Crocheron Terrace
170-06 Crocheron Ave.
Flushing, NY 11358
Maintenance Increase Notice
On June 28, the Crocheron Terrace (“Co-op”) Board of Directors (“Board”) has approved to increase the maintenance by 20% effective as of September 1, 2022. As indicated in the “Proposal Notice” sent earlier this year and during the Shareholder meeting, the 20% maintenance increase is to cover the budget shortfall of $61K from the loss of the Sprint antenna contract.
Background:
In Oct. 2021, the Co-op had an antenna leasing contract with Sprint which produced $41K (Net of fee) of revenue per year. Due to the recent merger of T-Mobile and Sprint, Sprint had canceled its leasing contract with the building (T-Mobile has an existing contract with the building and did not need Sprint’s lease). Due to the early termination, the contract required Sprint to cover payments up till Feb. 2022. The Board and management had made several efforts to see if other companies would provide a similar lease to no avail. No contracts are available at this time.
In Feb. 2022, the insurance policy for the building came up for renewal. The new policy requested an increase of $20K per year. The increase in premium was a result of the fire in 2019 and fall/accident charges against the building.
As such, the building has an annual budget shortfall of $61K which will be covered by the 20% maintenance increase.
Please note, the Board proposed a motion of institute a flip tax which failed to received 2/3 shareholder approval and was suggested by various shareholders to revisit the motion after additional information could be provided for the use of the funds (ie, Heat Pumps, etc).
The Board will actively continue to find areas to reduce costs in the building (ie, Convert oil to gas, etc) in an effort to reduce or forestall any future maintenance increase.