Monday, August 24, 2009

The City always has money to bailout developers!

From the NY Post:

The owners of two distressed luxury condo buildings -- one in Harlem and another in Downtown Brooklyn -- are in talks with the city to unload their unsold units at fire-sale prices as affordable housing, The Post has learned.

City officials won't say where exactly the buildings are located while they are negotiating with banks that have foreclosed on the properties.

If the deals close, the units would be the first in a program pushed by City Council Speaker Christine Quinn to spend $20 million to put vacant apartments on the market at a steep discount in order to expand the city's affordable-housing portfolio.

New homeowners -- who would have to meet income limits and participate in a lottery -- would get the bargain of a lifetime.

A $500,000 luxury condo might be marked down to $300,000, suggested Rafael Cestero, the city housing commissioner.

In return for the markdown, developers or bankers would get up to a $50,000 city subsidy for each apartment.

"They would have to take significant losses," Cestero said.

He added that if the prices are right, the city would be prepared to buy unfinished buildings, as well as those where at least 50 percent of the units are empty.

Whether the program works depends on bankers' hunger to get rid of their distressed properties, he said.

Notice how every time a community in Queens asks for something - new sewers, better police presence, keeping firehouses open, creating parkland, preserving history - it is told that there is no money? But hey, if a developer needs something, Bloomie can't whip out the checkbook fast enough. And Christine Quinn smiles and nods in agreement.

A classic case of an addict and his enabler.


Suzannah B. Troy artist said... Since the mayor has no empathy for the people of New York I ask him in this posting to imagine if his daughter's horses were evicted because NYU or Columbia University bought the property where they are housed.

I just sent this in to the mayor about gun violence but I slammed him hard and heavy for his aiding and abetting developers. Glad you have Quinn's photo up since she sponsored Dermott 2 million dollars for a project that never happened and they gave her heft campaign contributions according to Benjamin Lesser article

Linda said...

Why doesn't anyone understand bloomass has a "special interest" with the developers. I bet if someone looked into his books they would find investments with the developers. how can this man make billions when the city is falling apart? I don't understand why no one questions it through this government. He's screwing new york and gets away with it, why else would he want a third term? to cover his fxxking ass.

Taxpayer said...

Anyone else notice the use of eminent domain to acquire this property and deliver it for use by other private beneficiaries?

Holy Moly!

No! The Commissar and his handmaiden Quinn DID NOT use eminent domain?

I wonder why.

Oh! Yeah! The current owners are developers. Delicate, fragile developers. They are the flowers in The Commissar's and Quinn's cash crops garden.

The Commissar and his girl would NEVER seize a crony developer's property.

Actually, eminent domain was used, after all. Your money - yes, the stuff YOU earn by working - was seized and delivered to private interests who are already extremely wealthy.

So the Commissar Shit did do eminent domain again!

Why do we bother considering this dirtbag for a third term?

How is he of any use at all to any of the people in New York who pay all his bills?

Let's show him how smart we really are. Let's dump him.

Tony Avella is a better choice for all of us by far.

Do we or don't we want to see this city managed by an honest, intelligent fellow who has lived the same life that we all do?

Take control.

Anonymous said...

Linda, People are IDIOTS. I still hear people say that Bloomberg sacrificed himself to be mayor and only gets paid 1 dollar. People are IDIOTS and it affects us all since we have to live with their STUPID votes. Look at NY1 and all the dumbass people with their opinion on bloomberg's job. We have Kathy Gruber stated he was good for Health Network when HOSPITALS were closed down under his watch.

Diary-ah said...

Why is it that whenever the gov't subsidizes something, someone else gets all "he's getting more than me!"

I don't think most people realize the danger of uninhabited highrises, and what it can do to take down a community (imagine if every vacant bldg in billyburg were squatted). Do you really think developers are making bank selling their $700k condos for a total of $350k with subsidy?

Queens Crapper said...

I really don't care about whether the developer is "making bank" by this bailout. He is getting a handout while the rest of the city is told there is no money for what they need.

Anonymous said...

the city can buy the foreclosed property back cheaper from the bank than the developers. This is all a scam and a bail out for the developers with TAXPAYER money.

Missing Foundation said...

Stop bitchin' to each other and take a page from the health
insurance nuts.

Immigrants, stand up and complain while the cameras are rolling to Blumberg, and Quinn, there is no money for programs while campaign donor developers are living high on the hog in Bermuda with your bailout money.

Homeowners, stand up and complain while the cameras are rolling to Blumberg, and Quinn, there is no money for sanitation and quality of life issues while campaign donor developers are living high on the hog in Bermuda with your bailout money.

Mothers, stand up and complain while the cameras are rolling to Blumberg, and Quinn, there is no money for classrooms while campaign donor developers are living high on the hog in Bermuda with your bailout money.

Seniors, stand up and complain while the cameras are rolling to Blumberg, and Quinn, there is no money for senior care while campaign donor developers are living high on the hog in Bermuda with your bailout money.

Anonymous said...

Where is the FBI?? The FBI only cares about the Gottis and overlook the real crooks.

Anonymous said...

$20M would be enough to purchase the St. Saviour's, Klein farm and Cornell farm properties.

Anonymous said...

Where is the Public Advocate in all this. Hey Betsy, aren't you supposed to advocate for the taxpayers you represent? Your silence is deafening. Another reason why we don't need a Public Advocate. Another waste of taxpayer dollars.

Unknown said...

Thanks Linda for bringing it up. Would someone Audit Bloomberg already! The man spent his entire life amassing 5 billion dollars and now has 20 billion after 8 years of "sacrifice" in public service. All while the city has had 2 "doomsday" budgets, the country's been at war, Wall Street has collapsed, and the dollar has been awful. Neat trick? Doctoroff was behind many of these development projects and is now President of Bloomberg LP, yet still advises the EDC, because the Mayor's appointed "Conflict of Interest" board gave the green light. Yeah nothing smells here.

Anonymous said...

One of the issues (only one) that will hurt Mayor Mike in his re election is that he has destroyed NYC by overdevelopment. The Department of Buildings is a disgrace. It is a poorly run agency that does not enforce the law.

Anonymous said...

If only they ran the DOB with the iron fist they run the DOE, there would not have been any construction deaths.

Anonymous said...

Time to audit Bloomberg. Linda is correct. He managed to be one of the few billionaires to make money during this recession, yet the city budget is in dire straits under his watch. How come he can make money for himself, but not manage the city finances. He oversees them. Time for the Feds to come in. Time for an Audit!

Anonymous said...

Public Advocate?

Vote for Norman Siegal and I guarantee there will be no silence.

Anonymous said...

If you are tired of Boss Quinn's tweeding, she has a primary opponent, Yetta Kurland.

Anonymous said...

I'm gonna betta on Yetta. Anyone but Quinn. What a pig. She's always supping from the Public trough. Please vote her and her turtle-faced boyfriend out come November.