central Brooklyn LLC or any other entity that acquires the beneficial interest in the Exemption Area with the prior written consent of HPD. b. Effective Date" shall mean the later of (i) the date of conveyance of the Exemption Area to the HDFC, or (ii) the date that HPD and the Owner enter into the Regulatory Agreement. c. "Exemption Area" shall mean the real property located in the Borough of Brooklyn, City and State of New York, on the Blocks and Lots on the Tax Map of the City of New York that are identified in Schedule A attached hereto. 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 by either a housing development fund company or an entity wholly controlled by a housing development fund company. e. "HDFC" shall mean SNA CB 2018 Housing Development Fund Company, Inc., BSRC CB 2018 Housing Development Fund Company, Inc., BSDC CB 2018 Housing Development Fund Company, Inc., and IMPACCT CB 2018 Housing Development Fund Company, Inc. or a housing development fund company that acquires the Exemption Area with the prior written consent of HPD. f. "HPD" shall mean shall mean the Department of Housing Preservation and Development of the City of New York. g. "J-51 Benefits" shall mean any tax benefits pursuant to Section 489 of the Real Property Tax Law which are in effect on the Effective Date. h. "New Exemption" shall mean the exemption from real property taxation provided hereunder with respect to the Exemption Area. i. "Owner" shall mean, collectively, the HDFC and the Company. j. "Prior Exemption" shall mean the exemption from real property taxation for a portion of the Exemption Area approved by the New York City Council on April 17, 2001 (Resolution No. 1852) and May 25, 2005 (Resolution No. 994), and the existing tax exemption for a portion of the Exemption Area pursuant to Section 420-c of the Real Property Tax Law. k. "Regulatory Agreement" shall mean the regulatory agreement between HPD and the Owner establishing certain controls upon the operation of the Exemption Area during the term of the New Exemption. 2. The Prior Exemption shall terminate with respect to the Exemption Area upon the Effective Date. 3. 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), shall be exempt from real property taxation, other than assessments for local improvements, for a period commencing upon the Effective Date and terminating upon the Expiration Date. 4. Notwithstanding any provision hereof to the contrary: a. The New 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) any interest in the Exemption Area is conveyed or transferred to a new owner without the prior written approval of HPD, or (v) the construction or demolition 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 Owner, all mortgagees of record, and, where there has been an unauthorized conveyance or transfer of any interest in the Exemption Area, to the new owner of such interest in the Exemption Area, 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 New Exemption shall prospectively terminate. b. The New Exemption shall apply to all land in the Exemption Area, but shall only apply to buildings on the Exemption Area that exist on the Effective Date. c. Nothing herein shall entitle the HDFC, the Owner, or any other person or entity to a refund of any real property taxes which accrued and were paid with respect to the Exemption Area prior to the Effective Date. d. All previous resolutions, if any, providing an exemption from or abatement of real property taxation with respect to the Exemption Area are hereby revoked as of the Effective Date. 5. In consideration of the New Exemption, the owner of the Exemption Area shall, for so long as the New Exemption shall remain in effect, 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. Notwithstanding the foregoing, (a) nothing herein shall prohibit the granting of any real property tax abatement pursuant to Sections 467-b or 467-c of the Real Property Tax Law to real property occupied by senior citizens or persons with disabilities, and (b) the J-51 Benefits shall remain in effect, but the New Exemption shall be reduced by the amount of such J-51 Benefits. 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 December 11, 2018, on file in this office. ........................................ City Clerk, Clerk of The Council JOE Central Brooklyn LLC.YR15.FY19 Schedule A Borough of Brooklyn Block Lot(s) Block Lot(s) 1155 70 3598 7 1530 1 3600 9 1762 69 3602 9 1786 1 and 3 3612 35 1791 7 3613 42 1794 52 3623 36 1795 52, 55, and 80 3624 58 1796 62 3625 35, 36, and 41 1797 7 3638 50 1799 30 3639 22 1801 14 3868 20 and 22 1805 1 and 27 1810 7 and 61 1814 10 1818 86 1819 8 1820 4 1827 60, 72, 78, 79, and 84 1831 77 1832 13, 49, and 50 1835 7 1838 51, 55, and 86 1839 48 1842 29 1843 1 1846 5 and 6 1850 18 1851 4 and 68 1852 30 1855 78 1857 65 1860 59 1868 61 and 63 1888 1 1893 50 1925 38 1948 67 1966 22 1989 54 and 57 1996 36 2011 28 2017 27 and 52 3582 47 3584 9 3587 24 3595 13 3597 9 Page 2 of 4 20195182 HAK Res. No. 665 (L.U. No. 265) Page 5 of 5 20195182 HAK Res. No. ___ (L.U. No. 265)