Negotiating with Your Neighbor
Sept. 30, 2015 — When a Housing & Development Finance Corporation co-op on Manhattan's Upper West Side learned that its next-door neighbors planned to add three stories to its building — moving not only upward but also outward — the co-op board decided to bring in some heavy artillery. The board hired both a structural engineer and C. Jaye Berger, a Manhattan lawyer who specializes in co-op and condo construction law.
Smart move.
Carmen Burgos, president of the 16-unit co-op's board, recalls the first meeting with the developer: "That meeting was very interesting for me. I didn't know what to expect." Berger says the developer's team was "very condescending. When we asked for a set of the plans and specifications, they realized they were dealing with savvy people. They thought the ladies were going to come in and just sign. Instead, Carmen showed up with a structural engineer and me."
Careful study of the drawings revealed that the developer's plan was more ambitious than he was letting on. He wanted to build right on the lot line, for one thing, which led the board to hire its own surveyor. The developer soon changed his plans.
In negotiations over the access agreement, which Berger calls "a very delicate dance," the developer also agreed to erect barriers against noise and dust; install protection when work was done on or above the five-story co-op's roof; and reimburse the building for certain professional expenses.
"My advice to boards faced with this situation," says Burgos, "is to make sure you've got the right professionals. Our board's [regular] lawyer did not have experience in construction."
When dealing with construction adjacent to a client's property, Berger is guided by an iron principle. "You don't want the building to be out of pocket," she says. "I tell developers we don't have a budget to put up your building."