Memo from DCAS discussing progress payments to the landlord for 7 World Trade Center renovations.
NYC-WTC_000170769Folder label: “7 World Trade Center Lease®Mayor's Office of Emergency Management”
OCR status: ok · source: pdftotext
NYC 9/11 Public Portal Document
DEPARTMENT OF CITYWIDE ADMINISTRATIVE SERVICES J* DIVISION OF REAL ESTATE SERVICES BUREAU OF LEASING AND SPACE DESIGN MUNICIPAL BUILDING, 20th Floor - Room 2000N NEW YORK, N.Y. 10007 (212)669-2620
WILLIAM J. DIAMOND LORI FIERSTEIN JEFFREY R KONDRAT Commissioner Deputy Commissioner Assistant Commissioner
March 2, 1998
TO: Dan Muller Chief of Contracts and Real Estate Law Department
FROM; JefFKondrat Assistant Commissioner
RE: 7 World Trade Center Lease Mayor’s Office of Emergency Management
A week or so ago we discussed the possibility of making progress payments to the Landlord (Silverstein Properties) during the proposed renovations for the Tenant’s share of the costs in lieu of paying construction financing costs. The construction financing costs for the City’s estimated $12,000,000 portion of the work could exceed $500,000. You asked me to find out the current practice in the commercial real estate market in Manhattan for the payment of the tenant’s share of the costs of renovations.
I have poled two DC AS Tenant Representatives, as well as discussing it with Silverstein. When renovations are needed it appears that the Tenant makes the renovations about 50% of the time. When landlords make the renovations, in most cases the tenants make progress payments for any renovations above the landlord’s work letter when billed, which is usually when the contractor needs to pay the suppliers. In some cases, tenant’s payments are made in regular intervals during the renovations (which we are contemplating doing at 7 World Trade Center). Indeed, Silverstein claims that if the costs above the landlord contribution are excessive, they demand a 20% down payment and regular payments during the construction so the tenant’s share of the costs are all paid prior to completion.
In this market, it certainly appears that in this and future deals where the landlord must finance large renovations costs, that the City will be asked to make progress payments or pay for construction financing. Since our costs of funds (6% to 7%) is far less than a normal commercial landlord’s cost of funds (10% to 11%), it would be far less costly to make progress payments.
I hope this addresses your concerns. Call me if you have any further questions.
cc. Lori Fierstein Philip Damashek Jason Cutler
NYC-WTC_000170769
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NYC-WTC_000170785
Memo authorizing a public hearing to approve a lease of approximately 50,065 square feet at 7 World Trade Center for the Mayor's Office of Emergency Management.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.933
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000171026
A letter confirming the appointment of a tenant representative to negotiate the lease for the Mayor's Office of Emergency Management at 7 World Trade Center.
1 shared topics · Same agency, volume and box · similarity 0.929
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000171692
Department memo approving payment of $1,884,322.00 for construction rent at the Mayor's Office of Emergency Management dated August 30, 1999.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.925
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000171786
DCAS memo approving a $2.5 million construction rent invoice from the landlord for the Mayor's Office of Emergency Management.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.925
machine-extracted · confidence unavailable · Check page ↗1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.925
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000171261
DCAS memo dated March 9, 1999 approving an invoice for construction rent payments at the Mayor's Office of Emergency Management.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.924
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000167167
Memorandum from DCAS approving an invoice for construction rent payments totaling over $13 million for the 7 World Trade Center project.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.923
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000173909
DCAS memo approving an invoice for $2.5 million in construction rent payments for the Mayor's Office of Emergency Management at 7 World Trade Center.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.923
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000172351
Memorandum from DCAS approving a construction rent invoice for the Mayor's Office of Emergency Management at 7 World Trade Center.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.923
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000171415
Memo enclosing an invoice for $504,232 in construction rent payments for the Mayor's Office of Emergency Management at 7 World Trade Center.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.922
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000168382
Memo approving an invoice for construction rent payments at 7 World Trade Center and requesting processing of the $1,884,322.00 payment.
1 shared non-person entities · Same agency, volume and box · similarity 0.922
machine-extracted · confidence unavailable · Check page ↗NYC-WTC_000171275
DCAS memo dated June 14, 2001 approving an invoice for $504,232 in construction rent payments at the Mayor's Office of Emergency Management.
1 shared non-person entities · 1 shared topics · Same agency, volume and box · similarity 0.922
machine-extracted · confidence unavailable · Check page ↗No available related records indexed in this group.
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Memo authorizing a public hearing to approve a lease of approximately 50,065 square feet at 7 World Trade Center for the Mayor's Office of Emergency Management.
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A letter confirming the appointment of a tenant representative to negotiate the lease for the Mayor's Office of Emergency Management at 7 World Trade Center.
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DCAS memo approving a $2.5 million construction rent invoice from the landlord for the Mayor's Office of Emergency Management.
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