Civic Center Residents Coalition NYC: Chinatown Property Owners declare Victory in Getting the city to rescind $400,000 in illegal BID taxes

Wednesday, April 11, 2012

Chinatown Property Owners declare Victory in Getting the city to rescind $400,000 in illegal BID taxes

property owner Jan Lee , and AALDEF attorney Bethany Li (to the left of Jan)

On April 10th Chinatown property owners (PTP Inc.) and The Asian American Legal Defense and Education Fund held a press conference to declare victory in succeeding to get the City to rescind an illegally imposed Chinatown B.I.D. tax which would have retroactively reimbursed the Chinatown Partnership LDC BEFORE the Chinatown BID was even a legal entity.

""This misappropriation of our funds lived up to every suspicion that we had going into this," said Lee, 46, whose family has owned property in the neighborhood for 80 years. Lee, who has been a loud opponent of the formation of the BID, said that the incorrect fees add up to hundreds of thousands of illegal charges across different owners." - Village Voice

"Li, from AALDEF, said it's a troubling sign that the city -- which now oversees 67 BIDs -- made this kind of error. "My understanding is [the city] just misunderstood the law, which is problematic given that this is their 67th BID."Ultimately, she added, the fees of the BID can be burdensome to longtime businesses who have to participate. - Village Voice

"[Wellington] Chen called the issue a "technicality," dismissing AALDEF's characterization of the BID fees as being "illegal." "This is an accounting issue," Chen said. "It does not warrant wasting time and energy." - www.dnainfo.com
Read more: http://www.dnainfo.com/20120409/lower-east-side-east-village/city-refund-300k-chinatown-property-owners#ixzz1rn9OlvZY

According to the Interim Chinatown Business Improvement District Board of Dir's minutes:
minutes:

Treasurer’s Report

Tony Wong reported that the board needs to decide on the fiscal year and the billing date for the BID.

There are two options: 1) start the billing in July 1, 2011, when Chinatown Partnership started paying the expenses for the BID; or 2) October 1, 2011 when the BID was officially approved and the Partnership extended the service to the entire BID’s service area.

Eddy Eng mentioned that once the BID decided on the billing date, the property owners will receive the bill in April, and once the BID’s bank account is set, the BID will receive 75% of $1.3 million dollars (the BID’s budget), and 50% of the FY 2013’s Annual Budget by July 2012.

After all the considerations and discussions, the motion to approve the Chinatown District Management Association’s fiscal year as July 1 to June 30; and start the DMA assessment billing on October 1, 2011, passed unanimously.

Eddy Eng also suggested using a special occasion to announce the billing to the community and in a positive way.

Acknowledgment of Chinatown Partnership

Wellington reported that the Chinatown partnership has been paying for all the BID’s expenses since July of 2011 and is now in a cash flow situation. The Partnership already laid-out more than $200,000 dollars for the BID and cannot sustain forever in this fashion.

David Louie acknowledges all the works the Partnership’s board has done for the BID and suggested a donation or reimbursement to the Partnership for the expenses they had incurred once the BID receives its funding.

Motion to approve the reimbursement to the Chinatown Partnership of necessary and verifiable expenses related to the BID from July 1, 2011 until the BID receives its own funding passed unanimously.

CDMA Interim Board Members Present:

Jimmy Cheng, United Fujianese American Association

Kenneth Cheng, Fukien American Association

Nolan Cheng, Law Offices ofNolan Cheng

Peter Cheng, Chinatown Partnership Local Development Corporation

Priscilla Cheung, eRxCityCorporation

Stephen Cheung, D.H. Realty & Management

Anthony P. Colombini, Esq., Chu and Partners

Eddy Eng, Small Business Services, Mayor Michael Bloomberg’s office

Frank F. Gee, Gee Poy Kuo Association

Dr. Wilson Ko, Multispecialty Physician Group

Philip Lam, Green City Realty