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Six Atlantic Ave. BuildingsMay Go at Bargain PricesDevelopers Will Pay$3,000 for PropertiesSome of the buildings which are being sold by the City for $500 each,located on Atlantic Avenue between Third and Fourth Avenues. Aboveare 533 and 535; below is 525. |Richard Solomon Photos]The other development by the proposed Atlantic Avenue group isthis structure at the foot of Fulton Street in the Fulton Ferry area,below the Brooklyn pier of the Brooklyn Bridge. No work has startedhere. (Richard Solomon Photo]D.A. Gold to AddressHeights AssociationThe 64th Annual Meetingof the Brooklyn HeightsAssociation will take place onTuesday evening, May 21 at8 p.m. The setting will behistoric Plymouth Church ofthe Pilgrim s, located onHicks and Orange Streets inBrooklyn Heights.The feature event of theevening will be the keynoteaddress Ho finest sneaker.Brooklyn District AttorneyEugene Gold. There willalso be a brief businessmeeting which will includeelection of Governors and theawarding of property improvement citations.Chairpersons of the Association%u2019s nearly two dozenLworking committees wiii beon hand both before andfollowing the meeting toafford a first hand opportunity for members andnon-members to ask questions, make suggestions andexchange ideas. They will bepleased to discuss any topicof community interest andw ill welcome suggestions.Refreshments wiii be served.The public is invited toattend the Annual Meetina.Members are urged to bringfriends. Non-members aswell a$ members are invitedto attend.iIf any members would liketo be escorted to or from themeeting, please call theAssociation office at%u2022 II r \\ A -l A A %u201e i I ____ * 1 _ _J _ Ut_ 0-3130 m least iwu uaysbefore the meeting.Another interested party was PHOF.N1X publisher Michael A. Armstrong, \need too much work. We just couldn%u2019t raise the cap ital.1' Armstrong also says that another proposal was referred to in his discussions with Goldberg.%u201c It's really very simple.\Goldberg. %u201cZutalors |a development corporation formed in February, 1974] came in first with a detailed 40-page proposal and the ability to attract investors. It made sense to us.\The Zutalors proposal calls for the creation of 32 moderate-income apartments, and six stores. Since the proposal states that %u201c total investment per building ranges from approximately $95,000 to $113,000,%u201d proposed rents from $180 to $250 per apartment and $150 per store hardly seem feasible. But the proposal makes it all quite clear:\ISection 167K| provides for an accelerated rate of depreciation for rehabilitation expenditures, part of a ipcuai iiw-ycar uGuSiug ir.ccr. tive program which will expire on January 1, 1975. . . . Since . . . no cash profits are foreseeable in the first five years of the project, the tax shelter benefits will constitute the only economic gain from this project and therefore assume major importance . . . It is a better allocation of the City's funds and a better use of the lender's and investor%u2019s funds if a writedown [to $500 per building] is utilized to stimulate a socially beneficial project rather than . . . $13,000 apiece . . .\Under the IRS program, rents for the first five years would be set at moderate-income levels as defined by the Federal Government (approximately $9,000 to $13,0(X) per year). After that, Zutalors would be entitled to increases each year by one-fifth of the rise in the Cost of Living Index from the first through the fifth year, plus other raises allowed under the program.After ten years, the buildings would become exempt from any type of control, and rents would January, 19/4. but according to reach their market level. Zutalors Richard Rosan of the Office of has agreed that should the build- < o s i i m i n os t>,\\<,s ?:...................... ...................................................................................... ......miiimiiiiiuMmiiMnmmmmiimiiimiuimmumttmiings be sold within the first ten years, the City would take part of the profit.Some are calling this deal a giveaway, pointing to the Citygovernment connections of two of the Zutalors partncrs--F.dward C. Foss, concessions adm inistrator with the Parks, Recreation and Cultural Affairs Administration from March, 1973 to February, 1974; and F. Anthony Zunino, assistant project manager with the City%u2019s Economic Development Administration from July, 1970 tom165 Atlantic Avenue Brooklyn. New York 11201 Tel 643-1032serving the neighborhoods Surrounding Downtown Brooklyn, including Boerum H ill. Brooklyn Heights. Carroll Gardens. Cobble Hill, Fort Greene and Park SlopeSubscription rate is S5 00 per yearThe entire contents of THE PHOENIX are cot ynghtod and may not be reproduced in a rn m m u n ity n P w ^m n P t published any form without express permissionweekly except the first week of ___ . , A pplication to MaM at Second Class July and the last w e ek of August Postage Rates %u00abs Pending at Brooklyn. Newby Advocate Press. Inc . York%u2022.VHUMmttiMmiiiiimitttfttiBY DAN ICOLARISix Boerum Hill buildings at $500 apiece--thaf s what the City's Housing and Development Administration will charge a private developer if the Board of Estimate approves the deal at a public hearing tentatively set for June 7 at City Hall in Manhattan.The Citv-owned 19th-century storefront buildings are on the north side of Atlantic Avenue between Third and Fourth Avenues at the western tip of the Atlantic Terminal Urban Renewal Area. The $500-per-building pricetag is a real bargain, considering the buildings are only one block from the transportation hub of downtownBrooklyn, the new Baruch College, and other major revitalization.The post office across the street has just gotten a badly needed facelifting; a crumbling garage has been demolished; the newly rechi, -ged YWCA around the corner offers a wealth of activities day and night. Steve%u2019s Restaurant at the corner of Third Avenue has renovated and moved into new quarters from its former location on State Street, and is doing so well its owners are talking about expanding again. All signs point logically toward the continued eastward march of antique and other shops down the Avenue.Yet Atlantic Terminal%u2019s Project Director Marvin Goldberg sayshe's had a hard time unloading these buildings, though admittedly at a considerably higher price- $13,000 to $15,000 per building. %u201c In 1972,\newsletter to about 1,000 people. We received about 15 replies and selected several sponsors for individual buildings. But when it came time to file plans or to come up with the money, not one was able to proceed.\So Goldberg entertained proposals from developers on the entire package of six buildings at a price of $13,000 each. One of those who expressed interest was Boerum Hill resident Tom Butson. %u201c At first they were very encouraging,%u201d he says. %u201c They offered to assist me in getting financing-not that they%u2019d finance it for me, but that they%u2019d help with contacts. So I went ahead and hired an architect and started preparing the designs and proposal; it was pretty complicated.%u201d But a month ago, Goldberg%u2019s office called Butson and told him not to proceed-HDA has received a proposal it was considering seriously.May 16, 1974, PHOENIX, Page 3