A Newsletter is on its Way to Owners

The text below is from a newsletter we are preparing to mail out to all unit owners.

October 26, 2005

Dear Owners:
We hope you've had a good summer. We've been very busy. Here’s a brief summary of what’s going on. Please remember there are developments almost every day.

FINANCIAL MATTERS:
New Accountant:
We have retained a new accountant, Bill Rank of Bloom & Streit, LLP, to help us assess the financial condition of the condominium, establish an appropriate operating budget, and review the high number of unpaid bills.

Unpaid Bills:
We discovered that many of the condominium’s bills over the past two years have simply not been paid. The condominium’s accounts payable ledger contains accumulated unpaid bills totaling about $407,000. Some of the bills date back to October, 2003. This debt is equal to about 30% of the common charges collected in a year. There is no record as to why payments were withheld. Our representatives at Cooper Square Realty Inc. (“Cooper Square”), the new managing agent, are currently trying to verify each unpaid bill. Cooper Square’s employees are also spending an inordinate amount of time dealing with vendors whose bills are long overdue. In some cases, Cooper Square has been able to set up payment plans with vendors.

Arrears:
Several owners had fallen substantially in arrears, and no action had been taken to bring their accounts current. Cooper Square has initiated a program to ensure that owners' accounts are current. Monthly payments of common charges are the chief source of income for the condominium, and everyone must carry his or her proportionate share of the total each and every month.

Cost Control:
Our new managing agent and accountants are reviewing the costs incurred to operate the condominium on a daily, weekly, monthly and annual basis. We are exploring ways to increase income, control expenses, manage payables and receivables, and rebuild our depleted reserve fund. Competitive bidding will be required for any substantial work which is to be performed.

NEW BOARD MEMBERS:
Following the resignations in April of board members Stanley Stein, David Roth and Albert Silberfeld, as well as the resignation of the managing agent, Rudd Realty Management Corp., the remaining board members, Diana Moore, Altan Kolsal, and Ronald Giustino acted quickly to fill the vacancies, in accordance with the condominium’s by-laws. They appointed Barbara Marder, Nancy Cherner, Raymond Joe, Jared Danziger, and Juan Villanueva. Our newest member, Mr. Villanueva, is a new owner. He is a senior financial analyst and we are excited to have him on the board.

NEW MANAGEMENT:
In July, we retained Cooper Square as the condominium’s new managing agent. If you have any questions, concerns, or issues with them, please let us know. We want your feedback.

THE SUPERINTENDENT:
In early August, an arrangement was made with Joe Martin. He left his post as superintendent on September 9th and vacated the superintendent’s apartment on September 15th. Mr. Martin filed a lawsuit against the board of managers and the condominium seeking damages of $10 million. Attorneys were appointed by the condominium’s insurance carrier to defend the action, and last week they filed a motion to dismiss the action as baseless. We have begun our search for a new superintendent. If you are interested in joining our hiring committee, please contact us. Kindly let us know if you have any referrals.

GETTING OUR HOUSE IN ORDER—WHAT'S NEXT:
We are working actively with the condominium’s advisors to restore the condominium to fiscal health. We are working on the agenda for the 2005 owners’ meeting, and plan to schedule the meeting very soon. We welcome the input and participation from any and all interested owners at any time, but especially at the owners’ meeting, where we will need a quorum of owners attending either by proxy or personally. Please keep us in mind. If you wish to reach us, leave a note for us at the front desk or send us an email from the condominium’s website, www.45west67condo.blogspot.com

Best Regards,

Nancy Cherner (24C), Jared Danziger (7B), Ron Giustino (24A), Raymond Joe, Altan Kolsal (9H), Barbara Marder (30A), Diana Moore (31A), Juan Villanueva (27D)

Change in Management Team

There is a small change in Cooper Square's team directly responsible for our building. Laurie Weinstein's duties are taken over by Loretta Rose. Her contact information is as follows:

Office: 212 634 8906
Fax: 212 634 3946
email: loretta.rose@coopersquare.com

Ms. Rose will be assisting Yvette Diaz and Keith Werny.