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New York

Co-op City shareholders suspend management firm

Marion Scott Real Estate accused of failing to correctly insure the massive Bronx complex

Co-op City in the Bronx
Co-op City in the Bronx

Shareholders of Co-op City have suspended management company Marion Scott Real Estate from operating the 15,000-unit Bronx residential complex.

The board of directors of RiverBay announced this week it had taken over day-to-day operations. The directors claimed that Marion Scott mishandled its duties, failed to correctly insure the complex, and negotiated contracts without approval from RiverBay. 

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RiverBay has also requested that the state investigate its charges against the managing agent.“These acts of misconduct will not be tolerated,” Cleve Taylor, president of RiverBay, said at a public meeting, according to the New York Daily News. “The board has taken action.”

In February, Co-op City workers filed a class action lawsuit against the complex, alleging they are owed around $5 million in back pay, as previously reported. [NYDN] — Mark Maurer

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