[NYguy]

http://www.brooklyneagle.com/node/11326%20

Brooklyn judge rules against first-place bidder for Long Island College Hospital





By Mary Frost

Telling a packed Brooklyn courtroom that “a serious decision has to be made,” state Supreme Court Justice Johnny Lee Baynes ruled against Brooklyn Health Partners’ attempt to force the State University of New York (SUNY) to accept their bid for Long Island College Hospital (LICH).

Brooklyn Health Partners (BHP), a team combining California developers and a Borough Park investor, had been ranked first in SUNY’s disputed Request for Proposals bidding process, but contract talks fell apart weeks ago.

BHP CEO Merrell Schexnydre and investor Harry (Chaim) Miller claimed SUNY did not negotiate in good faith. But they failed to make their case before Justice Baynes on Tuesday.

The ruling frees SUNY to negotiate with the ostensible second-place bidder, developer Peebles Corp., which is not offering to operate the LICH campus as a full-service hospital.

Community groups and doctors plan to contest the final rankings on Thursday, charging that some panelists scoring the bids did not follow the negotiated settlement’s guidelines.

No matter who is ultimately chosen to take over the historic Cobble Hill hospital, the doors are scheduled to close on May 22, leaving thousands of Brooklyn residents without nearby health services or an ER. SUNY plans to shut down LICH's ER on Thursday.

Justice Baynes said he based his decision on “everything on the record” about BHP’s ability to finance the acquisition of LICH and operate the hospital as described in their proposal.

The judge had asked BHP to provide nine items as proof of financial and medical capacity on Tuesday, including letters of credit attesting to their ability to pay the purchase price of $250 million in non-contingent funds, with a $25 million cash deposit. He also required documentation of BHP’s interim health care arrangements, and proof of the group’s capacity to build a $50 million bridge facility and construct a new $300 million hospital.

According to SUNY’s attorneys, BHP obtained a loan commitment from Madison Realty Capital which was subject to an interest rate of prime plus 8 percent, payable in 24 months – with all interest payable up front at closing. “That’s no less than 12 percent,” said SUNY attorney Frank Carone. “Guess who would own the property? Madison Realty Capital when they foreclose. That’s bad business.”

BHP attorney Jill Block disputed Carone’s description of the terms, saying the loan merely required that a six-month reserve be established, replenished every six months. “That’s typical of real estate loans,” she said.

LICH advocates had praise for Justice Baynes, who they called “more than fair,” but fear the decision leaves the hospital in limbo. More than 20,000 patients visited LICH’s ER over the last year, and 182 dialysis patients will be left in the cold after May 22.

Meanwhile, there will be towers built in the immediate area whatever the plans are here...


http://www.nydailynews.com/new-york/...icle-1.1790938

Two controversial new luxury condo towers with awesome waterfront views are set
for Brooklyn Bridge Park despite opposition from Brooklyn pols

Two controversial new luxury condo towers with spectacular waterfront views are heading to Brooklyn Bridge Park, despite strong resistance from Brooklyn elected officials.

The de Blasio administration Tuesday launched a search for a developer to build two residential towers that could soar 15 and 31 stories — but the push for affordable housing has collided with a desire by advocates to keep the park green.

“We are disappointed with this rush to continue the Bloomberg Administration plan for housing towers in Brooklyn Bridge Park,” said a letter signed by elected officials, including Councilman Brad Lander, a de Blasio backer.

“As we fight to save Long Island College Hospital across the street, we must plan more thoughtfully for the future of the neighborhood,” continued the missive, also signed by Rep. Nydia Velazquez, state Sen. Daniel Squadron, state Assemblywoman Joan Millman and Councilman Steve Levin.

The city has called for 30% of the estimated 430 apartments at the two towers to be reserved for moderate- and middle-income residents, but the nod toward affordable housing has done little to sway officials opposed to private housing in city parks.

Still, city officials, including a deputy mayor and the head of Brooklyn Bridge Park, hailed the proposal on Tuesday, insisting it will generate housing and millions of dollars for the park.

“This is a unique opportunity to see this world-class park built and sustained for decades to come, while at the same time providing opportunities for middle-income workers who increasingly cannot afford to live in Brooklyn,” said Deputy Mayor for Housing and Economic Development Alicia Glen.

“It’s a win-win for the community and the borough.”