Upper East Side, New York — Developer Extell beats out tenants with stable rents. endured Construction of the block-sized Upper East Side Tower took place over a year. Lawyers fear the new court ruling will create a troubling precedent for thousands of tenants in the city.
September 27 dominate I objected to the tenant, Greg Marshall. last resident His walk-up building at the corner of East 86th Street and First Avenue. Extell has spent years buy When demolition Other low-rise tenements on the block, leaving only the Marshall building and another mid-block building Owned by two holdout landlords.
Marshall won his first court ruling last fall after Extell sued to try to release Marshall — and Extell soon Submitted plans for a 22-storey tower It cuts awkwardly around his house and other Holdout buildings.
But Extell has appealed, and a ruling last month by the state Supreme Court’s appeals division found the company could refuse to renew Marshall’s lease to demolish the building.
Marshall, 45, told Patch he has lived in the building for 22 years. bought His six-story building in 2014.
“It’s been about seven years now,” Marshall said last week.
‘A tough decision for tenants’
Marshall was allowed to stay at home in 2021 due to an order from the state government responsible for rent stabilization. control Extell’s failure to demonstrate “good faith” intent to demolish the building or its financial ability to construct something new on the site. The Supreme Court Justices generally agreed, dominate Last November, Extell did not demonstrate the financial capacity to carry out the project.
The new ruling overturns that, showing that 2000 amendments were made to the state’s Rent Stabilization Act, removing any requirement that a developer show what they plan to build after they demolish a building. I’m here.
“In the long run, it’s a terrible decision for tenants,” said Fred Seaman, Marshall’s attorney. I am afraid that
Fellow tenant attorney James B. Fishman said the amendments at the heart of the new ruling came during the landlord-friendly administration of Republican Governor George Pataki. However, since state law has not been changed to comply with administrative statutes, the amendments have had little impact on tenants, Fishman said.
“Even after the word was removed from the code, [the state] It took continued integrity to have the ability to segregate the funds and build new buildings, not just demolish them,” Fishman told Patch.
But the new ruling could bring state law more in line with landlord-friendly codes. Now, Fishman says landlords are using bogus demolition plans to evict rent-stable tenants and make buildings more affordable. I’m afraid that I might leave it alone and resell it to another buyer at a higher price.
If that happens, some of the profits earned by tenants from 2019 onwards will be lost. It was deleted Fishman said landlords can ease restrictions on apartments with stable rents if they become vacant.
“There could be thousands of rent-stabilized tenants in New York City who are at risk right now,” he said.
“I have been here for a long time”
For now, Marshall doesn’t have to move out of his apartment, which as of 2019 paid $1,851.71 a month in rent.
His attorney, Seaman, said he plans to appeal the Sept. 27 ruling to New York’s Supreme Court of Appeals, but it remains to be seen whether the court will hear the case.
Even if Extell wins and demolishes the Marshall building, its future development may need to avoid the remaining remaining buildings. infamous Landlords Stuart and Jay Podolski said they refused to sell. last year’s report By Real Deal.
of schedule Last year, Extell filed a claim for a 543-unit apartment building that spans the entire First Avenue block between East 85th and 86th Streets, surrounding the Marshall building and the Podolskys property. (Chairman Extel told the New York Times Last year he considered building a school, but the official plans didn’t mention it.
Megadeveloper Extell, best known for building the Midtown skyscraper Billionaire’s Row, did not respond to a request for comment on the new ruling.
Marshall, for his part, remains dangling. He said on Patch Monday that his heating stopped working, and his lawyers have accused Extell of harassing him by refusing to pay his building’s utility bills, resulting in cooking gas. Lost.
Still, he wants to stay in an apartment that is “comfortable and quiet despite the construction.”
Marshall said, “I’ve been here for a long time.”
Got news tips for the Upper East Side? Contact reporter Nick Garber at [email protected]