Tenants and local elected officials speak out against Icon Realty

[Photo by Grant Shaffer]

Tenant groups, community organizations and local elected officials continue to put pressure on landlords behaving badly in the neighborhood.

Yesterday, it was Icon Realty's turn.

Here's part of the news release that the Cooper Square Committee released:

[On Monday], tenants of two Icon Realty-owned East Village buildings, 445 East Ninth Street and 57 Second Avenue, along with local elected officials and community groups, call on Icon Realty to end their alleged campaign of construction-as-harassment against tenants and to meet the tenants’ demands.

If Icon refuses to do so, the tenants – represented by the Urban Justice Center and Manhattan Legal Services – will file lawsuits against the landlord.

For years now, Icon Realty has been aggressively displacing rent-regulated tenants to make room for ultra-high rent paying tenants. Like other bad-acting landlords, Icon Realty has exposed tenants to hazardous health and safety threats, brought dozens of lawsuits against tenants, and continue to deny tenants their right to live in these buildings without fear of extreme tactics to remove them.

“At the end of the day, we don’t know what we’re coming home to. In two years of bad communication, bad accounting, loss of basic services, cycles of neglect and disregard, we are now accustomed to uncertainty where none should exist,” said Ben Coopersmith a member of the 445 E. 9th Street Tenants Association. “We will demand fair play for our tenancies with Icon Realty Management beyond the glad-handing of their representatives, the unfulfilled promises, even the possibility that they will flip us once the paint dries.”

During a rally outside the Icon-owned buildings at 445 E. Ninth St. and Avenue A and later at 57 Second Ave., Icon tenants announced their demands for proper lead mitigation, safe construction practices, unobstructed building entryways ... and for Icon Realty to respect rent-regulated tenants’ rights.

City Council Member Rosie Mendez and State Sen. Brad Hoylman were among the speakers.


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[Photo by Derek Berg]


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Icon Realty bought the building at 445 E. Ninth St. for $10.1 million in April 2014, according to public records. The storefronts are now all vacant. The Upper Rust was the last to leave after a reported rent increase. Icon took over ownership of 57 Second Ave. in early 2015. Both longtime businesses have closed here too.

The Lo-Down has coverage here, including a statement from Icon spokesperson Chris Coffey.


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Mikey Likes It unveils a new ice cream truck

The truck made its debut yesterday outside the shop on Avenue A between 12th Street and East 13th Street...

Looking good...



By the way, Mikey Likes It turns 2 this May 19.

You can read our two-part interview with Michael "Mikey" Cole here and here.

Thanks to dwg for the photos!

Cellar 58 closed for renovations on 2nd Avenue

Cellar 58, the low-key Italian restaurant on Second Avenue between East Third Street and East Fourth Street, is temporarily closed for renovations.

Signage on the door offers an apology and prompts customers to check in on the restaurant's website for reopening updates...



I've had several nice meals here, and look forward to their return. (And all signs point to an actual closed for renovations, and not a dubious "closed for renovations.")

The return of 'Girls' and the end of the encampment outside Tompkins Square Park

Crews for "Girls" will be filming around parts of the neighborhood today... we spotted the signs along Avenue A and Tompkins Square Park as well as East Houston near Clinton Street. (And probably elsewhere?)

Season five recently concluded on HBO ... and the series will end after season six. So, presumably, this filming is for the last season.

Anyway! Coincidentally (or not), the encampment that had been growing in recent weeks at the entrance to Tompkins Square Park along Seventh Street was cleared out yesterday...

Before (photos via an EVG reader)...





...and yesterday afternoon...

More on the charges against Steve Croman; buyouts were a 'team sport'

Here are more details about the arrest this morning of landlord Steve Croman via the Attorney General's office...

Attorney General Eric T. Schneiderman today announced that Steven Croman, a major New York City landlord with more than 140 apartment buildings across Manhattan, surrendered on multiple felony charges for his role in an alleged scheme to fraudulently obtain several multi-million dollar refinancing loans between 2012 and 2014.

Croman was also named, along with private investigator Anthony Falconite, in a civil suit filed today by the Attorney General’s office for allegedly engaging in illegal, fraudulent, and deceptive conduct in connection with Croman’s real-estate business. The lawsuit alleges that Croman directs an illegal operation that wields harassment, coercion, and fraud to force rent-regulated tenants out of their apartments and convert their apartments into highly profitable market-rate units.

The lawsuit further alleges that Croman deployed Falconite, a former New York City police officer, to frighten and intimidate rent-regulated tenants into surrendering their apartments.

“My message to unscrupulous landlords is simple: if you put your own profits over your tenants’ legal protections, we will investigate you and prosecute you to the fullest extent of the law,” Attorney General Schneiderman said. “My office will not tolerate anyone who attempts to line their own pockets by gaming the system. No one is above the law – no matter how rich or powerful.”

The criminal and civil cases are the result of independent, parallel investigations during the past two years.

Details on Criminal Charges

Based on an extensive investigation by the Attorney General’s office, Croman allegedly submitted false mortgage documents to New York Community Bank and Capital One Bank, including rent rolls that falsely reflected market rate rents for units that were actually occupied by rent-stabilized tenants. Croman also allegedly inflated the amount of rent charged for certain commercial spaces in his buildings in an effort to show greater rental income. Croman allegedly falsified these rent rolls in order to inflate the annual rental income of his buildings, upon which his refinancing terms are partially based.

All told, over a three-year period, Croman allegedly received more than $45 million in loans under these false pretenses.

A grand jury indicted Croman on 20 felony counts, including seven counts of grand larceny in the 1st degree, seven counts of falsifying business records in the 1st degree, one count of scheme to defraud in the 1st degree, four counts of offering a false instrument for filing in the 1st degree, and one count of criminal tax fraud in the 4th degree.

Croman’s mortgage broker, Barry Swartz, also faces 15 felony counts, including seven counts of grand larceny in the 1st degree, seven counts of falsifying business records in the 1st degree, and one count of scheme to defraud in the 1st degree.

If convicted of all counts, Croman and Swartz could face as much as 25 years in prison. The charges against Croman and Swartz are allegations and they are presumed innocent unless and until proven guilty in a court of law.

The Tenant Protection Unit of New York State Homes and Community Renewal provided the Attorney General’s office with a criminal referral that was pivotal to the process.

Details of Civil Lawsuit

The civil lawsuit, filed in New York Supreme Court in Manhattan and the product of an independent investigation, alleges that Croman used the following illegal tactics to push working-class and low-income tenants out of their homes:

• Harassing tenants into surrendering their apartments—and their rights under the rent-stabilization laws—in exchange for “buyouts,” which are often no more than a few thousand dollars or a few months of free rent.

• Incentivizing his employees and agents to obtain buyouts, at the expense of their other responsibilities. Employees allegedly refer to rent-regulated tenants as “targets” and compete with each other to obtain the most buyouts. In one characteristic exchange, Falconite allegedly wrote to a property manager that obtaining buyouts was a “team sport,” to which the property manager responded, “I know that!! Who’s our next target? We have to start lining them up!!!”

• Pressuring tenants into surrendering their apartments by repeatedly filing baseless lawsuits against them. In internal emails, company employees allegedly acknowledged that such lawsuits would “aggravate” tenants or pressure them to accept buyouts. In some cases, Croman’s employees allegedly created a false record for litigation by refusing to acknowledge receipt of tenants’ rent checks and then suing them for unpaid rent—a deliberate fraud upon the court.

The lawsuit also alleges that Falconite, whom Croman allegedly refers to as his “secret weapon,” used deceptive and frightening tactics to intimidate rent-regulated tenants. The lawsuit alleges that Falconite’s text messages with property managers show that he regularly uses false pretenses to gain access to tenants’ apartments, often posing as a repairman or building manager. For example, in text messages to a property manager, Falconite allegedly agreed to use “false pretenses” and pretended he was with the construction department.

The lawsuit alleges that Falconite routinely threatened tenants and improperly accused them of violating their lease. He also allegedly abused his position as a former NYPD officer to threaten and intimidate tenants.

In addition, the lawsuit alleges that Croman, in his rush to flip vacant rent-regulated apartments into high-rent units, presided over a disturbing pattern of illegal and hazardous construction. The lawsuit alleges numerous examples of illegal construction, including the following:

• On at least 175 occasions, Croman’s companies allegedly performed construction without obtaining permits.
Croman allegedly regularly directed his employees to flout stop-work orders and conceal unlawful construction from Department of Building inspectors.

• Croman allegedly filed false documents with the Department of Buildings on dozens of occasions in an attempt to avoid stricter oversight of his construction projects and elude tenant protection measures.

• Croman and his companies allegedly violated lead-safety laws repeatedly, exposing numerous tenants to lead-contaminated dust. On more than 20 occasions, the Department of Health (DOH) found impermissibly high levels of lead dust in Croman’s buildings, including levels up to 65 times the legal threshold.

• Croman allegedly defied DOH orders to address the lead hazards. On one occasion, after DOH order Croman to stop all work and begin lead-abatement measures, Croman directed his property manager to postpone the lead abatement so that the construction could continue.

Read the full release here. As previously noted, Croman owns more buildings in the East Village than any other landlord.

More shade arrives for Cooper Square

Another sign of progress today in the ongoing Astor Place/Cooper Square Reconstruction Project... workers started planting new trees around the plaza area of Cooper Square as the above photo via EVG reader Mona W. shows.

As for when Astor Place's more famous tenant, the Alamo, will return... we now hear late May/early June. Workers packed up and carted off The Alamo for the duration of the reconstruction back on Nov. 25, 2014.

Here's a link to a weekly bulletin (PDF), noting what's happening this week.

The anticipated project completion date is now summer 2016, according to the reconstruction newsletter (PDF here).

Previously on EV Grieve:
The Alamo returns to Astor Place this Halloween

Five years later, Astor Place apparently ready for its 2-year reconstruction project

This is what it might be like living inside the Alamo on Astor Place

RIP Tony Rosenthal, the sculptor who created the Astor Place cube

The Alamo has been away from Astor Place for 1 year now

The all-new Astor Place is coming along (for real)

Other Music is closing for good next month

Ugh.

Via the Other Music website:

It is with heavy hearts that we share the news that after more than 20 years in New York City, Other Music will be closing our doors on Saturday, June 25th. It’s been an incredible run for us, and we cannot thank you enough for the support and inspiration that you’ve given us over these past two decades. We’ve learned so much from you and are so grateful to have had your trust, curiosity, and passion as we’ve discovered and explored so much great music together since we first opened back in December of 1995. Times have changed, and soon we will be moving on, but in the coming weeks we hope you’ll come by and see us, dig through our racks, and reminisce about what has been a truly special era for all of us. We’ll also be announcing more events and celebrations soon, so stay tuned. Once again, thank you, from the bottom of our hearts.

The store's label, Other Music Recording Co. will continue.

Per The New York Times:

“We still do a ton of business — probably more than most stores in the country,” said Josh Madell, 45, a co-owner of Other Music, from behind the counter last week. “It’s just the economics of it actually supporting us — we don’t see a future in it. We’re trying to step back before it becomes a nightmare.”

Business has dropped by half since the store’s peak in 2000, when it did about $3.1 million in sales, said Chris Vanderloo, who founded the shop with Mr. Madell and Jeff Gibson after the three met as employees at the music spinoff of Kim’s Video in the early ’90s. (Mr. Gibson left Other Music’s day-to-day operations in 2001.)

Rent, on the other hand, has more than doubled from the $6,000 a month the store paid in 1995, while its annual share of the building’s property tax bill has also increased with the local real estate market.

The store is located on East Fourth Street between Lafayette and Broadway.

Taking in Mercury's trip across the Sun from 2nd Avenue

As previously noted, local astronomy buff Felton Davis was out at his usual spot on Second Avenue and East Third Street this morning ...



Today's event was the rare transit of Mercury across the face of the sun...EVG regular jdx shared these photos... Felton used a very thick filter to reduce the bright light of the sun for safe viewing...






[Photo by Steven]

The transit of Mercury across the sun only occurs about 13 times in a century.

[Updating] Steve Croman hit with 20 felony charges; faces 25 years in prison

Controversial landlord Steve Croman, whose 9300 Realty owns multiple residential buildings in the East Village, "was busted" this morning, according to the Post.

The precise charges against Steven Croman weren’t yet clear, but the state attorney general’s office is expected to file a Manhattan civil suit today accusing him of unlawfully deploying a former NYPD cop to harass and coerce rent-stabilized tenants into vacating their apartments, said a source close to the investigation.

State Attorney General Eric Schneiderman is expected to announce the charges against Croman this afternoon.

Updated 10:45 a.m.

The Daily News reports that Croman has been arrested.

And the Daily News was first with the report.

EXCLUSIVE: Landlord arrested after threatening, trying to force out rent-stabilized tenants https://t.co/HvT4xg0fUi pic.twitter.com/EWFCYRHK4y

— New York Daily News (@NYDailyNews) May 9, 2016

Updated 12:45

Here is The New York Times with the details:

Mr. Croman’s business came to embody in many ways how rent regulations have eroded in the city, putting housing out of reach for more and more New Yorkers. He was able to deregulate most of his rent-stabilized apartments within just a few years of buying the buildings, enabling him to reap much higher rents.

On Monday morning, though, his fortunes took a different turn. Mr. Croman, 49, turned himself in around 7 a.m. at the First Precinct in Lower Manhattan. He was charged with 20 felonies, including grand larceny, criminal tax fraud, falsifying business records and a scheme to defraud, relating to accusations he inflated his rental income to secure more than $45 million in bank loans. He faces up to 25 years in prison. His mortgage broker, Barry Swartz, 53, was charged with 15 felonies.

The New York State attorney general’s office, which investigated Mr. Croman for almost two years, also sued Mr. Croman on Monday, seeking to force him to give up his real-estate business and pay millions of dollars in restitution to tenants and penalties.

Updated 3:45

The folks at Bruno Pizza on East 13th Street between Second Avenue and Third Avenue have a Croman-related special tonight...

Toast karma! Free glass of rose tonight if u mention @nytimes Steve Croman article ow.ly/8dCh3003had

A photo posted by Bruno (@brunopizzanyc) on May 9, 2016 at 11:39am PDT

Previously on EV Grieve:
Report: Steve Croman facing another lawsuit from East 8th Street residents

Report: East 8th Street residents sue landlord Steve Croman, allege intimidation, harassment

Watch a lot of people speak out against Steve Croman and 9300 Realty

Report: State Attorney General launches Steve Croman investigation

Tenant advocacy group names Icon Realty and Steven Croman among NYC's worst landlords

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

[EVG file photo of 233-235 E. 5th St.]

Last month, we shared a letter that the Toledano Tenants Coalition wrote to elected officials about their ongoing concerns with the demolition taking place in properties run by Brookhill Properties and its founder and principal, Raphael Toledano.

To date, three of the buildings, 235 E. Fifth St., 233 E. Fifth St. and 514 E. 12th St., were said to have elevated lead levels in common areas, according to the City’s Department of Health and Mental Hygiene (DOHMH).

On Friday, the elected officials — led by State Sen. Brad Hoylman and Manhattan Borough President Gale Brewer — blasted Toledano for unsafe living conditions, including prolonged exposure to lead dust.

"I’ve heard from scores of constituents about the harassment they’ve endured in Toledano buildings. And now we’ve learned their health is at risk, too, because of dangerously high levels of lead dust," Hoylman said in a statement. "The situation is outrageous and unacceptable. Mr. Toledano needs to remedy this immediately."

In response, the DOHMH has promised to inspect all of Toledano-owned buildings for possible lead dust contamination. (He closed on a 16-building portfolio in the neighborhood last fall.)

Construction-related issues aside, tenants continue to report feeling harassed by Brookhill.

"Many long-term residents of rent-regulated apartments have been served with frivolous legal actions that require them to hire lawyers even though it has been clear that the actions would not make it to court," said Nina d'Alessandro, a resident of 231 E. Fifth St. "Then they have been approached with low buyout offers. We have tried to meet with Mr. Toledano to express our concerns and request that our rights to health and homes be safeguarded, only to be evaded and met with more intimidation."

The letters from the elected officials to Toledano and the Health Department are below. The letters were signed by Hoylman and Brewer; Assembly Members Deborah Glick, Richard N. Gottfried and Brian Kavanagh; and Council Members Corey Johnson and Rosie Mendez. Congresswoman Carolyn Maloney signed the letter to DOHMH.

A spokesperson for Brookhill told the Daily News that any health and safety issues brought to its attention will be immediately remedied.





Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

More about alleged harassment and landlord visits via Brook Hill Properties

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

The Villager looks at landlord Raphael Toledano's criminal past

An open letter to landlord Raphael Toledano from the Toledano Tenants Coalition

Report: Management company sues Raphael Toledano for backing out of $130 million loan

Ongoing concerns about demolition work and elevated lead levels in Toledano-owned buildings

Updated: The new Mamoun's opens tomorrow now on St. Mark's Place

[The new location]

As we first reported back in December, Mamoun's is moving from their longtime home at 22 St. Mark's Place between Second Avenue and Third Avenue to No. 30 a few storefronts to the east.



And today tomorrow is the grand opening.

The owners of the 45-year-old falafel joint, who signed a 10-year lease, double their size to 1,400 square feet with the move.

The previous tenant at No. 30, Red & Gold Boil, closed after 13 months in business in early October.

Updated 10:30 a.m.



H/T Steven!

Previously on EV Grieve:
Mamoun's Falafel is moving on St. Mark's Place

Without a liquor license, Dahlia's decides to close for now

Back in February, the SLA temporarily suspended Dahlia's liquor license after serving a reported 50 minors one night.

Since then, we haven't seen many, if any, diners inside the Mexican restaurant on Second Avenue at East Fifth Street ... even with meal deals that include a soft drink.

So, for now, Dahlia's has closed until the liquor license issue is resolved, as the sign out front shows...



Patrons are directed to their sister establishment, a tapas bar on East Ninth Street.

According to the Post, officers from the 9th Precinct a half block away found the exits at Dahlia's locked "and more than 40 well-heeled teens — one only 15 years old — quaffing 'monster margaritas' and mojitos" one night in January.

Said SLA Chair Vincent Bradley in a statement: "In addition to demonstrating a total disregard for the law by blatantly catering to minors, this licensee further jeopardized the health and safety of these young patrons by crowding them into a locked bar to avoid detection by law enforcement."

On Feb. 12, the SLA charged Dahlia's with 55 violations, including 50 separate sales to minors, failure to supervise, and code violations for exceeding maximum capacity and having locked doors. The licensee, named as Huascar Then, was also arrested.

Previously on EV Grieve:
Report: Dahlia's busted after cops find 43 minors drinking inside locked restaurant

More about the underage drinking bust at Dahlia's; plus, reaction from NYU students

Vacancy Project bringing hair, art and coffee to East 10th Street

There's something new in the works at 249 E. 10th St. between Avenue A and First Avenue...



As the sign shows, the small space will serve as a hair salon, coffee shop and art gallery...



Here's more about the Vacancy Project via their website:

Studio/Hair salon inspired by 60’s Andy Warhol’s “THE FACTORY”.

Also an Online journal featuring photography, music, and art by and for creators.

The creative director is Masami Hosono, a hair stylist who started her career in Tokyo in 2007.

The space opens on May 16... with the salon to follow in early June.

The previous tenant was Kai Yue Chinese Tui-Na Salon, a no-frills massage studio.

Confectionery now open on East 9th Street

Confectionery, a vegan chocolate shop and bakery, is now up and running at 440 E. Ninth St. near Avenue A.

As we noted last month, the retail shop is a collaboration between New Paltz-based vegan chocolate company Lagusta’s Luscious and bakery Sweet Maresa's.

EVG regular Scuba Diva stopped by on Friday and took a few photos of the small space...





Scuba Diva notes that the shop carries one of the signature treats from Lagusta's Luscious: Furious Vulvas.



Confectionery, which opened this past Thursday, also features macarons made by Maresa Volant. "The macarons are vegan, and since they're meringue-based cookies, they're pretty much a rarity, although a few bakers are featuring them now."

In any event, Scuba Diva is pleased to have a high-quality vegan confectioner in the neighborhood. "When you are vegan and everywhere you look the chocolate contains dairy ... you kind of do a little happy dance when you find someone who speaks your language."

The previous tenant in this space, Makki Deli & Grocery, closed in December after nine months in business. The Makki sign remains up for now.

Previously on EV Grieve:
Confectionery, a vegan chocolate shop and bakery, coming soon to 440 E. 9th St.

Where you can watch the transit of Mercury tomorrow

Local astronomy buff Felton Davis passed along the following...

The forecast for tomorrow is partly cloudy, so we will just have to watch the skies for an opportunity to witness the transit of Mercury across the face of the Sun. Mercury will begin crossing at 7:13 in the morning, reach the mid-point at 10:57 am, and conclude at 2:42 in the afternoon.

I hope to show it for a couple of hours in the morning, take a lunch break, and then resume showing at 1 pm. My usual location at Second Avenue and East Third Street, or down at First Street by the F Train stop if the buildings are getting in the way of the sun. And yes, a very thick filter will be in place to reduce the bright light of the sun — that is the only safe way to view this unique event.

Here's more via an article in The Miami Herald.

[Updated] Found cat on East 8th Street

An EVG reader found this apparently lost (and hungry) cat in the Firemen's Memorial Garden on Eighth Street between Avenue C and Avenue D.

You can contact us via the EV Grieve email if this is your cat...

Updated 4:30 p.m.

And AJ is missing... details on the flyer...

At the 2016 NYC Cannabis Parade

EVG contributor Stacie Joy was in Union Square yesterday for the annual parade.

Here's more from a report today in Crain's:

Known until a few years ago as “Cures Not Wars,” and now as the NYC Cannabis Parade, New York’s annual rally in support of legalization has been held in various forms since the early 1970s. This year, the event culminated in a gathering at Union Square. As blunts and pipes were passed around, speakers attempted to educate the crowd about the Marijuana Taxation and Regulation Act (S. 1747/A. 3089A) that is currently stalled in the state legislature.

“We’ve been doing this for four decades. If we don’t get involved and do the hard work, it’s not going to go anywhere,” said Doug Greene, legislative director of Empire State NORML, the New York chapter of the National Organization for the Reform of Marijuana Laws. “Just coming here and listening to me speak and getting high is not going to change anything.”

Some would say the fact that the NYPD did not seem interested in arresting anyone who was getting high at the event was a major shift in and of itself. Although the NYPD cut its marijuana arrests in half last year, 16,590 people were still cuffed for low-level marijuana possession, about 88% of whom were black or Latino.

New York has launched a medical-marijuana program, with one of the dispensaries located nearby on East 14th Street. Dennis Levy, a lifelong marijuana legalization advocate, called the New York program "frustrating and flawed."