November 12, 2009

Inside Third & Bond: Week 108

Over at Third + Bond, we’re looking ahead to getting our Temporary Certificates of Occupancy (TCOs) as well as our Permanent Certificates of Occupancy (PCOs). ‘Cause even if the building is finished perfectly, no one can move in until the Department of Buildings says so. That say-so is issued in the form of a Temporary Certificate of Occupancy (TCO), and then a Permanent Certificate of Occupancy (PCO). The TCO may be granted following successful completion of a building inspection but before some details are finished and/or before all of the necessary paperwork makes it through the belly of the beast. For example, if the building is complete but we haven’t finished the sidewalk (Builder’s Pavement Plan) and we have a secure and clean temporary walkway for the inspector to pass from the public realm to the building entrance, then we’d expect to get a TCO. Or if the project is 100% complete but the engineer forgot to sign a TR-1 or there’s a backlog on PCO approvals, then we’d end up with a TCO instead of PCO.

The problem with the TCO is that...

...it expires in the near future. Each time it expires, we have to pay for a new one and pay for the expeditor to go get the new one. And if we let a buyer move in between TCO and PCO and heaven forbid they don’t listen to us and make changes to the property, we might have to start the whole process over again.

Then there’s the DOB factor -- getting an inspector appointment scheduled, getting the appointment kept, getting the follow up paperwork and notations in BIS (DOB’s building tracking website) and getting the actual Certificate. Only a crystal ball can see how that process will go.

Since Third + Bond consists of eight buildings, each with its own DOB filing, we will go through the TCO/PCO process as many times. In theory, the buildings are similar enough and will be completed in close enough time that DOB could look at a few of them at each appointment. But reality… it depends on the inspector’s time and inclination.

Another complicating factor in our TCO/PCO story is our construction sequencing. We have been working on Third + Bond from west to east. Problem: the boilers for all eight buildings are located on top of a Bond Street building. We could have six of the buildings west of Bond completed but if the building with the boilers doesn’t have a TCO/PCO, then nothing connected to it will get one. Now that we have TCOs on the horizon, we’re shifting gears and putting priority on the Bond Street buildings, as well as the first three townhouses which are already pretty far along.

In addition to the on-going construction work, we’re prepping for TCOs by putting together a check list of all the paperwork that needs to be in order – copies of surveys, tree planting permits, final tax lots, smoke detector affidavits, etc.

Where does our TCO preparedness exercise leave us? With the conservative expectation that we’ll have PCOs by Spring 2010, possibly some TCOs as early as February. Thinking of happily settled home owners at Third + Bond throwing open their windows to welcome the first warm summer breezes puts perspective on today’s chilly winter wind. It won’t be long…

Inside Third & Bond: Weeks 1-107 [Brownstoner]
The complete offering terms are in an Offering Plan available from Sponsor. File No. CD080490. Sponsor: Hudson Third LLC, 826 Broadway, New York, NY 10003.

Posted by Brownstoner at 11:31 AM | Comments (13)
Categories: Gowanus, Third & Bond Blog

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