By Patrick Hedlund
DNAinfo News Editor
STUYVESANT TOWN — A move to turn Stuy Town and Peter Cooper Village into a co-op partially owned by the people who live there has taken another step forward after an investor wrote to the tenants association with details of its proposal.
William Ackman’s hedge fund Pershing Square Capital sent the letter to the tenants association Sunday indicating the creditor wants to move forward with a plan that would allow tenants to supposedly by their apartments at an affordable rate without the threat of eviction.
The proposal, which was not outlined in detail in the letter, said it would include a “substantial equity ownership interest in the property” for the tenants association without it having to put up any money.
“The Tenants Association will not be required to contribute any capital to obtain its ownership position,” read the letter, which was signed by Ackman.
The hedge fund also proposed that the tenants association "would have full veto rights with respect to all major decisions," including the ability to strike any proposed pricing of co-op units.
Pershing Square Capital is currently awaiting a Manhattan Supreme Court judge’s decision expected on Sept. 23 regarding its battle with majority creditor CW Capital for the right to auction the 80-acre site.
CW Capital began to reach out to residents last month about its own planned co-op conversion of the complex.
Residents at Stuy Town have been careful not to take a side in the ongoing dispute. Their main focus is keeping Stuy Town affordable for middle-income residents.
“No matter how you turn it, affordability is non-negotiable,"Councilman Dan Garodnick, who represents the complex and is a lifelong resident of Peter Cooper Village, said in a statement.
"Rents and home ownership must remain in reach for current and future residents."
Longtime tenants of the complex said they were waiting to hear full details of the plans for converting to a co-op.
“The general outlines of the plans really don’t tell you much,” said Soni Fink, a nearly 50-year resident who is also a member of the tenants association.
“If there’s a conversion, I want to know how much per square foot.”
