By Nicole Falco
A lawsuit was filed on Dec. 30 to stop the proposed sale by the village of the 24-space parking lot on East Lincoln Avenue, off Rockaway Avenue, to 1 East Lincoln Corp.
The Article 78 proceeding -- the suit's legal designation -- was filed by Bill Freda, Mary Salg and Tom O'Neil along with Richard Konrad and the East Valley Civic Association. They joined 10 East Realty LLC, the owners of 10 East Merrick Rd., as plaintiffs in the suit, which names the village, Mayor Edward Cahill, the board of trustees, Village Clerk Vinny Ang and 1 East Lincoln as defendants. The rear of the building at 10 East Merrick Rd. partially faces the lot.
The plaintiffs allege that the Dec. 9 decision by the Village Board to adopt Local law E, authorizing the village to "enter into a purchase money mortgage with 1 East Lincoln Corp. in the sum of $275,000 for 15 years at five percent per year" to purchase the parking lot, was "an abuse of discretion" and an illegal action.
Jordan Hyman, attorney for the plaintiffs, alleges on behalf of his clients that it is illegal for the village to enter into a purchase money mortgage with a private entity, and that a downpayment should have been required. Furthermore, Hyman alleged that the five percent interest rate is at least three percentage points below the market rate and that the $275,000 price of the lot is based on a three-year-old appraisal.
In addition, the plaintiffs allege that the lot is a public trust property and can't be sold to a private entity without state approval, and that the lot is not surplus, as the village has stated, but rather is a valuable asset to the tenants of 10 East Merrick Rd. as well as local residents and merchants.
The village board voted last spring to sell the lot for $275,000 to B&B Coverage Ltd., a property and casualty insurance company whose financial services division has offices in Valley Stream and Lynbrook, doing business as 1 East Lincoln.
As far as the village is concerned, the sale of the lot to B&B is contingent on the purchase and development of the Knights of Columbus Father Thomas F.B. Carroll Hall, which is adjacent to the lot. Once the purchase of the K of C hall and the adjacent lot is complete, B&B hopes to combine its two offices.
Last Sept. 17, the Zoning Board of Appeals voted unanimously in favor of the company's request for a variance to carry out its proposed renovations, which include an atrium.
The mayor, Zoning Board trustees and Village Board trustees, as well as nearby merchants, have all stated their belief that the purchase and renovation of the K of C hall and the adjacent lot will do much to help revitalize Rockaway Avenue.
The final step had been scheduled for the Nov. 18 meeting of the Board of Trustees, during which the board was expected to vote to adopt Local Law E. But the vote was postponed after 10 East Realty filed a plaintiff's motion, known as an order to show cause, seeking both a preliminary and permanent injunction barring the sale of the lot.
New York State Supreme Court Judge Bruce Alpert dismissed 10 East Realty's motion because it provided no notice of claim -- a technicality -- without addressing the merits of the motion.
The board voted to adopt Local Law E following Alpert's decision. In addition to the Article 78 suit, 10 East Realty is also appealing Judge Alpert's decision.
"[This] is for everybody in the community," Hyman said. "If you walk over to that lot today, it's packed. It's not only for my client, but for all the residents in the area. I don't think people realize the impact [of the sale of the lot]."
According to Mike McKenna, attorney for the village, the village has until Jan. 31 to answer the plaintiffs' motion or ask for a dismissal. In the meantime, the village could still go ahead with its plan to sell the lot because the plaintiffs' current lawsuit does not include a stay.
"[The plaintiffs' lawsuit] has nothing to do with what the village is doing," McKenna said. "[The owners of 10 East Merrick Rd.] keep saying, 'Give us 10 spots and we'll go away.' On the one hand, they're arguing we can't do it [and] on the other hand, they're saying, What's in it for me? I think the public should know that."
Hyman said there was some discussion about leaving part of the lot public, but not just for 10 East Merrick Rd. tenants.
As of now, the sale of neither the lot nor the K of C Hall has gone through. Grand Knight Mike LoCascio said plans to sell the hall to B&B are still in the works, and the insurance company has already made a downpayment on the building, but a closing date has yet to be set.
"[The lawsuit] might affect us, I can't say it won't. . . . but it is our understanding that they still want the property no matter what," LoCascio said.
Anticipating the sale, the Knights have been holding their meetings at the nearby American Legion Hall. Once the building is sold, they plan to purchase a smaller, more practical building in Valley Stream.
As of press time, B&B had not returned calls for comment.
