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GUILLERMO LINARES
COUNCIL MEMBER, 10TH DISTRICT, MANHATTAN
CITY HALL OFFICE
250 BROADWAY 23RD FL.
NEW YORK, N,Y, 10007
TEL. {2 I 2) 7887354
0 DISTRICT OFFICE
656 WEST 181ST ST. NO. 2W
NEW YORK, N.Y. 10033
TEL. (212) 781-0656
FAX. (212) 740 I 573
Gary Altman
Legal Division
City Council
75 Pk/5th Fl
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THE COUNCIL
OF
THE CITY OF NEW YORK
CITY HALL
NEW YORK, N.Y. 10007
July 26, 1994
Dear Mr .. ~ n ~ J
COMMITTEES:
AGING
EDUCATION
GENERAi.. WELFARE
HOUSING AND 8U!l..DINGS
INTERNATIONAL INTERGROUP
RELATIONS AND SPECIAL EVENTS
During the evolution of the Mediation-Arbitration Lease Bill
we have always been sensitive to the rights and needs of the
landlord. While the main goal of the Bill has been to restore fair
negotiations to the marketplace, which this bill would. achieve, it
also has several other goals. These other goals are: no cost to
the taxpayer, no new government agencies, simple low cost system,
minimal impact 4pon the marketplace, target just the speculators,
let both parties determine their own financial destinies, be
constitutional, and protect the rights of honest landlords.
To accomplish our goals we consulted with many landlords,
business leaders, not-for-profit arbitration associations, trade
groups, and lawyers. As our representative, Ms. Sherri Donovan
Esq. did extensive research on the constitutionality of this Bill.
She reviewed the court history of our state law protecting
commercial leases from 1945 to 1963. She consulted with both the
lawyers and politicians who wrote the Berkeley, Ca. law protecting
store leases. She contacted one of the country's leading authority
on landlord and tenant litigation, Prof. Dennis Keating of
Cleveland State University. She presented her arguments before the
city council in 1989, at which time the city's own corporate
council agreed with the conclusions reached by Ms. Donovan, that
the bill was constitutional. The city council then decided to
proceed with a vote in committee on bill to protect commercial
leased stores.
Clearly, this Bill bends over backwards to be fair to honest
landlords. Every legitimate reason a landlord would have to get
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.Altman
Page 2 of 2
rid of a bad tenant is listed. What is required of landlords in
this bill is neither expensive nor burdensome. What is required of
the landlord is also asked of the tenant; shared time, shared
expense, consideration of both parties' costs and profits, and
unique situations to both, etc.
Even though we feel this Bill is both fair and constitutional
we added a landlord taking right to the bill, which gives the
landlord the right to take back the property for their own use.
Now to further assure the constitutionality of this Bill we are
making two major changes. First, in the list of factors the
arbitrator must consider in order to render a determination, the
mortgage debt of the landlord would be added. Considering the
magnitude of real-estate speculation our city experienced d\Jring
the 1980's this is a major concession. Secondly, in the list of
factors the arbitrator must consider in order to render a
! determination, the GOING MARKET RATE for the area will be added to
the list. Considering the market's history of wide swings, abuses,
excesses and the negative elements that can greatly influence a
market this \likewise is another major concession.
In the spirit of creating a fair and constitutional Bill we
hope you can appreciate our efforts to compromise in order to
achieve quicker action on this much needed Bill.
cc: Victor Robles
Council MP.mber
Ronnie Eldridge
Council Member
Sincerely,

Council Member
New York City
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