Seward Park Co-op Board Prevails Against Disgruntled Residents in Parking Garage Privatizing Lawsuit

Posted on: July 26th, 2017 at 5:04 am by

The civil war that polarized the Seward Park Co-ops for the last year finally concluded last week.

The Seward Park Board of Directors essentially privatized the garage as a for-profit parking operation when it entered a ten-year lease with Icon/Quik Park in early 2016. It was a 6 to 5 vote at the time. According to Habitat, property taxes more than doubled in the previous seven years while monthly maintenance had increased by just 14-percent, so the board made this deal as a profit engine to boost the bottom line.

However, disgruntled tenants led by Don West, president of the 7th Precinct Community Council, charged that no informational meetings were held before the decision was made; that the rights of those with parking spaces were violated; and that entering into agreement was illegal. Shareholders subsequently sued the board in New York Supreme Court.

Now, a year later, Justice Arthur Engoron just tossed the suit.

“The board was elected specifically to conduct the day-to-day affairs of the co-op,” Engoron wrote in his decision. “It would be nearly impossible for co-op boards to function if every time they had to act, they had to entertain potentially endless debate involving numerous varying positions.”

He wrote: “The board acted within its authority – i.e., converting the garage for the co-op’s financial benefit – even if its decision to do so was unpopular with some (apparently a minority of) shareholders.”

Engoron also ordered the plaintiffs to cover the legal fees the co-op board incurred while defending its position. Total cost will be determined later.

Recent Stories

When ‘Forward’ Lit the Way on East Broadway

There was a time when the lights burned bright above East Broadway. And we’re not talking about the sign for 169 Bar. Indeed, the iconic Jewish Daily Forward building at 175 East Broadway – designated a city landmark in 1983 – once boasted rooftop lighting that may have rivaled those of the Atlantic City boardwalk. […]

Dough Pizza Takes Over from ‘Champion’ at Ludlow Residence Dorm

Pizza maven, Famous Hakki Akdeniz recently shut down his Champion Pizza outpost on Ludlow Street. Now, a likeminded successor is ready to swoop in. Dough Pizza, a new pizza business, just signed a lease for the 475 square-foot spot in the base of the School of Visual Arts skyscraper dormitory (aka Ludlow Residence). The restaurant […]

Shooting on Henry Street Leaves Man with Ankle Wound

A man opened fire on the Lower East Side late Friday night, injuring one person. Surveillance footage from Henry and Montgomery Streets at 11:43pm shows the suspect exit a car and start shooting. Five rounds shot, according to eyewitnesses. Cops say that one of the rounds hit the 32-year-old victim in the left foot, and […]

East Side Coastal Resilience Project Begins with Closure of Asser Levy Park

The $1.45 billion East Side Coastal Resilience Project is now underway, commencing with the partial closure of Asser Levy Playground near East 23rd Street. Plywood fencing arrived onsite shortly before Thanksgiving. Its placement signals the beginning of demolition work onsite. However, the park space isn’t completely sealed. During this initial phase, the handball and track […]

Police Seek Man in Connection with Mugging of 85-Year-Old Woman

Police this week released surveillance footage of the man wanted in connection with the mugging of an elderly woman on the Lower East Side. On the afternoon of November 18, the suspect approached an 85-year-old woman on Madison Street, near Gouverneur Street. He snatched her purse, causing the victim to lose balance and fall to […]