Page images
PDF
EPUB

Dock Department-Lease to the New York Dock Company of Property at the

Foot of Joralemon Street and at the Foot of Montague Street, Borough of Brooklyn.

(Brought up by unanimous consent.) The following was received from the Commissioner of Docks:

January 8, 1916. Hon. John Purroy MITCHEL, Mayor and Chairman of the Commissioners of the Sinking Fund:

Sir-I beg to recommend that the Commissioners of the Sinking Fund approve of and consent to the execution by the Commissioner of Docks of the following described lease:

Lessee-New York Dock Company, a corporation organized under the laws of the State of New York and having its office at the corner of State and Whitehall Streets, Borough of Manhattan, City of New York.

Description of premises-Parcel A: Property owned by the City at the foot of Joralemon Street, Brooklyn. Parcel B: Property now under condemnation by the City at and near the foot of Montague Street, Brooklyn, as both parcels are more particularly described in the memorandum attached hereto.

Term-Ten (10) years with privilege of four (4) renewals of ten (10) years each.

Rental-Five and thirty-nine hundredths per cent. (5.39%) of $235,000. The rental of the Parcels A and B shall commence when the lessee is placed in possession of each parcel respectively, and the rental for the two parcels shall be apportioned in a manner to be agreed upon between the lessee and the Commissioner of Docks.

Structures-The lessee will proceed with the building of piers and sheds over the tunnels at Parcels A and B as soon as the company is placed in possession of the leased parcels, said piers to be built as shown on the New Plan for the improvement of the waterfront between Orange and State Streets, which Plan is now under consideration by the Commissioners of the Sinking Fund, the structures to be erected in accordance with plans and specifications to be submitted to and approved by the Public Service Commission and the Commissioner of Docks and the work to be done under the direction and supervision of the person or persons designated by the Public Service Commission and the Commissioner of Docks,

Taxes-In addition to the amount above reserved as rent, the lessee shall pay the tax rate fixed by the proper authorities on the assessed valuation of all structures erected in pursuance of the provisions of this lease.

Cancellation The City of New York shall have the right to acquire the wharf property owned by the New York Dock Company, its successors or assigns, between Fulton Street and Atlantic Avenue on the East River, Borough of Brooklyn, City of New York, at any time after the date of the commencement of the lease, and upon the date of the vesting of title to said property in the City of New York, this lease shall be cancelled and annulled and the lessee will surrender possession of the demised premises to the City and no claim for damages or compensation in favor of the lessee by reason of the termination of the lease, or such interest, or to or on account of any structure or improvements that may have been erected or made by the lessee on the demised premises shall at any time be made by the lessee or any person claiming through the lessee, except that in such event the City shall reimburse the lessee for the cost of the improvement made in pursuance to this lease, less depreciation. The City of New York shall have the right to acquire the wharf property owned by the New York Dock Company, its successors or assigns, between Montague Street and Atlantic Avenue on the East River, Borough of Brooklyn, City of New York, at any time after twenty-five years from the date of the commencement of the lease, together with the land under water contiguous thereto and on both sides thereof which shall be necessary for the proper operation of the said wharf property, including the bulkheads and proper access thereto, and upon the date of the vesting of title to said property in the City of New York this lease shall be cancelled and annulled and the lessee will surrender possession of the demised premises to the City and no claim for damages or compensation in favor of the lessee by reason of the termination of the lease, or such interest, or to or on account of any structure or improvements that may have been erected or made by the lessee on the demised premises shall at any time be made by the lessee or any person claiming through the lessee, except that in such event the City shall reimburse the lessee for the cost of the improvement made in pursuance to this lease, less depreciation.

Termination of Lease-Upon the termination of the relation of landlord and tenant hereunder, the City shall acquire the land under water of the tenant upon or over which any part of the piers are constructed, together with the land under water contiguous to the piers and on both sides thereof to a line which shall be equidistant from the respective outer lines of said piers and the piers next adjoining, including the bulkheads and proper access thereto. In case the parties do not agree upon the purchase price to be paid by the City therefor, this purchase price shall be determined by arbitration in the usual manner. In the event that arbitration shall fail for any reason, then the City shall acquire said property by the exercise of its right of eminent domain.

Reservations—There shall be excepted and reserved from all of the premises leased a permanent and perpetual right or rights of way and easements and the appurtenances thereto, as required by the Public Service Commission of the First District.

Remaining Terms—The remaining terms and conditions, except in so far as they are inconsistent herewith, shall be similar to those contained in leases of wharf property now used by this Department, form of which lease shall be approved by The Corporation Counsel. It being understood and agreed that the lease shall be of no force or effect until the property described in the lease shall be legally transferred to the custody, control and jurisdiction of the Commissioner of Docks. Yours Respectfully,

R. A. C. SMITH, Commissioner of Docks.

Department of Docks and Ferries, December 6, 1915. Hon. GEORGE MCANENY, Acting Mayor, and Chairman of the Commissioners of the Sinking Fund:

Sir-In compliance with your request for a report in the matter of the property of the New York Dock Company required by the Public Service Commission for rapid transit tunnel purposes, I am submitting herewith a statement outlining the situation to date.

In the latter part of May of this year I was compelled to condemn pier property of the New York Dock Company as unsafe to life and property. The then tenants, the New York & Cuba Mail Steamship Company., joined with the New York Dock Company in an appeal for a modification of the order of condemnation in order to give the steamship company time to secure a proper location. In order to interfere as little as possible with the business of the two concerns I modified the order so as to extend the use of the piers for a period of sixty days under conditions which carefully restricted loads which could be placed upon the structure.

The steamship company then entered into negotiations with the Dock Department, requesting it to aid in securing adequate and safe piers, as their business had been greatly handicapped by the deplorable condition of the Dock Company's property. Soon after this request by the steamship company it entered into negotiations with the New York Dock Company for the construction by the latter of new piers and plans were submitted to the Dock Department as required by law. Before the Board of Directors of the steamship company had formally ratified the agreement with the Dock Company and before the pier plan had been formally adopted by me as Commissioner of Docks, the Dock Company withdrew its proposition and began negotiations with the Public Service Commission. The negotiations occupied several months and finally culminated in the proposed form of agreement submitted to the Commissioners of the Sinking Fund for ratification on November 3rd. During the period of negotiation with the Public Service Commission I was informally advised by the officials of the New York Dock Company that the agreement, if reached, would provide among other things that the said company should build suitable piers over the rapid transit tunnels, thus meeting the objection that I had raised from time to time when asked for an informal expression of the attitude of the City relative to any proposed new pier plan for the Brooklyn waterfront. It was not, however, until the proposed agreement was submitted to the Commissioners of the Sinking Fund and a copy forwarded to me by the Chairman of the Public Service Commission that I was called upon to express officially my views relative to the terms of an agreement between the City and the Dock Company. The Mayor requested me to report to him upon the agreement submitted by the Public Service Commission and he had named the Monday prior to the Sinking Fund meeting at which it was to be brought up as the time for a conference at which the whole matter could be gone into in detail. On that day, as your Honor knows, the Mayor was seized with an acute attack of appendicitis and was operated upon.

At the Sinking Fund meeting, at which you presided, the president of the New York Dock Company took the position that unless the agreement was approved there and then it must be considered withdrawn. Later on, however, at a conference with you it was agred that I take up the negotiations with the New York Dock Company on a basis other than the sale of the property acquired or to be acquired by the City for tunnel purposes.

You are fully cognizant of the negotiations conducted by the Public Service Commission but in order to make this statement complete I will refer to them briefly so

[graphic]

far as they bear upon the waterfront property. The Public Service Commission agreed to purchase from the Dock Company an easement through wharf property and land under water at the foot of Clark street for $275,000, and to sell at public auction property at the foot of Montague street which the City was acquiring through the Commission conditioned upon an agreement with the New York Dock Company to bid not less than $75,000 for that parcel. At the same time it was agreed to sell at public auction City property at the foot of Joralemon street upon an agreement by the Dock Company to bid $25,000.

It is not denied that the only bidders for the property would in all human probability be the New York Dock Company. Hence the price named in the agreement must be the measure of the amount that the City would realize if it was found necessary to accept the terms of the agreement proposed by the Public Service Commission. If. however, it is decided in accordance with the consistent policy of the City that the wharf and dock property acquired by it should not be sold, then the logical thing to do is to lease it and it is upon these lines that I have conducted my negotiations up to the present time with the Dock Company. The company has tentatively agreed to the leasing of the Montague street and Joralemon street parcels at a rental råte fixed at 5.39 per cent of the assessed value of these properties. They state the assessed values of the parcels involved to be: Montague street, $175,000; Joralemon street, $59,000. Total, $234,000. On the basis proposed the total rental would therefore be $12,612.60, a much greater return than could possibly be obtained through the proceeds of a sale at $100,000.

The Dock Company takes the position that they prefer to retain the Clark street property and deal with the Public Service Commission on the basis of an easement which they now claim should be fixed at a much greater figure than the sum of $275,000, placed upon it in the agreement originally presented to the Sinking Fund by the Public Service Commisison.

The Clark street situation may be summarized as follows: The land under water in the slip is 200.28 feet wide and is assessed at $120,800. The taking of this slip destroys the use of the south side of Pier No. 9 and the north side of Pier No. 10. Hence it is advisable, in order to escape heavy consequential damages, that the City acquire a parcel which would include both of these piers with their sheds, together with the land under water and the bulkhead right. The assessed value of this parcel, $487,200, is made up as follows: Pier No. 9, $111,200; Pier No. 10, $109,300; lana under water between Piers 9 and 10, $120,800); bulkhead rights, $145,900. Total, $487,200, to which should be added the upland necessary for the subway uses, approximately eighty feet in width through old warehouses of the company, the assessed value of the land and buildings necessary being approximately $65,000. This does not take into account any damages to warehouse property not actually acquired. In my opinion no damage could accrue as all necessary underpinning of foundations must be paid for by the City and assumed by its contractors, and if an outlet to the wharf property is required provision could be made for a driveway through the warehouses, giving the Dock Company the right to maintain its warehouses over the same, thus providing a covered way available to all wharf property similar to numerous driveways which now exist at various points. Without such driveways the company could not conduct its business successfully.

In my opinion the City should acquire the parcels, including Piers 9 and 10. together with the land under water and the bulkhead rights, in addition to eighty feet of the marginal wharf and a right of way of sufficient width through the warehouse property directly opposite the proposed new pier which should be built over the tunnel simultaneously with its construction. The Clark street property, if acquired, together with the Montague street and Joralemon street properties, should be leased to the New York Dock Company on the basis of 5.39 per cent. return on the assessed valuation provided the New York Dock Company agrees to build over the tunnels at the points named modern piers under plans to be jointly approved by the Public Service Commission and this Department. Or in the event that the Corporation Counsel so advises, all the properties acquired by the City through the Public Service Commission should be surrendered to the Sinking Fund Commission, reserving easements for the tunnels, the Sinking Fund Commisison in turn transferring jurisdiction of the properties to the Dock Department for dock purposes. Respectfully yours,

(Sgd.) R. A. C. SMITH, Commissioner of Docks. Discussion of the matter followed. The following resolution was then offered for adoption:

Resolved. That the Commissioners of the Sinking Fund hereby approve of and consent to the execution by the Commissioner of Docks of a lease to the New York Dock Company, a corporation organized under the laws of the State of New York and having its office at the corner of State and Whitehall Streets, Borough of Manhattan, City of New York, of the following described property:

Parcel A-Property owned by the City at the foot of Joralemon Street, Brooklyn, described as follows:

Bounded on the easterly side by the bulkhead line established by chapter 484, Laws of 1836, also by chapter 156 of Laws of 1848, and approved by the Secretary of War on March 4, 1890; on the southerly side by the southerly line of Joralemon Street produced or extended from said bulkhead line to the pierhead line established by chapter 776, Laws of 1900; on the westerly side by the pierhead line established by chapter 776, Laws of 1900; and on the northerly side by a line beginning at a point on the bulkhead line above mentioned distant northerly 103.7 feet measured along said bulkhead line from its intersection with the southerly side of Joralemon Street extended, which northerly boundary extends westerly from said bulkhead line making an angle of 85 degrees 50 minutes with said bulkhead line a distance of 467.5 feet till it intersects the pierhead line established by chapter 702, Laws of 1873; thence continuing and curving to the north and west by a circular arc of 4.466 feet radius, a distance of 186.2 feet along said circular arc till it intersects the pierhead line established by Chapter 776, Laws of 1900, at a point distant northerly 130.2 feet measured along said pierhead line from its intersection with the southerly line of Joralemon Street produced.

Excepting, however, and reserving therefrom unto the City of New York a permanent and perpetual right or rights, right or rights of way, casement or easements for the maintenance and operation of the Brooklyn-Manhattan Rapid Transit Railroad now constructed free of interference and right of interference, in, through, over and upon the land above described including the right to permanently and perpetually maintain and operate said rapid transit railroad and the appurtenances thereto and means of access, ingress or egress free of interference and right of interference within the subway or structure now constructed and provided in, through, over and upon the above described premises with the appurtenances thereto belonging including the right at all time or times to inspect repair, reconstruct and relocate within the limits of the above described premises, but not above a point three (3) feet above the present location of said rapid transit railroad, the said rapid transit railroad and appurtenances thereto and means of access, ingress and egress, and at all reasonable times and in a reasonable manner and to the extent reasonably necessary to enter upon use and occupy each and every part of the above described premises for such purposes or any of them or for purposes of complying with any of the obligations of the City.

Provided, however, that to the extent that the work of reconstructing, repairing or relocating the said subway or structure shall in any manner affect the use and occupation of the above described premises or any buildings, structures, or improvements located thereon, which shall have been erected as hereinafter provided, the City shall do such work with all reasonable expedition and in such manner as to cause as little interference as reasonably practicable with the conduct and continuance of the business of the owner or occupant of the above described premises and shall repair all injury done in such work to such premises or to any buildings, structures or improvements erected as herein provided, and the City will also reimburse the owner or occupant of said premises or of any building structures or improvements thereon erected as herein provided for the actual and necessary loss of use or any portion of said buildings, structures or improvements resulting from such work during the progress thereof.

Parcel B-Property now under condemnation by the City at and near the foot of Montague Street, Brooklyn, described as follows:

Beginning at a point in the westerly line of Furman Street, as laid down on the map or plan of the City of New York, distant twenty-six (26) feet southwardly from the corner formed by the intersection of the southerly line of Montague Street with the westerly line of Furman Street as said streets are laid down on the map or plan of the City of New York; and running thence northwardly along the westerly line of Furman Street twenty-six (26) feet to said corner formed by the intersection of the southerly line of Montague Street with the westerly line of Furman Street; running thence westwardly and along the southerly line of Montague Street two hundred and twenty-five (225) feet nine (9) inches, more or less, to meet a line drawn from the northerly line of Montague Street and at right angles therewith from a point therein distant two hundred and twenty-five (225) feet nine (9) inches westwardly from the westerly

line of Furman Street; running thence northwardly along said right angled line sixty (60) feet to the northerly line of Montague Street; running thence eastwardly along the northerly line of Montague Street two hundred and twenty-five (225) feet nine (9) inches to the corner formed by the intersection of the northerly line of Montague Street with the westerly line of Furman Street; running thence northwardly along the westerly line of Furman Street thirty (30) feet; running thence along the southerly line of the premises conveyed by Henry E. Pierrepont et al., as Executors, to Thomas A. McIntyre by deed dated January 23, 1895 and recorded in the Register's Office of King's County on January 29, 1895, in Liber 1, Section 1 of Conveyances, at Page 83, as stated in said deed north sixty-seven degrees thirty minutes (67 degrees 30 minutes) west two hundred and seventy-three (273) feet, running thence westwardly seven hundred and five (705) feet eight (8) inches to a point in the piernead line approved by the Secretary of War in 1897, and established by chapter 776 of the Laws of 1900 distant northwardly one hundred and forty (140) feet at right angles from the southerly line of lands now or formerly of Henry E. Pierrepont as extended westwardly; running thence southwardly along said pierhead line of 1897 one hundred and forty (140) feet seven (7) inches to said southerly line of said Fierrepont lands; and running thence eastwardly along said southerly line of said Pierrepont lands nine hundred and ninety-two (992) feet five (5) inches to the westerly line of Furman Street at the point or place of beginning.

Also all the right, title and interest which the City of New York may now have or which it may hereafter acquire under the amended memorandum in the said condemnation proceeding approved and adopted by the Commission on the 12th day of March, 1915, the title to which proceeding is given above or in any subsequent condemnation proceeding in and to the land lying between the northerly line of the premises last above described and the southerly line of the premises heretofore conveyed by Henry E. Pierrepont et al., to Thomas A. McIntyre by deed dated January 25, 1895, recorded in Liber 1, Section 1 of Conveyances at page 83 and the land lying between the pierhead line of 1897 and the said lines last above mentioned if extended on the same course westwardly to said pierhead line of 1897,

Excepting, however, and reserving from all of the above described premises unto the City a permanent and perpetual right or rights, rights of way ani easement or easements and the appurtenances thereto for the construction, maintenance and operation of the Whitehall Street-East River-Montague Street Rapid Transit Railroad now in course of construction, free of interference and right of interference in, through, over and upon the land above described including the right to equip and to permanently and perpetually maintain and operate said rapid transit railroad and the appurtenances thereto and means of access, ingress and egress free of interference and right of interference within the tubes or structure now being constructed or which may hereafter be constructed in, through over and upon the premises above described together with the appurtenances thereto belonging, including the right at all time or times to inspect, repair, re. construct and relocate within the limits of the above described premises but below the elevations herein given the said rapid transit railroad and appurtenances thereto and means of access, ingress, egress and at all reasonable times and in a reasonable manner to the extent reasonably necessary to enter upon, use and occupy each and every part of the above described premises for such purposes or any of them or for the purpose of complying with any of the obligations of the City.

Provided, however, that to the extent that the work of reconstructing, repair. ing or relocating the said subway or structure after the construction and equipment of the same shall have been completed shall in any manner affect the use and occupation of the above described premises or any buildings, structures or improvements located thereon which shall have been erected as hereinafter provided the City shall do such work with all reasonable expedition and in such manner as to cause as little interference as reasonably practicable with the conduct and continuance of the business of the owner or occupant of the premises above described and shall repair all injury done in the course of such work to such premises or any buildings, structures or improvements erected as herein provided and the City will also reimburse the owner or occupant of said premises or of any buildings, structures or improvements thereon erected as herein provided for the actual and necessary loss of use of any portion of said buildings, stuctures or improvements resulting from such work during the progress thereof.

« PreviousContinue »