Village View parking lot sale moves forward as shareholders raise financial questions

EVG file photos by Stacie Joy

The proposed sale of a parking lot at Village View is moving into another phase, even as some shareholders continue to question the co-op's finances and the process surrounding a potential deal. 

At an Oct. 20 Zoom meeting of the Village View board of directors, board president Christine Hadlow announced that the board had accepted bids from two developers, according to a report from the resident-run VillageViewCommunity.com. 

The developers are now expected to begin due diligence, which typically involves inspecting the property and reviewing financial and other information before a possible transaction. 

The property in question is Parking Lot 7, on Second Street between Avenue A and First Avenue, part of the 1,236-unit Mitchell-Lama cooperative.

As EVG reported in June, the board voted in January to hire Alan Cohen of ABS Partners to market the lot to prospective residential developers. 

The possibility of a sale has generated differing opinions among shareholders. Some see an opportunity to generate revenue for the aging cooperative and help pay for future capital improvements. Others have questioned the decision-making process, the potential loss of parking and whether any new development would include affordable housing. 

More recently, some residents have sought additional financial records to better understand a reported $15.7 million decline in Village View's reserve fund. The resident-run website says a Manhattan Supreme Court proceeding seeking access to the co-op's books and records remains unresolved. The decline has become a point of contention among shareholders, although the information provided does not establish what accounted for the change in reserves. 

The latest developments come ahead of Village View's board election, scheduled for Nov. 11, when five seats are to be filled. A candidates' night was scheduled for last night (Monday), allowing residents to hear from those seeking seats on the board. 

Meanwhile, management distributed a notice on Oct. 23 titled "Protect Your Shareholder Voting Rights," encouraging residents to report any intimidation or threatening behavior related to the election. 

The notice has prompted questions from some residents about why it was distributed. No specific incidents or election irregularities were identified in the information provided to EVG.

For now, the potential sale remains under consideration, with questions about the property's future, the co-op's financial needs and shareholder participation still to be resolved.