DNAinfo published an article about Community Board 6’s recent resolution. The piece included details about ERFA’s rezoning plan (head to our Media Center for more) and a quote from ERFA’s President, Alan Kersh.
MIDTOWN EAST — Community Board 6 has thrown its support behind a rezoning proposal aimed at stopping the construction of skyscrapers in Sutton Place.
CB 6 voted nearly unanimously earlier this month to support a community-funded rezoning application that would limit the height of all new towers, east of First Avenue, from East 52nd to East 59th streets, to 260 feet, or 25 stories.
The East 50s River Alliance, a neighborhood group that sprang up in opposition to the project, filed the rezoning application in January, with support from four city and state lawmakers including Councilman Ben Kallos and State Senator Liz Krueger.
Alan Kersh, president of the alliance, thanked CB 6 for its support of the initiative in a statement.
“We are thrilled that CB6 has not only reiterated its support for rezoning the area to reflect community concerns, but called on City Planning to move swiftly in reviewing and acting on ERFA’s proposal,” Kersh said.
ERFA Plan Continues to Gain Momentum As Community Board 6 Calls Upon Department of City Planning and City Planning Commission to Act on East River Fifties Alliance Rezoning Proposal
On Wednesday, February 10th, Manhattan’s Community Board 6 (CB6) passed, by an overwhelming majority, a resolution that calls upon the Department of City Planning and City Planning Commission to act on the rezoning plan submitted by ERFA. We are grateful that CB6 passed this resolution. You can read the entire resolution here, or head over to our latest News post for media coverage.
This megatower is not a done deal. We keep repeating this because it’s still true. Much as Bauhouse Group likes to boast that its megatower will go up, regardless of community wishes or zoning changes, there are signs that the construction of the development is far from ensured. The developer claims that our proposed zoning change cannot possibly pass through all the needed governmental approvals before the building goes up, but Bauhouse still doesn’t have the money it needs for the project. In fact, it owes a debt of $128.8 million to Gamma Real Estate, which is taking steps to foreclose on it. You can read more about the impending foreclosure in our latest news post.
Crain’s, The Real Deal, and Curbed all recently reported that not only is the Bauhouse Group having trouble funding the Sutton Place project, but Gamma Real Estate, which already lent the developer $128.8 million is taking steps to foreclose on their debt. All three articles mentioned ERFA and our rezoning plan to stop the development.
The developer of a proposed supertall condo tower in Sutton Place that has drawn opposition from residents in the tony Manhattan neighborhood is facing foreclosure by one of its lenders.
Gamma Real Estate, a real estate investment and lending firm operated by N. Richard Kalikow, has started to take steps to seize the project, located at 426-432 E. 58th Street and owned by Bauhouse Group.
Gamma holds as much as $128.8 million in loans against the property, according to both its website and city property records, including mezzanine debt—loans that some developers obtain on top of a senior mortgage. The debt can be risky because they allow lenders to foreclose quickly. According to Stephen Meister, an attorney who represents Bauhouse in the foreclosure action, the Gamma debt expired last month.
Gamma Real Estate is making moves to foreclose on Bauhouse Group’s troubled supertall planned for Sutton Place.
Bauhouse’s $128.8 million in loans expired last month, spurring the lender, Gamma, to begin the process of seizing 426-432 E. 58th Street, Crain’s reported. The developer argues that foreclosure is premature.”
Bauhouse’s Joseph Beninati has been trying to raise money for the project, which apparently now has a name: Sutton 58, but there are potential issues to overcome. As Crain’s points out, one is an excess of high-end residential units. Another is a proposal from the East River Fifties Alliance to impose a 260-foot height cap.