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September 19, 2009
Weinstein awarded possession of property once claimed by Ratner, but condemnation plan awaits
Atlantic Yards Report
Henry Weinstein owns property in the footprint of the proposed Atlantic Yards project. He leased it to Shaya Boymelgreen. Shaya then leased it to Forest City Ratner, and FCR leased it back to Shaya. This was to give the appearance that FCR controlled the 5% of the footprint property held by Weinstein. It was a dandy scheme, except that it was illegal.
A day after the Empire State Development Corporation finally corrected a deceptive map that suggested Forest City Ratner controlled three properties in the Atlantic Yards footprint, property owner Henry Weinstein got a court order giving him possession of the building and parking lot occupied by his tenant, Shaya Boymelgreen.
The properties, with asterixes indicating that while controlled by Ratner (according to the ESDC) the issue was in dispute , are at the southeast corner of Pacific Street and Carlton Avenue, on Block 1129, destined for interim surface parking.
Boymelgreen had leased the properties to FCR, which in turn leased them back to Boymelgreen, who used the building for offices. The fig leaf allowed the state and developer to assert that FCR owned or controlled 90% of the site, but that was 5% too much. Weinstein has protested in court for years, and won interim victories.
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“We got an order of immediate possession,” Weinstein said. On Monday, he said, he likely will go to the properties, make sure everyone has left, or get the sheriff to evict them.
No money has been awarded yet, but Weinstein said that Boymelgreen owes about $200,000 for four months of rent, then up to $110,000 additionally. After that, he intends to seek several million dollars for breaching the lease, as well as payment for the $29 million for the 41 years left on the lease.
“The important point is that Ratner illegally and fictitiously and fraudently represented he controlled the property,” Weinstein said. “ESDC [Empire State Development Corporation] rubber-stamped it."
Posted by steve at September 19, 2009 10:51 AM