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The tenant group that is looking to purchase Peter Cooper Village and Stuyvesant Town in Manhattan from MetLife has found a loophole that they are desperately trying to exploit before the sale finalizes. Back in 1942 MetLife entered into an agreement with New York City not to make more than 6 percent on the complex in exchange for a 25 year tax reduction deal. Now the landlord group is trying to stop the sale based upon this agreement.

My guess, it isn’t going to change things but show down the deal. Ahhh, New York City politics.

The $5.4 billion sale of Stuyvesant Town and Peter Cooper Village could be derailed by a little-known provision that limits owner MetLife Inc. to make no more than a 6% annual profit on the vast Manhattan apartment complex.

Trautman Sanders, a law firm representing the tenant group that lost its bid to purchase the complex, discovered the condition in a 1942 agreement with New York City. According to the agreement, Met Life said it would keep its rents low, earning no more than 6%, in exchange for a 25-year city tax break.

City Councilman Daniel Garodnick, who opposed the sale of the complex to developer Tishman Speyer, has sent a letter to city Comptroller William Thompson, asking him to investigate. Mr. Thompson’s office is reviewing the letter.

“We received the councilmember’s letter and are taking a hard look at it,” said a spokesman for Mr. Thompson. “As you know, in recent months the comptroller has expressed serious concerns about the future of Stuyvesant Town.” Via Crains New York

Related posts:

1. MetLife Looking to Sell Peter Cooper Village and Stuyvesant Town in NYC?
2. Sold - Peter Cooper and Stuyvesant Town in Manhattan for 5.4 Billion
3. Stuyvesant Town and Peter Cooper Residents Watch Out - Change is a Coming
4. Peter Cooper and Stuyvesant Town Now Worth 5 Billion To Met Life?
5. Peter Cooper and Stuyvesant - The Back Story on a 5.4 Bl Deal