Manhole explodes and catches fire in the East Village https://t.co/M3VX42WmdZ pic.twitter.com/nyQVaSkiBI
— Eyewitness News (@ABC7NY) December 22, 2017
Con Edison responded to the scene and they say that no one was injured and there are no outages as a result of the explosion.
They are now making repairs.
So far, it's not yet known what led to the explosion.
A festive group of holiday carolers from the TTC (Tenants Taking Control, formerly the Toledano Tenants Coalition) visited the Midtown offices of Madison Realty Capital on Monday morning. But the songs they sang were much more ironic than celebratory.
"Madison is Coming to Town" was sung to a familiar tune, but featured such lyrical enhancements as "♫ They’re making a loan ♪ They’re raising the price ♪. They’re funding a landlord who’s not very nice ♫ Madison is coming to town ♪"
In 2015, Madison Realty loaned $124 million to Rafael Toledano, a 25 year old with no track record as a landlord and a conviction for aggravated assault, so that he could buy a "portfolio" of 15 buildings in Manhattan, mostly in the East Village.
Through demolition that generated lead dust, outright neglect of the properties, aggressive buyout offers and threatened lawsuits, Toledano removed about a third of the 450+ rent-regulated tenants from those buildings before defaulting on Madison's loan and then facing foreclosure in February 2017.
On Monday, the group of remaining tenants also sang "I Had a Little Landlord" (to the tune of "I Have a Little Dreidel"). One verse went: "♪ I had a little landlord ♫ He bought the place one day ♪ He got a check from Madison ♫ And then he couldn’t pay! ♪"
The LLCs once controlled by Toledano staved off the foreclosure in March 2017 by each declaring bankruptcy. Through bankruptcy court, control of the buildings was given over in April to Silverstone Properties, the property management arm of... Madison Realty Capital. If you think that sounds kind of circular, you're not alone. It's a bit like singing a round.
In May 2017, the New York State Attorney General's office filed a massive objection (PDF here) and declaration, accusing Madison Realty Capital of practices “Consistent with a Predatory ‘Loan to Own’ Business Model.” The filings dissected the striking irregularities of the deal. Among other oddities, it references...
• "fatal flaws" in the underwriting of the loan, as evaluated by the NYC Department of Housing Preservation and Development. • clear evidence that Signature Bank (an investor in the loan) foresaw that Toledano would default, and that Madison was well positioned to take over the properties.
• floor plans for the apartments that show newly-added, windowless bedrooms, which are illegal in NYC.
Bankruptcy court hearings regarding the case have been repeatedly postponed by Madison since the AG and the DHCR's Tenant Protection Unit publicized through its filings that the ongoing investigation of Toledano had been expanded to include Madison.
On Monday morning in Midtown, Santa Claus himself made an appearance. He had a special gift for the principals of Madison: Gift-wrapped little sacks of coal. Bellowing loud enough to (possibly) be heard on the 37th floor, he pronounced that the company had been naughty.
Customers, Neighbors, and Friends,
For the past three years, GG’s has proudly served the East Village with the highest quality of pizza, drinks and service possible. We are grateful for the many meals and memories that you have shared with us.
After much consideration, we have decided to hand over the keys to 511 East 5th St to a new owner and operator.
This means that GG’s will close its doors permanently on Saturday, December 23rd.
We are proud of the success that GG's has seen over the years, and we're excited for what our individual futures hold.
It has been a joy to serve our friends and neighbors every day...
Today, we are forcing notorious NYC landlord Steve Croman to pay $8 million in restitution to his tenants—the largest-ever settlement with an individual landlord. https://t.co/p7zQSdEfa0 pic.twitter.com/gViuoiMFg8— Eric Schneiderman (@AGSchneiderman) December 20, 2017
New York Attorney General Eric T. Schneiderman announced an unprecedented settlement with Steven Croman ... for engaging in illegal conduct, including harassment, coercion, and fraud, to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units.
The consent decree requires Croman to pay $8 million into a Tenant Restitution Fund – the largest-ever monetary settlement with an individual landlord. The settlement also requires over 100 Croman residential properties to be run by a new, independent management company with no ties to Croman, for five years – the longest-ever term for independent management in OAG history. Moreover, the settlement requires seven years of a monitor who will oversee compliance with the terms of the consent decree and provide regular reporting to the Attorney General – the longest-ever monitorship required in any tenant harassment case.
Croman is currently serving one year in jail and paid a separate $5 million settlement as a result of criminal charges brought by Attorney General Schneiderman.
Eligible tenants will be able to apply for restitution; the Office of the Attorney General (OAG) will announce details of a claims process early next year. Tenants will be eligible for restitution if they are or were a tenant in a rent-stabilized or rent-controlled apartment owned by Croman between July 1, 2011 and the date of the agreement (Dec. 20, 2017); they received a buyout of less than $20,000, not including any amount that purported to cover rent or arrears; and no other tenant in their apartment received money from the restitution fund.
The Attorney General’s office will approve both the independent management company and the monitor. The independent management company will oversee operations and institute new policies at the Croman properties to ensure full compliance with the law and correction of all past violations. It will also post a comprehensive set of Tenants Rights in every building it manages.
The monitor will provide quarterly reports to the Attorney General, which will include at minimum any complaints received from tenants and actions taken; the total number of rent-regulated apartments that became deregulated during the reporting period, the reason for deregulation, and all supporting documents; and the monitor’s assessment as to whether Croman has complied with the consent decree.
The consent decree also ensures that Anthony Falconite – another defendant in the Attorney General’s lawsuit whom Croman allegedly referred to as his “secret weapon” in intimidating rent-regulated tenants – will have no interaction with any Croman tenants.
@evgrieve it’s gone. Who knows where who knows when... pic.twitter.com/tQ0qv5fg8X— EdenBrower (@edenbrower) December 20, 2017
[T]he vast majority of the money behind the purchases didn’t belong to [Jared] Kushner or his family. Rather, it came from an obscure Israel-based company called Gaia Investments Corp. and related entities. Gaia has almost no public profile in New York real estate. Its principals have held roles in enterprises owned by the diamond-trading Steinmetz family, with close ties to Raz Steinmetz, the nephew of billionaire Beny Steinmetz.
A 2015 deal for 16 apartment buildings had a similar structure. Again, the Kushners were publicly credited with the acquisition, and again, most of the money belonged to someone else. The investors in this case, not previously reported, were C-III Capital Partners, a Texas-based asset manager run by Andrew Farkas...
From 2012 to 2015, Kushner Cos. purchased more than 40 Manhattan apartment buildings that they still own. In at least 80 percent of them, they’re minority partners to well-heeled investors.
The finding that the company is most often a junior owner heightens concern over conflicts-of-interest a year after Kushner entered the White House. As his family has hunted for investors overseas in countries as far-flung as China and Saudi Arabia, many inside and outside of government worry about the potential for quid-pro-quos — public policy driven by private business. In the partnerships where the Kushner Cos. have minor stakes, there’s pressure to make returns for the investors who put up most of the money.
