Moving Forward After Settling an Inch and a Half

Trying to Work With the Developer

Despite these major problems, there is no panic in the building as construction moves forward — because there's a sense that the licensing agreement will protect the co-op in the end, and because the co-op worked to establish a good relationship with the developer.

"I believe we got the best deal we could get," says Allen Salkin, vice president of the tenement's board. "My advice [to others in a similar situation] is to hire the best lawyer you can, try to get as much money up front as you can — and treat the developer like a human being. They're not the enemy — but keep an eye on them. I bring coffee to the construction site manager. You want them to understand that human beings live next door."

Meeting Once a Week

By way of keeping an eye on the developer, Hobson is on the site at least once a week and she's always on call, ready to visit the site within 24 hours, sometimes in much less time, if there's a serious problem. She attends board meetings and delivers status reports when requested by the board. She agrees with Salkin about the importance of establishing relationships.

"It sounds stupid," Hobson says, "but be nice. I have a great rapport with the developer. If you're open and honest, you'd be surprised how far that goes."

Lisa Smith, the real estate attorney who specializes in co-ops and condos and was hired by the tenement's board, says the shared goal of the co-op and the developer is that the tenement building will be returned to its original condition when construction is complete, and the co-op will not be out of pocket. "The developer doesn't want litigation," she says. "Damages will be repaired — either from the developer's pocket or from his insurance."

Turns out this board did the right thing by not sticking its head in the sand.

Illustration by Marcellus Hall