LANDREX will act as a clearing house for the sale of participants’ transferable development rights, also known as air rights. LANDREX eligible landmarks will be limited to , individually designated, not-for-profit and religious tax-exempt properties. It will not engage in any other business activities. It will not own any of the TDR’s. During a specific period of time, once a year, participating landmarks will voluntarily elect to put all, some or none of their TDR’s into LANDREX.
When a developer purchases TDR’s from LANDREX, all LANDREX participants will receive both a 10% per-capita and a 90% pro-rata share of the proceeds after a service fee is deducted. So, all landmarks will share 10% of the revenues regardless of the number of TDR’s that they have in LANDREX while their portion of the 90% pro-rata revenue will depend on what percentage of the total number of TDR’s their TDR’s represent. TDR’s will be valued at the receiving site and be supported by an appraisal.
Proceeds from the sale of the TDR’s must be used for the preservation, repair, energy efficient retrofits and present and future maintenance of the landmarks. Landmarks must first be brought into to a state of “good repair” before funds are used for any other purpose. If funds are not required for these purposes they may be used for mission. Consequently, other funds (if any) otherwise earmarked for preservation purposes could now become available for social service/mission purposes. (There are more than 700 social services outreach programs participated in by these institutions.) Funds will be released to each landmark upon documentation of plan approval by the New York City Landmarks Preservation Commission.
If a landmark with TDR’s in LANDREX receives a bonafide written offer for their TDR’s from a developer who wants to purchase them to use in the area within their existing zoning parameters, LANDREX will release those TDR’s back to the owner.
Prior to the distribution of revenues all funds will be held in trust for the institutions by a recognized New York City financial institution.
No funding will be required from the City of New York.
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As a New York State Benefit Corporation LANDREX will have oversight features built in to its organizational documents. Also, we will provide quarterly reports and an audited year-end financial statement to the following and post them on our web site:
Oversight will be provided by The New York City Landmarks Preservation Commission; New York State Attorney General- Charities Bureau; all participating LANDREX landmark organizations; LANDREX advisory board consisting of representatives of the participating landmark institutions, representatives of preservation organizations and others. In addition, all revenues from the sale of LANDREX participant’s TDR’s will be held in trust, prior to distribution to the landmarks.
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Our proposal satisfies New York State criteria that any new zoning regulation must be a “Comprehensive” or “Well Considered Plan” because of the following:
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LANDREX, Inc. will be a New York State Benefit Corporation or “B” Corp. “A benefit corporation, (or “B corp”) in the simplest terms is legally obligated to create benefits for both society and its shareholders.” According to New York State senator Howard Squadran who, along with speaker Sheldon Silver, introduced the law in 2011 creating the New York State Benefit Corporation, “by offering this opportunity to entrepreneurs and investors New York will bring new business into the state, new investors into the market, and a new socially minded approach to our entrepreneurs.” It allows CEO’s and founders of companies to do things with a company that help society, even if they don’t maximize profits.”
What this means is that LANDREX can focus on generating the maximum revenues for the landmark properties, not for itself.
Our initiative is an example of Social Entrepreneurship in action: “identifying or recognizing a social problem and using entrepreneurial principles to organize create and manage a social venture to achieve a desired social change.”
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*According to HR&A, Manhattan land values have almost certainly, increased since they conducted their analysis and thus the economic impact of the proposal is even greater than was projected 18 months ago. However, all projections are estimates.
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Chapter 3 - § 25-301
Purpose and Declaration of Public Policy
“It is the sense of the council that the standing of this city as a worldwide tourist center and world capital of business, culture and government cannot be maintained or enhanced by disregarding the historical and architectural heritage of the city and by countenancing the destruction of such cultural assets.”
“It is hereby declared as a matter of public policy that the protection, enhancement, perpetuation and use of improvements and landscape features of special character or special historical or aesthetic interest or value is a public necessity and is required in the interest of the health, prosperity, safety and welfare of the people.”
Chapter 3 - § 25-311
Maintenance and Repair of Improvements
“Every person in charge of an improvement on a landmark site or in an historic district shall keep in good repair: all of the exterior portions of such improvement and: all interior portions thereof which, if not so maintained may cause or tend to cause the exterior portions of such improvement to deteriorate, decay or become damaged or otherwise to fall into a state of disrepair.”
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