By Norman Gersman
February 11, 2008
A commericial building in the Village of Hempstead, 100 Main Street, a former bus terminal was the subject of almost an hour of discussion today at a session of the Nassau County Legislature. At the start of the session during public comments Mr. Claude Gooding, the Commissioner of the Community Development Agency for the Village of Hempstead approached the microphone. He told the legislators about $700,000 of approved funds were being withheld from his agency by County Comptroller Howard Weitzman that should be disbursed to many charitable and local community organizations in Hempstead. Some of those groups were represented by people who said that their programs were going to grind to a halt without the money. Mr. Gooding wanted the Legislature to put the pressure on the Comptroller for the money.
Why was the money being withheld? The answer was that the property at 100 Main Street is in foreclosure, a receiver has been appointed, and Mr. Gooding's Community Development Agency (CDA) is a defendant. He explained that in 2001 an organization named One Hundred Black Men Development Corp. of Long Isand, Inc. (OHBD), a volunteer civic group with 110 chapters throughout the United States, purchased the building from the CDA for $10,000,000. The CDA is a guarantor of their mortgage. One easily got the impression that the OHBD was really a bad guy. Mr. Gooding asked the Legislature if they were going to help get the funds from Mr. Weitzman, and also save the building. Everyone was totally confused and the Legislators naturally concluded that they would have to schedule a hearing to get to the bottom of the situation. There had to be more to the story and of course, there is.
The CDA sold the building to OHBD on March 27, 2001 for the price of $8,000,000. The OHBD took a $10,000,000 HUD Section 108 loan guaranteed by the CDA. $6,500,000 of the loan was used to retire the debt of the previous owner on the building; $2,000,000 went to the administration and rehabilitation of the building; and I am not sure where the balance went. The mortgage and the assignment of leases and rents was assigned from the CDA to Nassau County in 2001. The County intiated a foreclosure action against the OHBD, the CDA, and others for the mortgage debt due and owing plus back taxes in 2006.
On July 9, 2006, the New York Times wrote an article about 100 Main Street entitled: "Development; 2 Visions Vie in Hempstead for Former Bus Terminal".The article describes the two competing concepts for future development of 100 Main Street. The OHBD proposed install commercial tenants on the first two floors and sell the development air rights to build 80 condominiums above. The Village of Hempstead, by the CDA proposed to demolish 100 Main Street and build a 420 unit condominium structure. In addition, on the surrounding properties that are owned by the Village the proposal contained the construction of a performing arts center, a multi-story parking garage, and an expanded library. However, the Village's plan is meaningless as long as the OHBD hold title and development rights to the property.
The OHBD, which is still the title holder, recently brought an lawsuit against the CDA,the Village of Hempstead and others alleging tortious interference with their economic relations. The OHBD claims that when a new mayor took office in 2005 he made it plain that he had his own ideas for 100 Main Street. After he took office B.O.C.E.S. cancelled a lease that it had entered into, that Nassau University Medical Center cancelled a planned clinic in the building; and that the Village had made it impossible to refinance and pay off the HUD loan. They allege that their present financial situation is the result of the Village's intent to take title to their property.
Apparently, the real losers in this battle are the charitable organizations and small community groups that work so hard to benefit their neighborhoods. They have a difficult enough job without losing their funding. In point of fact, just a few weeks ago on January 19, 2007 a 15 year old boy was murdered in the playground of Hempstead High School by robbers. I think the Town of Hempstead should supply emergency funds to these groups until the matter is settled.
It is this writer's humble opinion that the proper venue for these groups is not the Nassau County Legislature, but the Judge who is handling the foreclosure matter. I think that the funds are being withheld by instruction of the receiver who was recently given the authority to collect monies owed to 100 Main Street. For some reason the receiver is going after monies that are supposed to be held and disbursed by the CDA. I also think that there just might be a better way to plan the future of our urban hubs.
On Thursday, February 14, 2008, Joye Brown writes a column for Newsday on the subject of 100 Main Street. Ms. Brown claims that the money for the community groups and money for the OHBD to pay the mortgage is being held up by Nassau County because the CDA refuses to give the money to OHBD. She claims that Mr. Gooding explained this to the Nassau County Legislature. I attended the legislative session and my memory is that Mr. Gooding stated that he did not know why the money was being held up by the County. Secondly, if Ms. Brown is correct, then it is true that the CDA for the Village of Hempstead is interfering with the economic rights of the OHBD by not allowing them to receive money that would take the building out of foreclosure.