We’ve reserved grill #7 (with some use of grill #5 too) for a community-style BBQ on July 4th. As always, this will be a privately-funded event. We hope that those participating will contribute food and drinks to be shared out; as much as you can comfortably spare. Those that can’t contribute are still welcome to share until the food runs out. We don’t know how many people will be out there so bring folding chairs if you have them. If you have coolers with ice, please bring those too. We’ll try to accommodate everyone but there’s only so much we can cook at any given time. Come prepared to enjoy the sun and we’ll do our best.
Fikret Deljanin (our general manager) and Larry Vitelli (from Douglas Elliman) have donated their own money to rent an inflatable bouncer to be setup on the lawn from 2-5pm. Along with the bouncer will be a cotton candy machine! Gennady Rotberg, John Shkolnik, Eugene Lyubronetsky, and Tony Donadio (our Director of Operations) have donated their own money to buy two decently-sized inflatable pools for children to play in on weekends and holidays.
Absolutely ZERO of Luna Park’s money is being used for any of it.
See you outside!
Luna Park’s Board of Directors and Management
For ten years the facades have been an unresolved topic. During that time Luna Park spent millions of dollars on scaffolding, engineers, architects, lawyers, failed as-needed patching, and very heavy fines for not repairing the violations. Not thousands of dollars, millions. Wasted. No one set out to waste the money; it happened because people held out for the perfect solution instead of figuring out which was the best possible and seeing it through. This board doesn’t claim to be smarter than those that came before it and we began with the same arguments and distrust. We are proud to have found a way to put aside our differences in order to find the best possible solutions to every problem we face, big or small. You can see the results and there are more to come. Our intention is to make Luna Park a better place to live whether we’re talking about a picnic area, dog runs, a gym, a pool, enhanced security, more parking, or something more. We also intend to find ways for Luna Park to make money to help offset future costs and pay for other conveniences we may want.
On Monday, June 28th, Luna Park closed on the majority of our project financing. We borrowed $47mil from Wells Fargo at a rate of 6.69% over 30 years. The city converted $4.93mil we owed them into a forgivable loan we no longer have to pay and also gave us $9mil at closing plus another $2mil (written and signed guarantee) to be delivered no later than March 2011. The $9mil we received included $1mil from city councilman Domenic Recchia. We still have outstanding promises in the form of $1mil from state senator Diane Savino, $2mil from state representative Jerrold Nadler, and $2mil from Brooklyn borough president Marty Markowitz which all intend to see honored. Despite the tremendous accomplishment this sum of money represents, we still continue to pursue money from other sources.
In a perfect world our buildings would’ve been built flawlessly and we could’ve all gone private and gotten fair market value for our equity but we do not live in a perfect world. We do feel it was the best deal possible; the amount of free money granted is a city record and we are now firmly committed to an additional thirteen years in Mitchell-Lama. Instead of ending in 2017 it will be 2030. If you divide $21mil by the extra 13 years you get over $1.6mil per year. It certainly beats the last time Luna Park signed a Mitchell-Lama extension of 15 years for $1.25mil which came to $83k per year. $1.6mil now vs. $83k then…quite a difference.
For the record, the final board votes to close on the financing and free city money were all in favor except Tatyana Yezerskaya opposed. Eugene Lyubronetsky was unavoidably absent but has asked to be considered on the side in favor. You should hold us all accountable for everything we’ve done and will do. We know not everyone will agree with our decisions — and some will be very angry — but each of us has been asked to make what we feel are the right choices for Luna Park and that’s all we can do. Problems look different when you are deciding for others instead of only yourself.
Luna Park’s Board of Directors
We’re considering buying one of those large inflatable pools to put on the picnic lawn for the kids to play in on the summer weekends and holidays but we’d prefer to raise the money privately. The prices go up to around $750. Are there any parents reading this that would be willing to donate toward such a thing? We could maybe find a way to make it tax-deductible by involving our local synagogue.
Going forward, we will allow standalone table reservations for people who want to bring their own grills. All our grills are odd-numbered so all odd-numbered tables are tied to their grills. That means if you reserve grill #1 you’re also getting table #1. All the even-numbered tables will be available for standalone reservations.
Latest meeting minutes posted for May, 5, 2010.
You will all see it in the minutes but we had a very interesting (and long) meeting tonight with some exciting topics. Eugene Lyubronetsky has been working hard on putting together a gym proposal for Luna Park using Warbasse as the example. I personally didn’t think a gym was possible but Eugene proved me wrong and I’m happy he did. Not only is it possible but it’s profitable! Last year’s board paid to have architectural plans made for a new parking lot that would add 96 spots. We voted tonight to put it out to bid. We’ll have details once we get bids back on both of those. We also had presentations from four vendors on magnetic card access systems like those used in Trump and Oceana. We liked the one that did Trump’s and are currently working out the budget for it.
It seems likely all three of those things will become a reality this year.
There were no better answers to our current situation. There’s no way for us to know who to charge and who to credit; it’s a problem we inherited. People may like having their utilities rolled into their maintenance but this is the disadvantage right here. No one can figure out how to do the job sub-metering would do for us. The other big confusion was why tenants are getting a $15 charge and $40 credit at the same time for each a/c unit. The answer is in the previous blog post’s spreadsheet picture but the simple explanation is as follows:
Each year on January 1st, you agree to pay Luna Park $180 for each a/c unit you’re going to put in. Although Luna Park lets you pay in twelve installments, the $180 number is what matters. Pretend that you paid it all up front because it’s treated as if you did. That’s how much management expect that unit’s electricity to cost (which is very very low for the real world). The board worked out that if you’re forced to remove your a/c for all four hot months, you will get back $40 each month for a total of $160. That means on December 31st of that same year, you will have paid $180 and gotten back $160. That leftover $20 was for the other eight months you had the a/c line at $2.50 a month. Again, very very cheap.
That’s it, that’s why you get a charge and a credit at the same time. You have to pay that $180 over the whole year even though you will end up getting back $160 when it’s done. We know that it’s no substitute for air conditioning but there’s nothing we can do about that.