A legal battle over a proposed $30-million parking lot sale at an East Village co-op in New York has escalated, with a shareholder taking the complex to court while questioning an almost $16-million decline in its reserves, the New York Post reported.Sebastian Kot, a resident of Village View, has filed a books-and-records proceeding in Manhattan Supreme Court involving the seven-building Mitchell-Lama complex, located just south of Tompkins Square Park.In his petition, Kot alleges years of governance problems at the co-op, including missing or inaccurate meeting minutes, conflicting financial disclosures and repeated refusals to provide corporate records, according to NY Post.Kot told the NY Post that the court case was an effort to seek greater transparency and ensure that the issues raised in his petition were subject to judicial review.The dispute comes as Village View seeks to sell Parking Lot 7, located next to 40 First Ave., for an estimated $30 million after taxes. The board says the sale would help the development eliminate annual debt and recurring expenses, meet rising costs, add to its reserves and preserve the affordability of its 1,236 units.But Kot is also questioning the co-op’s finances. A September 3rd presentation by the Village View Housing Corp board showed its reserves falling from $18.6 million in 2021 to $2.9 million in 2026, according to a court exhibit cited by the NY Post.Kot has sought documents to understand the reasons behind the decline. He said shareholders could decide what action to take once the records were made available.In a letter to residents, the attorneys said the documents sought by Kot were “privileged and/or constitute confidential and sensitive corporate records”, according to a court exhibit.
Why the parking lot sale is disputed
Village View stretches between East Second and East Sixth streets and First Avenue and Avenue A. Parking Lot 7 measures about 100 by 230 feet and contains roughly one-third of the complex’s 345 parking spaces, according to the co-op’s land-use attorney Jodi Stein, who previously spoke to the Post.Kot argues that the proposed sale requires approval from two-thirds of Village View shareholders under New York’s Business Corporation Law. He is challenging whether the transaction can proceed without such a vote.The proposed sale has already drawn opposition from residents. Hundreds of shareholders signed a petition in June seeking greater transparency over the sale and redevelopment of the lot.The dispute has also involved questions over parking rights. Earlier in September, a disabled Village View resident sued the housing corporation over a new parking agreement, arguing that it could allow the co-op to remove him from his space in Parking Lot 7, the Post reported.
