Trump Soho developers skipping required audits: city report

TRD New York /
Sep.September 10, 2013 11:15 AM

The developers of the Trump Soho are being accused by the city of failing to file annual audits that they agreed to as a condition for building on land not zoned residential.

The Bayrock Group and the Sapir Organization are in violation of a 2007 restrictive declaration that commits them to reporting the number and duration of stays each year at the tower at 246 Spring Street, according to a review by the Department of Buildings. The agreement calls for Bayrock and Sapir to hire an accounting firm to certify the information.

The Greenwich Village Society for Historic Preservation, a longtime opponent of the 391-unit condominium, requested the review and reported the findings in its newsletter as well as pointed out that the city has not filed penalties or monitored the absence of reports.

“At its best, this is a gross abdication of city officials’ responsibilities,” Andrew Berman, the society’s executive director, told The Real Deal, “and at its worst it’s a sham and a fraud.”

The Bayrock Group, through executive vice president Julius Schwarz, declined to comment.

The Trump Hotel Collection has turned the information over to auditors, said Jim Petrus, chief operating officer of the hotel management division.

Manhattan Borough President Scott Stringer learned last month about the possible violation, and his office then wrote a letter to DOB officials asking them to again investigate, a spokesperson said.

Under the city’s zoning rules, the construction of a residential building at the site is prohibited. In 2007, Stringer and City Council Speaker Christine Quinn struck a deal to let the 454-foot tower project proceed: Owners cannot stay in their units for more than 29 days in a 36-day stretch and cannot live there for more than 120 days per year, effectively making the building a hotel, rather than a residence. The agreement also involved the submission of annual audits.

“Our office was the first to find that they were illegally advertising residential uses and got them to desist,” Stringer spokesperson Megan Dougherty said. “We will continue to fight to ensure Trump Soho does not violate the zoning.”

Quinn could not be reached for comment.


Related Articles

arrow_forward_ios
From left: Rotem Rosen, Zina Sapir, Tamir Sapir, Bella Sapir, Elena Sapir, and Alex Sapir (Credit: Getty Images)

Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen

Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen
1323 Boston Road, Jeff Fox (Credit: Google Maps)

Foxy Management plans another Bronx senior housing project

Foxy Management plans another Bronx senior housing project
An aerial of 700 Atlantic Avenue with Greenland USA CEO Hu Gang (Credit: Google Maps; Gang via CGCC)

Greenland plans 41-story resi tower at Pacific Park

Greenland plans 41-story resi tower at Pacific Park
Donald Trump with Mar-a-Lago Club, Trump National Doral Miami, Trump International Hotel & Towers Manhattan and Chicago (Credit: BRENDAN SMIALOWSKI/AFP via Getty Images, Christine Davis, Ingfbruno, and Trump International)

American carnage: Trump Org hotels, golf courses have laid off over 1K employees

American carnage: Trump Org hotels, golf courses have laid off over 1K employees
 Donald Trump

Trump’s Mar-a-Lago furloughs 153 employees

Trump’s Mar-a-Lago furloughs 153 employees
Michael Cohen and Donald Trump (Credit: Getty Images)

Home in the time of corona: Michael Cohen to be released from prison

Home in the time of corona: Michael Cohen to be released from prison
DOB Commissioner Melanie E. La Rocca (Credit: iStock)

City tweaks affordable housing construction rules to comply with state guidelines

City tweaks affordable housing construction rules to comply with state guidelines
Donald Trump and Trump International Hotel at 1 Central Park West (Credit: Alex Wong/Getty Images, Google Maps)

Trump International Hotel lays off 70 employees

Trump International Hotel lays off 70 employees
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...