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Condominium Offering Plan

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Condominium Offering Plan CONDOMINIUM OFFERING PLAN FOR 70 HENRY STREET CONDOMINIUM Located At 70 Henry Street Brooklyn, New York 11201 5 RESIDENTIAL UNITS .......................................$ 27,150,000 1 COMMERCIAL UNIT ........................................... 4,560,000 5 STORAGE UNIT LICENSES....................................... 300,000 TOTAL OFFERING PRICE ..................................... $32,010,000 Name and Address ofSponsor: 70 HENRY DEVELOPMENT, LLC 184 Kent A venue Brooklyn, New York 11249 Date of Acceptance for Filing: _______ This Offering Plan May Not Be Used After ___ Unless Extended By Amendment. SEE PAGE (iii) FOR SPECIAL RISKS TO PURCHASERS THIS OFFERING PLAN IS THE SPONSOR'S ENTIRE OFFER TO SELL THE CONDOMINIUM UNITS. NEW YORK LAW REQUIRES THE SPONSOR TO DISCLOSURE ALL MATERIAL INFORMATION IN THIS PLAN AND TO FILE THIS PLAN WITH THE NEW YORK STATE DEPARTMENT OF LAW PRIOR TO SELLING OR OFFERING TO SELL ANY CONDOMINIUM UNIT. FILING WITH THE DEPARTMENT OF LAW DOES NOT MEAN THAT THE DEPARTMENT OR ANY OTHER GOVERNMENT AGENCY HAS APPROVED THIS OFFERING. BECAUSE SPONSOR IS RETAINING THE UNCONDITIONAL RIGHT TO RENT, RATHER THAN SELL UNITS, THIS PLAN MAY NOT RESULT IN THE CREATION OF A CONDOMINIUM IN WHICH A MAJORITY OF THE UNITS ARE OWNED BY OWNER­ OCCUPANTS OR INVESTORS UNRELATED TO THE SPONSOR (SEE SPECIAL RISKS SECTION OF THE PLAN). TABLE OF CONTENTS PART I Caption SPECIAL RISKS ............................................................................................................................... (v) I. INTRODUCTION ............................................................................................................................. 1 II. DEFINITIONS .................................................................................................................................. 8 III. DESCRIPTION OF PROPERTY AND IMPROVEMENTS ..................................................... 10 IV. LOCATION AND AREA INFORMATION ............................................................................... 14 V. OFFERING PRICES AND RELATED INFORMATION, SCHEDULEA ........................................................................................................... 16 VI. PROJECTED BUDGET FOR FIRST YEAR OF CONDOMINIUM OPERATION, SCHEDULE B ......................................................................... 21 VII. BUDGET FOR INDIVIDUAL ENERGY COSTS, SCHEDULE B-1 ...................................... 29 VIII. COMPLIANCE WITH REAL PROPERTY LAW SECTION 339(i) ...................................... 34 IX. COMERCIAL UNIT ..................................................................................................................... 35 X. CHANGES IN PRICES AND UNIT ............................................................................................. 38 XI. RESERVATION OF AIR/DEVELOPMENT RIGHTS .............................................................. 39 XII. PROCEDURE TO PURCHASE ................................................................................................. 40 XIII. EFFECTIVE DATE ................................................................................................................... 4 7 XIV. TERMS OF SALE .................................................................................................................... 49 XV. UNIT CLOSING COSTS AND ADJUSTMENTS ................................................................... 54 XVI. RIGHTS AND OBLIGATIONS OF SPONSOR ...................................................................... 59 XVII. CONTROL BY THE SPONSOR............................................................................................. 65 XVIII. BOARD OF MANAGERS ................................................................., .................................... 67 XIX. RIGHTS AND OBLIGATIONS OF THE UNIT OWNERS AND THE BOARD OF MANAGERS .................................................................................. 73 - 1- XX. REAL ESTATE TAXES ............................................................................................................ 87 XXI. INCOME TAX DEDUCTIONS TO UNIT OWNERS AND TAX STATUS OF THE CONDOMINIUM .......................................................................... 89 XXII. OPINION OF COUNSEL ........................................................................................................ 90 XXIII. OPINION OF SPONSOR'S TAX CONSULTANTS ............................................................ 93 XXII. RESERVE FUND AND WORKING CAPITAL FUND ........................................................ 97 XXV. MANAGEMENT AGREEMENT, CONTRACTS AND LEASES ...................................... 99 XXVI. IDENTITY OF PARTIES ..................................................................................................... 103 XXVII. REPORT TO UNIT OWNERS .......................................................................................... 105 XXVIII. DOCUMENTS ON FILE.................................................................................................. 106 XXIX. GENERAL . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 107 XXX. SPONSOR'S STATEMENT OF SPECIFICATIONS OR BUILDING CONDITION ........................................................................................... 108 11 PART II Caption Exhibit PURCHASE AGREEMENT ............................................................................................................... A POWER OF ATTORNEY ................................................................................................................... B FORM OF UNIT DEED ...................................................................................................................... C DESCRIPTION OF PROPERTY AND SPECIFICATIONS OR BUILDING CONDITION .......................................................................... D FLOOR PLANS .................................................................................................................................... E DECLARATION OF CONDOMINIUM ............................................................................................. F CONDOMINIUM BY-LAWS ............................................................................................................. G STORAGE UNIT LICENSE AGREEMENT .................................................................................... H CERTIFICATIONS SPONSOR AND PRINCIPALS ............................................................................................................ I SPONSOR'S ENGINEER (OR ARCHITECT) ................................................................................... J SPONSOR'S EXPERT CONCERNING ADEQUACY OF BUDGET ............................................ K SPONSOR'S EXPERT CONCERNING ADEQUACY OF COMMON CHARGES PAID BY COMMERCIAL UNIT OWNER .................................................................................................. L 111 j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j iv j j j j SPECIAL RISKS 1. Sponsor Control of Board of Managers. Upon the earlier of (i) the closing of title to Units whose aggregate Common Interest exceeds fifty (50%) percent or (ii) two (2) years from the First Unit Closing, Sponsor, including any designee thereof, will relinquish control of the Board of Managers if it has such control and will not elect all of its nominees for positions on the Board of Managers, even though the total percentage of Common Interest may otherwise enable it to do so. Accordingly, it is possible that Sponsor and/or its designee(s) may control the Board of Managers for as long as two (2) years from the First Unit Closing. See Part I, Section XVII "Control by Sponsor", for further discussion. 2. Restrictions on Board of Managers. As long as the Sponsor or any Sponsor­ Designee shall continue to own a Unit, but in no event for a period in excess of five (5) years from the First Unit Closing, the Board of Managers may not, without the Sponsor's or Sponsor-Designee's prior written consent, (i) make any addition, alteration or improvements to the Common Elements or (ii) assess any Common Charge for the creation of, addition to or replacement of all or part of a reserve, contingency or surplus fund, except that Sponsor will consent to replacements to the contingency funds provided for in Schedule B of the Offering Plan for the Property to the extent that the aggregate amount of such fund does not exceed 4.00% of the budgeted expenses of the Condominium or (iii) borrow money on behalf of the Condominium (except where necessary to perform work required by law and existing reserves are insufficient to pay for same). See Part I, Section XIX, Rights and obligations of Unit owners and Board of Managers, for further discussion. 3. Time of the Essence. If a Purchaser defaults under his Purchase Agreement, Sponsor shall notify Purchaser in writing of such default and advise Purchaser that he has thirty (30) days to cure such default. Time is of the essence for the Purchaser to cure any default under the Purchase Agreement within such thirty (30) day period. "Time is of the essence" means that if the default is not timely cured the Sponsor may (but is not obligated to) elect to cancel the Purchase Agreement. In such event the downpayment, any accrued interest thereon, and any other amounts paid by the Purchaser shall be paid to Sponsor as and for liquidated damages and thereafter the Purchase Agreement shall become null and void. The
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