Tag Archives: Conflict Story

Lights Out In Washington Heights: Local Business Shutdowns

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A wall scribbled with graffiti is all that is left of the strip of local businesses located on 163rd Street and Broadway. The Dominican family-owned restaurant which served the typical arroz con habichuelas y pollo alorno (rice, beans and chicken) lunch for over 40 years, along with the barber shop where hundreds of locals got their haircuts, were left with no choice but to close down. Facing the same issue on the block was Sebastian Income Tax and Multiservices Inc., an agency many would use to send money to their native country and file their yearly taxes.20151209_132932

Now, facing the tough task of starting their businesses all over again, this recurring issue is evidence of gentrification in the neighborhood. Small business owners who once catered to the people of Washington Heights were forced to relocate after the landlord who bought the new property refused to renew their leases.

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Fruteria El Buen Camino

One business remains. Fruteria El Buen Camino is the lone fruit market left standing, something even the owner, Thelma Santana, describes as a “miracle.” She recounts how it all happened. “Three years ago, this strip changed landlords, and every couple of months we would get notices saying that our leases would not be renewed.”

After multiple meetings between the business owners and Coltown Properties LLC – the new real estate company who bought the strip – her prayers were answered. Santana’s business would remain, while every other local shop on the block would be shut down.

Jose Campos, owner of Sebastian Income Tax & Multiservices, Inc. describes the relocation situation differently.  “We were like little children being bribed with caramel candies,” he said, when recounting how the previous landlord told the business owners their leases would be renewed, only to send them letters to vacate the premises within the month after the properties were sold. In 2012, investors Israel Weinberger and Steven Neuman of Coltown Properties LLC. bought five buildings from the previous landlord for about $31 million dollars, and business owners on the strip quickly saw the changes occurring. As to why Fruteria El Buen Camino is the last business standing, Mr. Campos believes it’s their location that brought them good luck. “We’ve heard rumors about the new lounge and real estate office that will take over where our small businesses once were, and I believe the fruit market’s square footage wouldn’t add or take away from their plans to remodel. In our case, we were on both sides of her business and had a larger space, something they needed to rent at a higher price.”

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Sebastian Campos in his new office

Washington Heights has gone through many changes in the last couple of years due to gentrification. With a rise in the non-hispanic population in the neighborhood, the cost of living is rising and as a result, rents for both businesses and apartments are increasing, uprooting locals and forcing them to relocate.

According to the 2010 census, 48.4 percent of the White/Non-Hispanic population is over the $60,000 yearly income range. This is in stark contrast to the Hispanic/Latino population with only 24.3 percent making over that amount, and an average 75.7 percent making under $50,000 in yearly income. Washington Heights has quickly become the new “it” neighborhood due to the now low crime rate and affordable rent by New York City standards. Chain businesses and cafes offering free wifi and espresso lattes are increasing in quantity, leaving the beloved ethnic spots who served the community for years at a loss.

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Punta Cana Restaurant stood on this corner for over 40 years

Angel Santos, owner of Punta Cana – The Dominican food restaurant – was paying $7,900 in rent before they closed down, instead of the $5,000 they were accustomed to. “We were told that if we wanted to keep this business, our rent would increase to $9,000 a month. We could barely afford the current rent. Now I’m 80 years old and retired,” says Mr. Santos. He recounts the crime and hardships he faced to open his business 40 years ago, driving a taxi day and night in order to save up to rent the space. In an effort to save his business, Mr. Santos took Coltown Properties, LLC. to court, a case that resulted in the judge’s ruling in favor of the new landlord. Representatives at Coltown Properties, LLC. were not available for comment, but of the case’s ruling, Mr. Santos says “In the blink of an eye, it was gone….we had to struggle here, and now I have nothing.”

With the 18.4 increase in the non-Hispanic population increase in Washington Heights over the last five years, new chain businesses are weeding out the current small businesses in the neighborhood. “We have no small business laws on our side” said Mr. Campos, who also filed a case against the new landlord along with Mr. Santos of Punta Cana Restaurant. “Thankfully we’ve relocated now, but we’re not on Broadway anymore, causing a drastic change in our foot traffic.” Sebastian and his wife remain hopeful that business will pick up, now that they’ve posted their relocation sign where their agency once stood.

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Victor Campos- owner of Fruteria El Buen Camino

For Thelma Santos of Fruteria El Buen Camino, the blessings “continue to pour.” The new landlord, Mr. Weinberger, of Coltown Properties, LLC has decided to renovate her entire market, to make the strip more appealing to the public. “It’s more than we could’ve asked for.We thank God everyday” she says. With the help of her husband, Victor Campos, she hopes to remain in the area for years to come,  offering the people of Washington Heights fresh, local produce.

For Punta Cana Restaurant and Sebastian Income Tax & Multiservices, Inc. the situation ended differently. In the midst of gentrification, Washington Heights is a neighborhood changing right before residents’ eyes. The beloved local spots are rapidly disappearing, and being replaced with mainstream shops and restaurants. The increase in income and non-Hispanic population has been a crucial factor in causing the gentrification, changing Washington Heights from a predominantly Caribbean population to a more diverse one. When asked what their thoughts were on the events happening in the neighborhood, all the small business owners had a similar opinion – change is always welcome, but Washington Heights is no longer the same neighborhood they once knew.

Local Businesses Being Shut Down in Washington Heights (Draft Lede and Nutgraf)

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163rd St and Broadway

A wall scribbled with graffiti is all that is left of the strip of local businesses located on 163rd Street and Broadway. The Dominican “mom-and-pop” restaurant which served the typical arroz con habichuelas y pollo alorno (rice, beans and chicken) lunch for over 40 years, along with the barber shop where hundreds of locals passed through for a haircut, were left with no choice but to close down. Facing the same issue on the block was Sebastian Income Tax and Multiservices Inc., an agency many would use to send money to their native country and file their yearly taxes. Now facing the tough task of starting their businesses all over again, this issue is all too common in the neighborhood due to gentrification. Small business owners who once catered to the people of Washington Heights were forced to relocate after the landlord who bought the new property refused to renew their leases.


One business remains. Fruteria El Buen Camino is the lone fruit market left standing, something even the owner, Thelma Santana, describes as a “miracle.” She recounts how it all happened. “Three years ago, this strip changed landlords, and every couple of months we would get notices saying that our leases would not be renewed.” After multiple meetings between the business owners and Coltown Properties LLC – the new real estate company that bought the strip, her prayers were answered. Santana’s business would remain, while every other local shop on the block would be shut down.

20151209_133149

Fruteria El Buen Camino

Jose Campos, owner of Sebastian Income Tax & Multiservices, Inc describes the relocation situation differently.  “We were like little children being bribed with caramel candies” he said, when recounting how the previous landlord told the business owners their leases would be renewed, only to send them letters to vacate the premises within the month after the properties were sold. In 2012, Coltown Properties LLC bought five buildings from the previous landlord for about $31 million dollars, and business owners on the strip quickly saw the changes occurring.

Washington Heights has gone through many changes in the last couple of years due to gentrification. With a rise in the non-hispanic population in the neighborhood, the cost of living is rising; as a result rents are increasing, uprooting locals and forcing them to relocate.

According to the 2010 census, 48.4 percent of the White-householder population is over the $60,000 yearly income range. This is in stark contrast to the Hispanic/Latino population with only 24.3 percent making over that amount, and an average 75.7 percent making under $50,000 in yearly income. Washington Heights has quickly become the new “it” neighborhood, due to the now low crime rate and affordable rent by New York City standards.

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Corner where Punta Cana once stood

Punta Cana – The Dominican food restaurant – was paying $7,900 in rent before they closed down, instead of the $5,000 they were accustomed to. “We were told that if we wanted to keep this business, our rent would increase to $9,000 a month. We could barely afford the current rent. Now I’m 80 years old and retired” says Angel Santos, owner of Punta Cana, the last restaurant that was forced to shut down after not finding another spot to relocate to.

 

Minorities Forced to Move as Rent Prices Raise Over Night

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The train slowly crawls out of the tunnel, finally seeing the light of day for the first time since it’s entered Manhattan. Out of the window, the Manhattan city skyline becomes visible and the train moves farther away from the skyscrapers and closer to the plateaus of the apartment buildings of Astoria, Queens. The deeper the train dives into Astoria, the more homogeneous the riders become, losing its diversity with the riders that get off the train every stop along the route before meeting the heart of Astoria.

“I really used to enjoy living there.” high school student, Debbie Santiago states. Debbie and her family recently moved out of Astoria due to increases in their monthly rent that soon became a payment that was too costly to live by.

Santiago and her family, a family of five, lived in Astoria for about ten years before they had no choice but to move out. There was no limit to the rent price Santiago’s landlord could put on her family’s apartment rent ever since the removal of the rent price ceiling by Governor George Pataki.

The removal of the rent ceiling pricing policy allows landlords who previously owned apartment buildings with a rent ceiling to apply to have the it removed. When removed, landlords were given the freedom to raise rent as frequently as they wish, and by as much as they want. This is something that jeopardizes diversity and pushes out poorer tenants who cannot keep up with increasing prices.

Astoria was recognized for it’s diverse demographics, and has even been named one of the most diverse neighborhoods in the world. 54% of Astoria’s demographics consist of minority races, diverse demographic in Astoria is at risk as rising rent prices push out minorities of lower income (2010 Census). Astoria seems to be progressively becoming a neighborhood for upper-middle class and upper middle class residents.

“I usually set up my tenant’s payments so that a majority of them pay at the first of every month,” Peter Blidy, the landlord of an apartment building on Newtown Ave states. “I do have a rent ceiling on my building, so my rental prices never really leave the $1500-$1600 monthly rate.”

Peter Blidy has owned his apartment building for about twenty years and faces less tenant turnover because of the rent ceiling. The stabilization of rent pricing meaning that his tenants can afford to live in his building for longer periods of time due to very little changes in rent. Blidy notes that he has a diverse range of tenants living in his building, something that he takes pride in.

“In the building next to me, I see more people move out than actually move in.” Blidy comments when asked about his knowledge of rentals and tenants in nearby apartment buildings. The building that he is referring to is one that does not have a rent ceiling pricing policy.

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Blidy’s building (left) and the building with no rent control policy (right)

When comparing the two buildings visually, there appears to be no difference between Blidy’s apartment building and his neighbor’s. However, there appears to be a stark difference in pricing. According to a local real estate agency, apartments in the neighboring building have an average monthly rent price of $2300, an amount that is almost $1000 greater than that of a rent controlled apartment. The real estate agency also confirmed that most of the apartments that are rented in Astoria have decontrolled rents.

For landlords, rent ceilings allows for more freedom in the leasing and governing of their apartments and who lives in them. Rent ceilings do allow landlords to quickly evict tenants who are consistently behind on rent, so that they do not lose out on rent money they were supposed to receive.

Nick Gayle, the landlord of the apartment building in which there is no rent control comments, “Not having a ceiling on my rent allows me to adjust the rent I need in order to fund the buildings maintenance costs, which do increase from time to time.”

However, it’s interesting to see that there are such large price differences between neighboring apartment buildings, buildings surrounded by exactly the same resources as each other in the neighborhood.

The after affects of the rent ceiling removal is actively affecting families like that of Debbie Santiago, in that more minorities are being driven out of their homes due to uncontrollable increasing rent.

 

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Conflict Story Pitch–Astoria

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Dear Editor,

This semester, I’ve chosen to focus on Astoria, Queens and have been able to conduct a background study of it, as well as profiles of an Astoria resident and a local business. Astoria is known for it’s diversity and it’s busy avenues packed with an eclectic sort of stores and restaurants. However, Astoria’s diversity seems to be in jeopardy as rent prices raise, pushing out minorities, and enforcing a more predominantly white neighborhood.

The removal of the rent ceiling policy is to blame, as apartment complex owners are now free to charge their tenants as high a rent as they would like, with no repercussions. In order to get better prospective of this, I plan to get a closer look at the situation through an interview with an apartment complex owner. Peter Blidy has owned an apartment complex in Astoria on Newtown avenue for about twenty years, and would serve as an excellent primary source to see just how the renting in Astoria has changed over the years. He would be able to provide first-hand insight on the issue and possibly provide a reason for why some owners chose to raise their rent. Tenants of Astoria may also be a voice that I can include in my story since it will gain insight to how much of an inconvenience higher rent can be and whether or not it will drive them to move.

It’s important to find out why rent seems to be rapidly increasing and what this means for Astoria and it’s residents.

 

Sincerely,

Anita Bissoon

Conflict Story Proposal-Lenox Hill

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Many New Yorkers joke that the Second Avenue Subway project has been in the works since 1904 when the subway first opened and will never be finished, but the city has promised construction will cease in 2016.

When construction began, Second Avenue’s businesses and residents have suffered it’s consequences. Countless businesses have closed due to the restricted sidewalk space, traffic and it’s noise has increased exponentially, and residents have long endured the noise, vibrations, and smoke from the construction.

Since most of the actual drilling and heavy work is almost complete, there has been a slight revival on the Upper East Side, where the construction has hit the hardest. Restaurants are occupying spaces that were left vacant due to the construction, units are finally renting again, and residents are happier not having to deal with the noise and hassle of constant construction.

I would write about the conflict itself in great detail, and then profile a resident and a restaurant who have since benefitted from the so-called “revival” of the Upper East Side around Second Avenue Subway construction.