Friday, June 3, 2016
Private company getting public money to upgrade their property
From DNA Info:
The nearly $24 million contract for the controversial shelter at the former Pan Am hotel does not include the cost of renovations required to convert the space into a federally allowable family shelter, according to its contract.
City taxpayers will pick up that $2 million-plus tab.
The 216 rooms inside the shelter, which opened in June of 2014, all must have kitchens under federal guidelines — and will cost an estimated $2.2 million on top of the $23.8 million contract, which was issued in February after multiple denials, officials said.
The city plans to foot the bill for the additional kitchen renovation costs, as well as the costs of building an on-site day care center and a playground, according to the Department of Homeless Services.
The building is owned by Steven Berger, who bought it under the LLC 7900 Development Corporation, according to city records. He owns and operates multiple homeless shelters, including the LaGuardia Family Center and the East River Family Center, records show.
So why isn't he paying for this?