News and Notices

Letter from the President, December 2007

Dear Shareholders,

I’d like to start by thanking those of you who attended the Annual Meeting in October. The meeting included the presentation of the annual financial statement, the president’s report, the election of the Board of Directors, and a Q&A session. The election of Board members was uncontested, and resulted in the same individuals: Patti Devine, John Grant, Giulio Mazzarelli, Avo Samuelian, and myself.

As this year draws to a close, I want to take a moment to highlight the capital improvement goals we accomplished last year. Early in 2007, we successfully completed the periodic façade inspection and maintenance required by New York City Local Law 11. We also conducted a thorough renovation of our hallways complete with a new color palette, new light fixtures, new signage and a series of beautiful photographs generously donated by Mr. Matsumoto (#20B) that currently hang in each floor of our building.

On the exterior, we started off the year by securing the retail vendors we were looking to acquire and renewing existing contracts for the next 10 years. The storefronts also went through a significant renovation to unify the Third Avenue and 16th Street façades with a stepped granite base and Indiana limestone slabs. New light fixtures and roll-down gates were installed as well as a new, cohesive awning system. The same treatment was later implemented for the entrance of the building and a new entrance awning canvas replaced the old one. Lastly, we repaved our damaged sidewalks and are in the process of putting the finishing touches on the tree guards. We are also happy to report that the catch basin in the corner of Third Avenue & 16th Street is scheduled to be re-opened next year by the Department of Design & Construction.

With all of this work completed and paid for, I urge you to read the Treasurer’s Report article by John Grant, which highlights the good standing of our current financial situation.

In this holiday issue of the Quarterly, we launch a new neighborhood coat drive initiative to benefit the patients of Beth Israel that is spearheaded by Jennifer Collins (#12G). Also in this issue, we feature Sally Spa as part of a series of “retail profiles” in an effort to help generate more business and awareness for our retail partners. As you may have noticed, competition is fierce in the neighborhood, and we must support our stores, because the better they do, the better we do as a co-op.

Looking forward to next year, we anticipate the roof replacement work to be completed in early January, weather permitting, and have begun discussions to beautify the courtyard in the back of the building and to renovate our lobby to improve storage, safety and traffic flow

As always, I want to express my appreciation for the valuable contributions of our shareholders (too many to include in this letter), our great staff and our partners at Lovett over the past year.

EBest wishes to you and your families for a safe holiday season and prosperous new year.

Sincerely,

Rafael Weil

Treasurer’s Report by John Grant

Dear Shareholders,

As we approach the end of 2007, we will finish the year in solid financial shape. We will have about $2 million in cash reserves and should finish the year with a $200,000 budget surplus.

The budget surplus is due primarily to the revenue generated by the flip tax from apartment sales. The rising prices for apartments and the number of apartments sold this year exceeded our budget plan, leading to this favorable position.

The other good news is that all the retail spaces have been filled, and those tenants are providing a substantial monthly income that we didn’t have for much of last year. Given our strong financial position, the Board does not anticipate a maintenance increase at this time. However, there are several factors that could adversely affect our budget for 2008 and affect this decision.

• One is the rapidly rising price of fuel, which has already increased our heating costs substantially.

• The second is real estate taxes, which will be re-assessed by the city sometime in early 2008.

• The third is the real estate market slowdown. If prices and/or the number of sales drop substantially, that will affect our flip tax revenue in 2008.

The Board is monitoring these and other financial issues with management in determining our budget for 2008. As always, the Board and management will be looking to maintain the financial health of our co-op, while continuing to improve and successfully manage the day-to-day operation of the building.

Holiday Tips

Holiday Tipping for Staff: Every year around this time, residents start asking the Board of Directors and each other about it, and etiquette experts turn out charts indicating the appropriate tip for those whose services we couldn’t do without.

How much to give is a personal decision based on your own budget and experience with the service, but remember that we do live in a full-service building and we value all our employees. The following are useful links regarding tipping:

*Emily Post Holiday Tipping Guide
*The Original Tipping Page *CNN Money - Holiday Tipping
*MSN Money Central - The fine art of holiday tipping
*Bankrate.com - Tips for holiday tipping

Holiday Parties: If you plan to host a large holiday party or gathering, kindly alert the door staff in advance and consider providing a guest list for use at the front desk to facilitate the entry of your guests when they arrive at the building. In holding any such event, please be considerate of your neighbors.

Use of Holiday Lights and Candles: Please ensure that when using holiday lights the extension cord is not frayed and that lighted candles are always maintained at a safe distance from any drafts or flammable materials. In addition, please ensure that lights (especially those on your Christmas tree) and candles are always unplugged or extinguished whenever you leave the apartment or go to sleep.

Hallway Decorations: As you prepare for the holidays, some residents are tempted to decorate the area outside their apartments. We want to remind you not to place any holiday decorations in the common hallways. These include, but are not limited to, wreaths, trimmings, lights, candles, menorahs, signage, holiday cards and statues. The common hallways have recently been renovated and they must remain free of personal decorations pertaining to the holiday season. Additionally, floor mats are not permitted outside your apartment door. They are considered a fire code violation and could cause a tripping hazard in the event of an evacuation.

We hope this information is useful, and we wish you all a happy and safe holiday season.

200 East Neighborhood Coat Drive

		During the month of December, our building will be conducting a coat drive to help patients in need at Beth Israel Medical Center. Kindly bring any coats you wish to donate to the lobby and a staff member will set them aside for distribution to the disadvantaged men, women and children at Beth Israel. The last day to donate will be December 31st. Help us make a difference!