THE COUNCIL OF THE CITY OF NEW YORK RESOLUTION NO. 540 Title Resolution approving an Urban Development Action Area Project located at 55 St. Nicholas Avenue (Block 1822/Lot 52), 132 West 113 Street (Block 1822/Lot 53), 2087 Amsterdam Avenue (Block 2110/Lot 63), 500 West 157 Street (Block 2115/Lot 34), 535 West 156 Street (Block 2115/Lot 53), 537 West 156 Street (Block 2115/Lot 54), 2890 Frederick Douglass Boulevard (Block 2039/Lot 1), 2894 Frederick Douglass Boulevard (Block 2039/Lot 3), 2898 Frederick Douglass Boulevard (Block 2039/Lot 64), 2906 Frederick Douglass Boulevard (Block 2039/Lot 61), 551 West 157 Street (Block 2116/Lot 61), 375 Manhattan Avenue (Block 1849/Lot 38), 2093 Amsterdam Avenue (Block 2110/Lot 68), 560 West 160 Street (Block 2118/Lot 11), 972 St. Nicholas Avenue (Block 2109/Lot 17), 2149 Frederick Douglass Boulevard (Block 1848/Lot 53), 162 East 33 Street (Block 888/Lot 45), and 230 West 108 Street (Block 1879/Lot 51), Manhattan, and waiving the urban development action area designation requirement and the Uniform Land Use Review Procedure, pursuant to Sections 693 and 694 of the General Municipal Law (L.U. No. 279; 20035043 HAM). Body By Council Members Katz and Martinez WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council on August 12, 2002 its request dated August 7, 2002 that the Council take the following actions regarding the following Transfer Parcels (the "Transfer Parcels") located at 55 St. Nicholas Avenue (Block 1822/Lot 52), 132 West 113 Street (Block 1822/Lot 53), 2087 Amsterdam Avenue (Block 2110/Lot 63), 500 West 157 Street (Block 2115/Lot 34), 535 West 156 Street (Block 2115/Lot 53), 537 West 156 Street (Block 2115/Lot 54), 2890 Frederick Douglass Boulevard (Block 2039/Lot 1), 2894 Frederick Douglass Boulevard (Block 2039/Lot 3), 2898 Frederick Douglass Boulevard (Block 2039/Lot 64), 2906 Frederick Douglass Boulevard (Block 2039/Lot 61), 551 West 157 Street (Block 2116/Lot 61), 375 Manhattan Avenue (Block 1849/Lot 38), 2093 Amsterdam Avenue (Block 2110/Lot 68), 560 West 160 Street (Block 2118/Lot 11), 972 St. Nicholas Avenue (Block 2109/Lot 17), 2149 Frederick Douglass Boulevard (Block 1848/Lot 53), 162 East 33 Street (Block 888/Lot 45), and 230 West 108 Street (Block 1879/Lot 51), Community Districts 6, 7, 10, and 12, Borough of Manhattan (the "Transfer Area"): 1. Find that the present status of the Transfer 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 stated in Section 691 of the General Municipal Law; _________ Page 2 of 5 20035043 HAM Res. No. 540 (L.U. No. 279) 2. Waive the area designation requirement of Section 693 of the General Municipal Law pursuant to said Section; 3. Approve the Project as an urban development action area project pursuant to Section 694 of the General Municipal Law; and 4. Approve an exemption of the Project from real property taxes pursuant to Sections 577 of Article XI of the Private Housing Finance Law; and Section 696 of the General Municipal Law (the "Tax Exemption"); WHEREAS, the Project is to be developed on land that is now a municipally-owned area as defined in Section 692 of the General Municipal Law, consists solely of the rehabilitation or conservation of existing private or multiple dwellings and does not require any change in land use permitted under the New York City Zoning Resolution; WHEREAS, upon due notice, the Council held a public hearing on the Project on October 1, 2002; WHEREAS, the Council has considered the land use and financial implications and other policy issues relating to the Project; RESOLVED: The Council finds that the present status of the Transfer Area tends to impair or arrest the sound growth and development of the City of New York and that a designation of the Project as an urban development action area project is consistent with the policy and purposes stated in Section 691 of the General Municipal Law. The Council waives the area designation requirement of the Transfer Area as an urban development action area under 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 set forth in the Project Summary that HPD has submitted to the Council, a copy of which is attached hereto. _________ Page 3 of 5 20035043 HAM Res. No. 540 (L.U. No. 279) The Council approves the Tax Exemptions as follows: 1. Pursuant to Section 577 of the Private Housing Finance Law as follows: a. All of the value of the property in the Transfer Area, including both the land and any improvements, shall be exempt from real property taxes, other than assessments for local improvements, for a period commencing upon the date of conveyance of the Transfer Area to the transferee ("Article XI Commencement Date") and terminating upon the earlier to occur of (i) the fortieth anniversary of the Article XI Commencement Date, (ii) the date of reconveyance of the Transfer Area to an owner which is not a housing development fund company, or (iii) the date upon which the owner of the Transfer Area voluntarily surrenders and revokes such exemption by written notice to the Department of Finance ("Article XI Expiration Date"). b. In consideration of the tax exemption pursuant to Section 577 of the Private Housing Finance Law provided hereunder ("Article XI of Exemption"), the owner of the Transfer Area shall waive the benefits, if any, of additional or concurrent real property tax abatement and/or tax exemption which may be authorized under any existing or future local, state, or federal law, rule, or regulation ("Alternative Tax Benefit"), for so long as the Article XI Exemption shall remain in effect; provided, however, that the owner of the Transfer Area may (i) voluntarily surrender and revoke the Article XI Exemption at any time by written notice to the Department of Finance, and (ii) following the effective date of the surrender and revocation stated in such written notice, utilize any Alternative Tax Benefit for the Transfer Area. c. The provisions of the Article XI Exemption shall apply separately to each individual property comprising the Transfer Area, and a sale or other event which would cause the expiration, termination, or revocation of the Article XI Exemption with respect to one property in the Transfer Area shall not affect the continued validity of the Article XI Exemption with respect to other properties in the Transfer Area. _________ Page 4 of 5 20035043 HAM Res. No. 540 (L.U. No. 279) 2. Pursuant to Section 696 of the General Municipal Law as follows: a. All of the value of the buildings, structures, and other improvements situated on the Transfer Area shall be exempt from local and municipal taxes, other than assessments for local improvements and land value, for a period of twenty years commencing on the Article XI Expiration Date ("UDAAP Commencement Date"); provided, however, that such exemption shall decrease in ten equal annual decrements commencing upon the July 1st immediately preceding the tenth anniversary of the UDAAP Commencement Date. b. In consideration of the tax exemption pursuant to Section 696 of the General Municipal Law provided hereunder ("UDAAP Exemption"), the owner of the Transfer Area shall waive the benefits, if any, of any Alternative Tax Benefit for so long as the UDAAP Exemption shall remain in effect; provided, however, that the owner of the Transfer Area may (i) voluntarily surrender and revoke the UDAAP Exemption at any time by written notice to the Department of Finance, and (ii) following the effective date of the surrender and revocation stated in such written notice, utilize any Alternative Tax Benefit for the Transfer Area. c. The UDAAP Exemption shall terminate with respect to all or any portion of the Transfer Area if the Department of Housing Preservation and Development ("HPD") determines that such real property has not been, or is not being, developed, used, and/or operated in compliance with the requirements of all applicable agreements made by the transferee or any subsequent owner of such real property with, or for the benefit of, the City of New York, HPD shall deliver written notice of any such determination of non compliance to the owner of such real property and all mortgagees of record, which notice shall provide for an opportunity to cure of not less than ninety (90) days. If the noncompliance specified in such notice is not cured within the time period specified therein, the UDAAP Exemption shall prospectively terminate with respect to the real property specified therein. d. Notwithstanding any other provision to the contrary, the combined duration of the Article XI Exemption and the UDAAP Exemption shall not exceed forty (40) years. _________ Page 5 of 5 20035043 HAM Res. No. 540 (L.U. No. 279) e. The provisions of the UDAAP Exemption shall apply separately to each individual property comprising the Transfer Area, and a sale or other event which would cause the expiration, termination, or revocation of the UDAAP Exemption with respect to one property in the Transfer Area shall not affect the continued validity of the UDAAP Exemption with respect to other properties in the Transfer Area. 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 October 9, 2002, on file in this office. ..................................... City Clerk, Clerk of the Council