One very sharp TMC owner noted the following:
The October 21st So Ordered Stipulation states the following in section 2:
2. Within 30 business days of execution of this Stipulation, respondents T. Park Central LLC and O. Park Central LLC shall use best efforts to coordinate and submit brokerdealer registration statements, and a proposed 89th amendment to the Manhattan Club offering plan to the Office of the New York State Attorney General's Real Estate Finance Bureau, with the requisite tiling fees, to address only the following: ............... c. Disclose the existence of the New York Attorney General's investigation to the prospective purchasers in contract, and all of the owners of ownership interests in the Manhattan Club; and
The thing they are ordered to do within 30 business days is to "use best efforts to ...submit .... a proposed 89th amendment to the Manhattan Cub offering plan to the Office of " the AG. That proposed 89th amendment is "to address only the following" and subsection c. will address disclosing the investigation to both prospective and current owners.
Section 4 of the So Ordered Stipulation orders that TMC "will cure any deficiencies identified by the Attorney General in the proposed 89th amendment and then,within 10 business days of the Attorney General's acceptance of the 89th amendment for filing, respondents T. Park Central LLC and O. Park Central LLC shall distribute it to all owners of ownership interests in the Manhattan Club".
To summarize the time schedule in the So Ordered Stipulation:
1 Within 30 business days of the So Ordered Stipulation T. Park Central LLC and O. Park Central LLC is ordered to "use best efforts" to submit a proposed 89th amendment to the offering plan to the AG's office.
2. With no specific time limit, the AG will review the amendment and identify any deficiencies in the amendment
3 With no specific time limit, TMC must fix ("cure") the deficiencies in the amendment.
4. Within 10 business days of the AG's acceptance of the amendment for filing TMC must distribute the 89th amendment to all current owners.
As the 89th amendment must disclose information about the AG's investigation and TMC must distribute a copy of the 89th amendment to all owners that's how all owners will learn about the AG's investigation. There's no guarantee that all the owners will ever read the entire 89th amendment to the offering plan. Also, the term "distribute" is not very clear. I'm sure most members of this group would read the stipulation and assume it means TMC must mail a copy to each owner but TMC could easily just leave a stack of copies of the 89th amendment at the concierge desk with a sign "Owners, please take one" and claim that's an adequate method of distribution to the owners.
We have to be vigilant on this. It is obviously not in TMC's interest to open the floodgates of disgruntled owners. If you do not receive notification of the AG's investigation of TMC in 30 days contact the Attorney General's Office.
Andrew Meier | Deputy Bureau Chief Real Estate Finance Bureau Office of the New York State Attorney General 120 Broadway, New York, NY 10271-0332 ' 212-416-8305 | 7 212-416-6595 * Andrew.Meier@ag.ny.gov http://www.ag.ny.gov/bureau/real-estate-finance-bureau