Government briefs

Snapshots of government-related real estate news

U.S. Attorney Preet Bharara
U.S. Attorney Preet Bharara

U.S. Attorney Preet Bharara is examining the de Blasio administration’s decision to lift a deed restriction on a former nursing home on the Lower East Side, an action that paved the way for its sale to a consortium of luxury condo developers, Politico reported. The federal probe comes on the heels of three ongoing investigations, including one by the New York attorney general’s office. Last November, a city agency was paid $16.2 million by building owner Allure Group to remove a restrictive deed on 45 Rivington Street, a move that allowed Allure, a nursing home operator, to use it for purposes other than nonprofit residential health care. Allure later flipped the property, known as Rivington House, for $116 million to a group of three developers, China Vanke, Slate Property Group and Adam America Real Estate. “I’m not happy about the fact that I didn’t hear about it in advance, before it became public,” Mayor Bill de Blasio said. Allure has said it did nothing wrong. The city placed a stop-work order on Rivington House last month.

MTA to study adding 7 line station on 10th Ave

The Metropolitan Transportation Authority is looking into a potential new subway station on the No. 7 line at 41st Street and 10th Avenue, Crain’s New York reported. City bid documents reveal that the MTA is in the process of preparing a study on the project. The 7 train was extended last year from Times Square to 34th Street and 11th Avenue. Originally, the plans included a stop at 41st and 10th Avenue but it was abandoned  due to cost concerns. A 41st Street station stop, reported to cost as much as $1 billion, is seen as critical as the Port Authority moves to build a new bus terminal at 42nd Street and Eighth Avenue, and as residential and commercial tenants fill out Hudson Yards. “I don’t see how you can possibly do the [bus] terminal without the [subway] station,” said Tom Wright, the president of the Regional Plan Association. A spokesman for the MTA told Crain’s that it has no plans to open the station at this point.

State restores rent regulation on thousands of units

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Owners of as many as 50,000 units in 4,800 buildings will have to offer rent-regulated leases to tenants following a state investigation, DNAInfo reported. The Tenant Protection Unit found that the landlords had improperly removed units from rent-stabilization rolls and overcharged tenants in rent. The owners will be required to reregister the units as rent-regulated apartments and to repay a total of $2.25 million in rent overcharges. “TPU has successfully fought for tenant’s rights, returning thousands of units to rent regulation, holding bad actors accountable and forcing restitution for those who have been overcharged,” Gov. Andrew Cuomo said in a statement.

Pepsi Cola sign

Pepsi Cola sign

Pepsi Cola sign granted landmark status

The Landmarks Preservation Commission has voted to designate the Pepsi Cola sign in Long Island City a landmark, the New York Times reported. The red 147-foot-long sign, originally regarded as an eyesore, has been under consideration for 28 years. “Its prominent siting and its frequent appearances in pop culture have made it one of the most endearing and recognizable icons on the Queens waterfront,” Meenakshi Srinivasan, the chairwoman of the LPC, said in a statement. The sign was first installed in 1940 atop Pepsi’s bottling plant and was reconstructed in 1993. After Pepsi closed the plant in 1999, a housing developer bought nearly all of its 21-acre property — except for a 60-by-200-foot parcel where the sign now permanently stands.