By Norman Gersman
The volunteer civic organization known as the "100 Black Men" that has over 100 chapters in cities around America was started in 1963. Its main purpose is to provide the solidarity within the African American community necessary to help educate and empower children and teenagers. The organization seeks to improve the quality of life for African Americans and other minorities. To that stated end the local chapter, known as 100 Black Men of Long Island funds endowments at several local colleges, sponsors mentoring programs, and seeks to provide direction for minority youth in their economic development. The walls at their office in the Village of Hempstead are covered with awards and certificates of appreciation for their volunteer work that dates back many years.
I previously wrote an article on how this organization purchased the former bus station in Hempstead at 100 Main Street under the name 100 Black Men of Long Island Development Group from the Community Development Agency of the Village of Hempstead in 2001 for eight million dollars. This Development Group is exempt from paying any federal income tax pursuant to 501(c)(3) of the Internal Revenue Code as long as any profit it receives is devoted to grants or endowments in furtherance with its community goals. You can read it again by clicking on this link. The building is in foreclosure for non-payment of a HUD mortgage and property taxes for which the Village of Hempstead is a guarantor. I explained in my previous article that the court appointed a receiver for the building who was holding money from the Village (because it is a guarantor of the mortgage) that was supposed to fund charitable and local community organizations.
The building at 100 Main Street is the centerpiece of downtown Hempstead. It languished for many years, and its revitalization was always seen as the linchpin of the downtown recovery and improvement. But no more. A lot has gone on and is going on in the Village of Hempstead. The latest is a proposed Master Plan favored by our County Executive Thomas Suozzi, Mayor Wayne Hall of the Village of Hempstead, and the Community Development Agency Commissioner Claude Gooding. On December 11, 2007 the three headed a community "Visioning Meeting" calling for a large area to be demolished and the construction of 3000 luxury (yes, luxury...the Village of Great Neck wants to build work force housing and the Village of Hempstead only plans to construct luxury housing...go figure). This plan calls for the demolition of 100 Main Street along with many other area buildings. Of course, making the plan a reality would be much easier if 100 Black Men of Long Island Development Group did not own 100 Main Street and the building could be taken by eminent domain for nothing by the Village.
As I stated before, the building is in foreclosure for non-payment of the mortgage and taxes. One of the main principles of a foreclosure action, which is an equitable action, is that the debtor has the right to keep the property by coming up with the money to satisfy the judgment of foreclosure right until the gavel falls on the auction day. If you are in foreclosure you always have the right to redeem your property until it is auctioned off. If a judgment of foreclosure has not yet been entered and the debtor wants to pay the debt owed, then the creditor is obligated to inform the debtor exactly what amount is necessary to be paid. Like a mortgage payoff letter.
Last July, The 100 Black Men of Long Island Development Group received a commitment letter for more than a 12 million dollar mortgage that would satisfy the HUD mortgage that it defaulted on. Nassau County has ignored requests for an exact payoff figure and continues its foreclosure action. I have been told that Nassau County's Office of Economic Development, headed by Deputy County Executive Patrick Duggan has been stalling this process since last July. I would like to know why. If the mortgage is satisfied, then the Village of Hempstead is off the hook as an guarantor resulting in the receiver releasing any and all funds due to the community organizations and charitable groups. So one would think that the Village of Hempstead would aid and assist the 100 Black Men group in obtaining a payoff figure, or does the Village have other goals in mind ?
Secondly, I would like to know why this building, 100 Main Street, is paying over a half million dollars a year in property taxes. It is situated in an area of urban decay and it was sold to the the 100 Black Men of Long Island Development Group, an IRS 510(c)(3) organization, as a run down fixer upper that was mostly unoccupied with the proviso that the offices be rented to community groups, charitable organizations, minority start-ups, and businesses that provide lower income employment opportunities. So a building in need of millions in repair and upgrades, sitting in the middle of a blighted high crime area is supposed to pay over $500,000 annually to Nassau County and pay a mortgage at the sametime. I'll bet you that if we walk around that neighborhood almost every other office building has a major tax break. You know what? In this writer's opinion, the 100 Black Men group were "BAMBOOZLED" into purchasing a run down building for 8 million dollars without receiving a property tax break; are still being "BAMBOOZLED" by the County Assessor; and are going to be "BAMBOOZLED" right out of their title to this building because Mr. Levinson won't give them a nickel break.
Thirdly, an audit has been conducted thoroughly reviewing the income and expenditures of the 100 Black Men of Long Island Development Group Corp. since the building was purchased. I ask that the results of this audit be made public so that any allegation of misuse of building income be dispelled.
Fourth, Mr. Claude Gooding is the Commissioner of the Community Development Agency of the Village of Hempstead. The Agency itself states that its major focus is the acquisition and "rehabilitation of both residential and commercial sectors of the Village of Hempstead". I presume that this is a full time position. But a quick look at the internet shows that Mr. Gooding also heads an organization named GMG Ventures as its licensed real estate broker and Chief Executive Officer. In addition, he is named as the listing agent for many properties in Brooklyn. Let's review, he is the head of a the Community Development Agency and an active real estate broker... no one sees a potential or real conflict of interest or question that he is giving his full, one hundred percent effort for the Village ?
Lastly, two major potential tenants: B.O.C.E.S. and the Nassau University Medical Center were interested in leasing large areas of the building but withdrew. In point of fact, B.O.C.E.S. had already signed a lease and had it cancelled. The Nassau University Medical Center was very interested in constructing a large clinic in the building. It is a great location for a clinic because it is so close to the main bus terminal. It is an easy destination for the many poor patients who do not own a car to get to from anywhere in Nassau County. But that deal also was not consumated. In their court papers the 100 Black Men of Long Island Development Group Corp. claim that these potential tenants were forced to back out of their deals to make sure that the building was not earning enough to pay the mortgage and taxes tortiously damaging the owner. This element should be fully litigated before the foreclosure matter proceeds.
100 Main Street is just one building of many that is supposed to give way for the great "Master Plan" promoted by County Executive Suozzi and the Mayor of Hempstead. But their project to construct luxury condomiums will not succeed unless the current property owners and the residents of the Village are treated with respect and fairness. The heavy handed manner in which the Village of Hempstead and Nassau County are treating the owner of 100 Main Street, in their failure to communicate and the excessive taxation of the building, is not a good sign for the many other property owners that will be affected by the Master Plan.