cancellation without notice to the Condominium Board; a waiver of subrogation; a waiver of invalidity because of acts of the insured and Unit Owners; and a waiver of pro-rata reduction if Unit Owners obtain additional coverage. This coverage does not include claims for personal injury or property damage resulting from occurrences in individual Units or any Common Elements exclusive to such Units, nor does it include coverage of any Unit (as such term is more particularly described in the Plan and the Declaration. The proposed insurance provides property coverage on an All Risk/Replacement Cost basis. The Building limits and Business Income limits are based on an Agreed Amount which is a waiver of co-insurance. This quotation is an indication of insurance premiums at current rates. Because conditions in the insurance marketplace are volatile, it is not possible to predict what the premiums will be for the First Year of Condominium Operation. Purchasers should be aware of the possibility of rate increases. The insurance is adequate for the replacement of the building in the event of a total loss. The carrier will be selected at the time the coverage is bound. This will occur prior to the first unit closing. The agent quoting the proposed insurance is MR Cooper, LTD Insurance located at 622 Third Avenue, New York, New York 10017. Sponsor will procure, on behalf of the Board, on or before the date of the First Closing, the general liability insurance that is required to be carried by the Condominium. This insurance coverage meets the requirements of the mortgage lender procured by Sponsor. (10) Management Fee: $52,000 Based on the management agreement to be entered into with FirstService Residential New York Inc. at or before the First Closing, it is expected that the Managing Agent will receive an annual fee of $52,000 for the first year. Reference should be made to "Management Agreement, Contracts and Leases" in Part I for further discussion of the terms of the Management Agreement. (11) Resident Managers Unit: $60,624 It is anticipated that Sponsor will sell Residential Unit 20 to the Board of Manager for use and occupancy of the Resident Manager of the Condominium for a purchase price of $982,300 (the "RM Unit Price") will be payable by Note as described below. $343,805 (35% of the total purchase price) will be paid toward the Resident Managers Unit by each unit owner at closing (See Schedule A-1 ). It is anticipated that the balance, $638,495, of the RM Unit Price is to be financed via a loan from an Institutional Lender at an estimated interest rate of 4.500% for a loan based on a 5 year term with a 30 year amortization schedule. The closing costs for the loan will be paid out of the working capital fund. The costs represented by this line item reflect the annual debt service on the purchase money loans in the amount of $638,495 at an interest rate of 4.50% for a 5 year, p:\offering plans\300 west \22nd street\amendments\second amendment\300 west \22nd street draft schedule b - 04 8 16.doc
fully amortizing loan, plus annual Common Charges and real estate taxes allocable to the RM Unit and an annual telephone cost of $2,400 and electricity cost of $3,000. Though the sale of the RM Unit to the Board is not anticipated to occur in the projected First Year of Condominium Operation, the Board of Managers may be required to pay a use and occupancy fee to Sponsor for the period prior to sale of the RM Unit equal approximately to debt service, Common Charges and real estate taxes. (12) Legal and Audit Fees: $20,000 Based upon the estimate set forth in a letter dated December 19, 2013 from JT Cohen CPA, P.C. located at 224 West 35th Street, New York, New York, 10001, Sponsor has budgeted $8,500 for estimated auditing and accounting fees in connection with the preparation of the audited financial statements for the First Year of Condominium Operation and Federal, state and city income tax returns. The balance of the budgeted amount ($11,500) has been estimated to provide for minor legal services to be rendered in connection with the operation of the Building such as attendance at Board meetings, preparation of Board minutes and negotiation of minor agreements. This amount has been allocated between the Residential and Non-Residential Units on the basis of Common Interest. (13) Other Expenses $20,000 Other Expenses covers telephone, office supplies, office equipment, postage, special communications and mailings to the Unit Owners, annual meetings, and general expenses. Telephone and Communications Printing and Postage Sprinkler Fees Payroll Processing Bank Fees Dues General $ 8,000 $ 3,000 $ 750 $ 5,000 $ 1,000 $ 1,000 $ 1,250 (14) Contingency 20,000 This fund may be used at the discretion of the Board toward unforeseen expenses or other appropriate Condominium expenses. The purpose of the contingency is to provide for unanticipated expenses or unanticipated increases in projected expenses. (15) Replacement Reserve $150,749 The funds collected under this line item are for deposit into an account established by the Board of Managers to hold the Replacement Reserve Fund which is to be funded out of Common Charges and used for periodic maintenance, repair and replacement of the Common Elements, in accordance with the By-laws. ************************************** p:\offering plans\300 west I 22nd street\amendments\second amendment\300 west I 22nd street draft schedule b - 04 8 16.doc
The foregoing projected budget may be modified from time to time prior to commencement of and during the First Year of Condominium Operation, to add or delete or increase or decrease one or more items of operating expenses. If additional funds are required to pay expenses, it may be necessary to increase Common Charges or specially assess Unit Owners. ****************************************** (16) IN THE OPINION OF FIRSTSERVICE RESIDENTIAL NEW YORK INC., THE PROJECTED INCOME IS ADEQUATE TO MEET THE PROJECTED COMMON EXPENSES FOR THE FIRST YEAR OF CONDOMINIUM OPERATION, ASSUMING SUCH FIRST YEAR TO BE THE 12-MONTH PERIOD COMMENCING JULY 1, 2018. THE FOREGOING SCHEDULE, HOWEVER, IS NOT INTENDED AND SHOULD NOT BE TAKEN AS A GUARANTEE OR WARRANTY BY ANYONE THAT THE ANNUAL COMMON CHARGES OR OTHER INCOME AND EXPENSES FOR SUCH FISCAL YEAR OR ANY SUBSEQUENT YEAR OF OPERATION OF THE PROPERTY WILL BE AS SET FORTH IN SAID SCHEDULE, SINCE THE ANNUAL COMMON CHARGES AND OTHER ITEMS OF INCOME AND EXPENSE MAY VARY FROM AMOUNTS SHOWN IN THE SCHEDULE. Sponsor reserves the right to enter into additional or other service, maintenance, employment, concessionaire and other agreements that will be binding on the Condominium upon commencement of condominium operation. Sponsor shall not, however, enter into any binding service, maintenance, employment, concessionaire or other agreements that will materially increase the first year's projected Common Charges or that will be binding on the Condominium for a period of more than two (2) years, unless the Plan is amended. p:\offering plans\300 west 122nd street\amendments\second amendment\300 west 122nd street draft schedule b - 04 8 16.doc
FirstService RESIDENTIAL CERTIFICATION BY AN EXPERT ON THE ADEQUACY OF COMMON CHARGES PAYABLE BY THE COMMERCIAL UNIT OWNER PURSUANT TO PART 20 OF THE REGULATIONS ISSUED UNDER GENERAL BUSINESS LAW ARTICLE 23-A, AS AMENDED April 6, 2016 New York State Department of Law 120 Broadway 23rd Floor New York, New York 10271 Attention: Real Estate Finance Bureau Re: Gentlemen: Condominium Offering Plan The Skylar Condominium 300 West 122 d Street, New York, New York 10027 The undersigned certify as follows: The Sponsor of the condominium Offering Plan for the captioned property retained our firm, FirstService Residential New York, Inc., having an office at 622 Third Avenue, New York, NY 10017, to prepare chedule B, which includes. projections of common charges payable by the owner of the commercial unit. FirstService Residential New York, Inc. has been in the real estate management business for nearly twentyfive (25) years, and currently manages more than two hundred and fifty (250) cooperative and condominium apartment houses throughout New York City. We understand that we are responsible for complying with Article 23-A of the General Business Law and the regulations promulgated by the Department of Law in Part 20 insofar as they are applicable to the commercial units listed in Schedule B. We have reviewed the Schedule B as it impacts upon the commercial unit and investigated the facts underlying it with due diligence in order to form a basis for this certification. We also have relied on our experience in managing residential buildings. We certify that the projections in Schedule B for common charges payable by the owner of the commercial unit appear reasonable and adequate under existing circumstances to meet the anticipated operating expenses fairly attributable to such commercial units for the projected first year of condominium operation, and that the alloca'tion of common charges attributable to the commercial unit also reflects special or exclusive use or availability or exclusive control of particular common areas. 622 Third Avenue I New York, NY 10017 Tel 212.634.8900 I Fax 212.634.3946 www.fsresidential.com
unit: We certify that the estimates in Schedule B for the common charges payable by the owners of the commercial (i) (ii) (iii) (iv) (v) (vi) (vii) set forth in detail the projected common charges for the commercial unit for the first year of condominium operation; afford potential investors, purchasers and participants an adequate basis upon which to found their judgment concerning the common charges payable by the owners of the commercial unit; do not omit any material fact; do not contain any untrue statement of a material fact; do not contain any fraud, deception, concealment, suppression; do not contain any promise or representation as to the future which is beyond reasonable expectation or unwarranted by existing circumstances; do not contain any representation or statement which is false, where we: (a) knew the truth; (b) with reasonable effort could have known the truth; (c) made no reasonable effort to ascertain the truth; or (d) did not have knowledge concerning the representation or statement made. We further certify that we are not owned or controlled by the sponsor. We understand that a copy of this certification is intended to be incorporated into the offering plan. This statement is not intended as a guarantee or warranty of the common charges fairly attributable to the commercial unit for the first year of condominium operation. This certification is made under penalty of perjury for the benefit of all persons to whom this offer is made. We understand that violations are subject to the civil and criminal penalties of the General Business Law and Penal Law. ~w rn to before me this b~ay of April 2016 Senior Vice President New Development Group ROSEM Y MERCADO Notary Public, State of New York No. 01 ME6282869 Qualified in Weslchester Commission Expires May 28, County1 20-Lf 1 FirstService RESID~NTl;.,i
FirstService RESIDENTIAL CERTIFICATION BY SPONSOR'S EXPERT AS TO ADEQUACY OF BUDGET PURSUANT TO PART 20 OF THE REGULATIONS ISSUED PURSUANT TO GENERAL BU TNESS LAW ARTICLE 23-A, AS AMENDED April 6, 2016 New York State Department of Law 120 Broadway 23rd Floor New York, New York 10271 Attn: Real Estate Finance Bureau Re: Gentlemen: Condominium Offering Plan The Skylar Condominium 300 West 122"d Street, New York, New York 10027 The Sponsor of the condominium Offering Plan for the captioned property retained our firm, FirstService Residential New York, Inc., having an office at 622 Third Avenue, New York, NY 10017, to prepare Schedule B to the Offering Plan, containing projections of income and expenses for the first year of condominium operation. FirstService Residential New York, Inc. has been in the real estate management business for nearly twentyfive (25) years, and currently manages more than two hundred and fifty (250) cooperative and condominium apartment houses throughout New York City. We understand that we are responsible for complying with Article 23-A of the General Business Law and the regulations promulgated by the Attorney General in Part 20 insofar as they are applicable to Schedule B. We have reviewed Schedule Band investigated the facts set forth in Schedul Band the facts underlying them with due diligence in order to form a basis for this certification. We have also relied upon our firm's experience in managing residential buildings. We certify that the projections in chedule B appear reasonable and adequate under existing circumstances and the projected income appears to be sufficient to meet the anticipated operating expenses for the projected first year of condominium operation. We certify that Schedule B: 622 Third Avenue I New York, NY 10017 Tel 212.634.8900 I Fax 212.634.3946 www.fsresidential.com
(i) (ii) (iii) (iv) (v) (vi) (vii) sets forth in detail the projected income and expenses for the first year of condominium operation; affords potential investors, purchasers and participants an adequate basis upon which to found their judgment concerning the first year of condominium operation; does not omit any material fact; does not contain any untrue statement of a material fact; does not contain any fraud, deception, concealment or suppression; does not contain any promise or representation as to the future which is beyond reasonable expectation or unwarranted by existing circumstances; and does not contain any representation or statement which is false, where we; (a) knew the truth; (b) with reasonable effort could have known the truth; ( c) made no reasonable effort to ascertain the truth; or ( d) did not have knowledge concerning the representation or statements made. We further certify that we are not owned or controlled by the Sponsor. We understand that a copy of this certification is intended to be incorporated into the Offering Plan. This statement is not intended as a guarantee or warranty of the income and expenses for the first year of Condominium operation. This certification is made under penalty of perjury for the benefit of all persons to whom this offer is made. I understand that violations are subject to the civil and criminal penalties of the General Business Law and Penal Law. FirstService Residential New York, Inc. By: Name: Marc Kotler Title: Senior Vice President New Development Group Sworn to before me this b~day of April 201 ROSEMARY MERCADO Notary PublicL ~late of New York No. OiME62B2869 Qualified In Westchester County1-J Commission Expires May 28, 20-L. FirstService RESID,~NTlAt.
Exhibit J P:\OFFERING PLANS\300 WEST 122ND STREET\AMENDMENTS\SECOND AMENDMENT\EXHIBIT TABS.DOCX
SKYLAR Condominium Super's Unit Purchase Contribution Unit 2A 28 2C 2D 2F 2G 2H 2J 2K 2L 2M 3A 38 3C 30 3E 3F 3G 3H 3J 3K 3L 3M 3N 4A 48 4C 40 4E 4F 4G 4H 4J 4K 4L 4M 4N SA 58 SC 50 SE SF 5G Contribution Toward Unit Contribution Toward Unit Contribution Toward Purchase of Super's Unit Purchase of Super's Unit Purchase of Super's Unit $2,000.00 SH $3,000.00 9C $2,000.00 $2,000.00 SJ $1,000.00 90 $3,000.00 $3,000.00 SK $3,000.00 9E $3,000.00 $0.00 5L $3,000.00 9F $3,000.00 SM $3,000.00 9G $1,000.00 $2,000.00 SN $4,100.00 9H $3,000.00 $3,000.00 6A $2,000.00 9J $3,000.00 $3,000.00 68 $2,000.00 10A $2,000.00 $1,000.00 6C $3,000.00 108 $4,200.00. $3,000.00 60* $3,000.00 10C $2,050.00 $3,000.00 6E $2,000.00 100 $3,050.00 $3,000.00 6F $2,000.00 10E $3,050.00 $2,000.00 6G $3,000.00 10F $3,050.00 $2,000.00 6H $3,000.00 10G $1,020.00 $3,000.00 6J $1,000.00 10H $3,050.00 $3,000.00 6K $3,000.00 10J $3,050.00 $2,000.00 6L $3,000.00 11A $2,035.00 $2,000.00 6M $3,000.00 118 $4,200.00 $3,000.00 6N $4,100.00 11C $2,050.00 $3,000.00 7A $2,000.00 110 $3,050.00 $1,000.00 78 $2,000.00 11E $3,050.00 $3,000.00 7C $3,000.00 11F $3,050.00 $3,000.00 70 $3,000.00 11G $1,025.00 $3,000.00 7E $2,000.00 11H $3,050.00 $4,100.00 7F $2,000.00 11J $3,050.00 $2,000.00 7G $3,000.00 12A $2,050.00 $2,000.00 7H $3,000.00 128 $4,200.00 $3,000.00 7J $1,000.00 12C $3,050.00 $3,000.00 7K $3,000.00 120 $3,050.00 $2,000.00 7L $3,000.00 12E $3,050.00 $2,000.00 7M $3,000.00 12F $3,050.00 $3,000.00 8A $2,000.00 12G $4,225.00 $3,000.00 88 $2,000.00 PH-A $4,250.00 $1,000.00 ac $3,000.00 PH-8 $3,150.00 $3,000.00 80 $3,000.00 PH-C $3,150.00 $3,000.00 8E $2,000.00 PH-0 $3,150.00 $3,000.00 BF $2,000.00 PH-E $4,250.00 $4, 100.00 BG $3,000.00 COM 1 $4,250.00 $2,000.00 8H $3,000.00 COM2 $4,250.00 $2,000.00 8J $1,000.00 $3,000.00 8K $3,000.00 TOTAL $343,805.00 $3,000.00 8L $3,000.00 $2,000.00 BM $3,000.00 $2,000.00 9A $2,000.00 $3,000.00 98 $4,200.00 P:\Offering Plans\300 West 122nd Street\Amendments\Second Amendment\300 West 122nd St - Schedule A-1.pdf