Locals Concerned About Shops at Atlas Park Future with Center Set for Auction by Nicholas Hirshon - NY Daily News

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The Shops at Atlas Park have been run by a court-appointed receiver for two years

A foreclosed Queens mall is set to be auctioned Friday, marking a turning point for the embattled Shops at Atlas Park as locals wonder how a new owner will operate its mix of stores and eateries.

The Glendale complex, which has been run by a court-appointed receiver for two years, will go up for bids at the 11 a.m. sale at Queens Supreme Court.

At stake is the future of Atlas Park, an outdoor shopping center with a movie theater, a Borders bookstore and chain restaurants. Many of the mall's smaller businesses have slumped through recent years.

Insiders said it's hard to predict the sale's outcome.

"It's either going to be anti-climactic or you're going to have four bidders going hot and heavy on this thing," said lawyer Dennis Cappello, appointed by the court to run the sale.

The banks that mortgaged the mall, Credit Agricole and Société Générale, hope to snare at least $119 million - about the amount of the loan to the mall's founders, Atlas Park LLC.

Among the parties rumored to be in the mix for the auction are Cypress Equities, once affiliated with football legend Roger Staubach, and the mall founders, the family of ex-MTA Chairman Dale Hemmerdinger.

Cypress has denied interest in bidding. Hemmerdinger's son, Damon, once the mall's development director, declined comment.

Locals figured a national mall operator could also swoop in.

The powerhouse Chicago firm McCaffery Interests, once considered a frontrunner to land Atlas Park, dropped out last fall.

But the bidding war may not play out. The auction will be postponed if Atlas Park LLC files for bankruptcy before the sale. Sources said that scenario is unlikely.

Cappello said the banks had not decided as of yesterday morning on an "upset price," or the minimum amount at which the mall can be sold.

If the banks set an upset price and no bidder goes that high, the mall becomes bank property.

In that case, the banks would probably seek to sell the property as soon as possible rather than manage the mall, sources said.

An attorney for the banks declined comment.

Questions linger about the mall's direction under a new owner, who might decide to shift its focus from upscale to more affordable stores - or even raze the place for an entirely new project.

Residents are counting on the sale to end a tumultuous period for the Cooper Ave. center.

"We need to move forward," said Kathy Masi of the Glendale Civic Association.

Watch Elizabeth Warren on the Tavis Smiley Show - January 12, 2011 | PBS

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Watch the full episode. See more Tavis Smiley.

Time named Elizabeth Warren one of the world's 100 most influential people and President Obama selected her to launch the newly created Consumer Financial Protection Bureau. She's devoted much of her career to studying the economics of middle class families and is also a best-selling author of books on credit and economic stress. On leave from teaching law at Harvard, Warren previously taught at Texas, Michigan and Penn and is credited with groundbreaking research on the U.S. bankruptcy system. She formerly chaired the Congressional Oversight Panel.

NYRA to Auction Land Near Aqueduct by Stephen Geffon - Queens Chronicle

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A satellite image of NYRA’s vacant lots, which are being prepared for auction, and homes that abut them. The lots are located near Aqueduct Racetrack in Ozone Park. (image courtesy of Stephen Geffon)

The New York Racing Association announced last week it will auction 64 parcels of vacant land it owns in Ozone Park near Aqueduct Racetrack on Wednesday, June 10 at 1 p.m.

NYRA and the state were involved in a long dispute over who owned the properties, which was resolved last year under an agreement that extended NYRA’s franchise for 25 years and handed to the state ownership of New York’s three racetracks, Aqueduct, Belmont and Saratoga. NYRA retained title to the vacant land surrounding Aqueduct.

The properties, touted by the auctioneer as “prime development opportunities” are located on 17.5 acres of land between the Belt Parkway and Aqueduct Racetrack and range from 2,000 to 75,000 square feet. The lots can be purchased separately or in groups, according the auctioneer’s website, maltzauctions.com.

The lots are zoned R-4, which allows for detached, semi-detached and attached housing, including row houses and multiple-unit buildings.

State Sen. Joseph Addabbo Jr. (D-Howard Beach) said he is determined to seek as much information as possible for the community from NYRA and Gov. David Paterson’s office regarding the pending sales.

Addabbo added that it is important to deal now with the situation carefully since the residents of the surrounding community will have to live with whatever is built there.

NYRA’s Chief Administrative Officer Jack Ryan said the association has been interested in selling the properties for several years. The Ozone Howard Little League field in Centerville will not be included in the sale.

As NYRA emerged from bankruptcy in March 2008, U.S. Bankruptcy Judge James Peck said the horse-racing association may hold auctions to individually sell the 64 parcels of land that have a total worth in the range of $15 million to $20 million, according to published reports.

The funds are expected to be put toward paying NYRA’s creditors including state back taxes of $1.4 million and an Internal Revenue Service debt estimated to be close to $25 million.

News of the auction came as a complete surprise to the residents of the Ozone Park community. Those whose homes abut the empty lots said they first became aware of the sale when they received a letter dated March 25 from Richard Maltz, vice president of the Real Estate Auction Division of David R. Maltz & Co. Inc.

Maltz’s letter began, “As you may be aware, NYRA Inc. owns the vacant land that adjoins your property. At this time we must inform you that NYRA has decided to liquidate certain assets that are not part of its core business strategy. Every parcel must go!”

The letter also advised homeowners that they must immediately remove any structures, fences, pools or items stored on the NYRA property.

“You are welcome and encouraged to participate in the auction and to purchase the property,” Maltz concluded, advising the homeowners that any questions should be directed to his office at (516) 349-7022.

In a telephone interview Richard Maltz told the Chronicle he had received no negative feedback from the community. He said the calls he received were from residents requesting more information about the auction.

A resident of Huron Street in Centerville who gave his name only as George said that he and his neighbors are concerned that a developer would purchase the land and build row houses on it. He added that the area is already congested with traffic and has no sewers, causing floods when it rains.

George said construction of additional homes would just create more problems for the residents. George felt that he should be given preference in bidding for the vacant land adjacent to his home or that it should be turned into a community garden.

Assemblywoman Audrey Pheffer (D-Ozone Park) has vowed to closely monitor NYRA’s public auction sale. In a statement released Monday, Pheffer said that she, along with other local officials, will meet with NYRA and the auction company to clarify details of the June sale. “It is important that the process be conducted in an open manner whereby local residents know exactly what to expect,” Pheffer said.

Pheffer noted that the Bankruptcy Court’s Order mandates that the first $9 million of the land sales profit go to pay the IRS, and then be utilized to provide needed capital improvements at Aqueduct. The remainder would pay off NYRA’s debt to New York State.

Pheffer said all the properties are subject to existing zoning restrictions, meaning that any new buildings must be similar to surrounding homes.

Towns Commemorates Conrad B. Duberstein, Renames Bankruptcy Courthouse in His Honor

U.S. Rep. Edolphus “Ed” Towns (NY-10) honored the late Judge Conrad B. Duberstein today at a 9:00 a.m. naming ceremony for the United States Bankruptcy Courthouse, located at 217 Cadman Plaza East in Brooklyn.

Rep. Towns passed legislation in the 110th Congress to name the courthouse after Judge Duberstein, and this event was the culmination of that effort.

Presenting the late Honorable Conrad B. Duberstein’s family with a framed copy of the law, Towns stated, “I had the honor of knowing Judge Duberstein, and I can tell you that he dedicated his life to pursuing justice. A man of great integrity and exceptional intellect, he worked tirelessly to make a difference,” said Towns.

The Honorable Conrad B. Duberstein, affectionately known as “Connie,” was born in Bronx, New York. He dropped out of school to support his family at the age of 17. He later returned to college, earning an undergraduate degree from Brooklyn College in 1938 and a Juris Doctorate from St. John’s University Law School. Admitted to the Bar of the state on New York in 1942, Judge Duberstein practiced bankruptcy law until his entry into the United States Armed Forces in 1943.

During his service in the infantry, Duberstein was wounded in action and received the Purple Heart, the Bronze Star Medal, three Battle Stars, and the Combat Infantry Badge. After leaving the Army following World War II, Duberstein joined the Brooklyn law firm of Schwartz, Rudin and Duberstein. He would later become a partner at Otterbourg, Steindler, Houston and Rosen, where he remained until his retirement until 1981.

In 1981, Duberstein was appointed to the Eastern District Bankruptcy Court of New York. Judge Duberstein was later appointed Chief Judge in 1984, a position he held for the remainder of his career.

Judge Duberstein was awarded an honorary doctorate of law from St. John’s University, and a moot bankruptcy court competition was created by the American Bankruptcy Institute to honor him. The Honorable Judge Conrad B. Duberstein is widely regarded as an important figure in bankruptcy law by many around the country.

State Legislation to Address Foreclosure Crisis by Stephen Geffon - Leader-Observer

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Members of the board of the Sisterhood of the Rockwood Park Jewish Center and community leaders at last week’s open community meeting.
From left to right are Sue Bildner, vice president, Lenore Greenberg, president, Mary Fydell, Rabbi Tzvi Berkowitz, Frank Gulluscio, Democratic district leader, and
Betty Braton, chair of Community Board 10
Photo:Stephen Geffon

Foreclosure, a pressing issue of concern to community residents, was discussed by Community Board 10 Chairwoman Betty Braton at last week’s open meeting of the Sisterhood of the Rockwood Park Jewish Center in Howard Beach.

Community Board 10 is bounded by Liberty Avenue/103rd Avenue on the North, Van Wyck Expressway on the East, 165th Avenue and JFK Airport on the South and the Brooklyn/Queens Line on the West.

Braton cited a study by NYU’s Furman Center for Real Estate and Urban Policy that found that on average one in every three homes in Queens faced foreclosure. She said that many senior citizens who got conned into taking out the equity on their homes are now in dire straits.

Braton noted that not only are the homeowners are affected by the foreclosure, but so are the renters who also face eviction when a property is foreclosed.

Councilman and Senator-elect Joseph P. Addabbo was recently quoted in a newspaper interview regarding the foreclosure crisis.

“We’re seeing a ripple effect as property values plummet and surrounding neighborhoods experience an increase in quality of life issues like graffiti and crime,” the councilman said, adding that often foreclosed homes fall into disrepair and attract illegal activity.

Addabbo noted that foreclosed properties directly correspond to an increase in neighborhood violent crime by 6.7 percent.

The councilman said that homeowners living near foreclosed properties would see their property values decrease by $5,000 on average per each foreclosed home.

In an effort to help New Yorkers affected by the foreclosure crisis, Governor David Paterson has signed into law a critical sub-prime lending reform bill that directly addresses the mortgage crisis in New York State.

According to the Governor’s Office, the new law will immediately help protect people from losing their homes and mandates reforms to help avoid a similar crisis in the future. The bill also takes into consideration the importance of striking the right balance between consumer protection and the availability of affordable credit.

Paterson’s office explained that the bill works in two ways: immediately helping to prevent New Yorkers from losing their homes by assisting those who are currently facing foreclosure and by attacking flaws in New York’s banking regulations to prevent such a crisis from happening again.

The immediate focus of the bill is on existing homeowners facing foreclosure. The bill requires lenders to send a pre-foreclosure notice to borrowers at least 90 days before foreclosure proceedings may be initiated. This will encourage homeowners to seek help prior to the initiation of foreclosure proceedings. The bill would also require lenders to list in the notice government-approved housing counselors serving the borrower’s area.

The bill establishes a mandatory settlement conference for foreclosure proceedings involving homeowners with certain sub-prime loans. For homeowners who cannot afford an attorney, the court, under certain circumstances, may appoint one.

The bill also requires plaintiffs in an action against a homeowner to make an affirmative allegation that they have standing to bring the foreclosure action and have complied with certain applicable laws. Ownership of the mortgage and the note is sometimes uncertain, which has lead to questionable foreclosure practices.

The bill includes provisions to address foreclosure rescue scams intended to take advantage of borrowers when they are most vulnerable. This bill will prohibit upfront fees and require a written contract from so-called “distressed property consultants.”

Braton said the city has set up an initiative to prevent foreclosures. “If you know of anyone who is behind in a mortgage tell them not to wait until it is too late,” said Braton who urged these residents to contact Pam Glaser, director of Foreclosure for the city’s Housing Preservation and Development agency, who will refer them to a legitimate agency that can assist them. Glaser can be contacted at (212) 863-6721.

NYRA Breaks From Bankruptcy Gate - Politics on the Hudson

Politics on the Hudson

The New York Racing Association today said it has emerged from Chapter 11 bankruptcy and has filed incorporation papers to create the new New York Racing Association.

In February, the state Legislature after years of indecision selected NYRA to continue to run thoroughbred racing for 25 years at Saratoga Race Course, Belmont Park and Aqueduct Racetrack.

“Today’s birth of the newly constituted, not-for-profit NYRA is the culmination of complex negotiations that will secure and enhance the interests of thoroughbred racing in New York for the next 25 years,” said NYRA Chairman C. Steven Duncker.

NYRA filed for bankruptcy on Nov. 2, 2006. The new NYRA Board of Trustees has 14 members appointed by NYRA and 11 State-appointed members. The board’s composition will be announced next week.

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