29-Jan-21 – The combatants in a battle between unit owners and Newberry Plaza Condominium Association have been sent to their corners, with the last round going to the condo board and its president. But owners at the Gold Coast mixed-use high-rise have not thrown in the towel.

At a special, virtual meeting of NPCA on January 13, a proposed redevelopment plan was “overwhelmingly” approved by unit owners representing 73.7 percent of unit ownership, according to an email from the condo association the next day.

The residents who appear to have lost this last round call themselves the Newberry Plaza Community Coalition (NPCC). They oppose a pending deal to transfer part of the building’s common areas to an outside interest with plans to redevelop it into retail and commercial space.

NPCC says that based on working drawings, unit owners will lose 10,145 square feet of real estate, and their condo association will receive no cash payment for the property that would be transferred through a 99-year lease. Assuming a value of $1,000 per square foot, NPCC says more than $10 million in real estate value is being taken from them.

(Above) Proposed design (left) that would add three floors of commercial space to the east side of Newberry Plaza. Current design at right.

One resident pointed out that the coalition does not represent a large portion of unit owners, nor does the condo association own the space in question.

“The condo association does not own the entire building or the garage, so we have to negotiate with the owners of the rest of the building as our building is governed by both our condominium documents as well as reciprocal easement agreements,” said Samuel Williamson, a Newberry Plaza resident for 12 years.

He disputes claims that the condo association is financially distressed.

“We are in good shape financially, the building is well-maintained, [and the] board works hard and takes their fiduciary responsibility seriously,” said Williamson.

Vote count disputed, majority basis disputed

Immediately after unit owners seemingly approved the redevelopment on January 13, the condo board met again to vote – seven in favor, four opposed – and direct officers of the association to sign all documents necessary to implement the plan.

56 people attended the second meeting, but the board did not allow questions or comments from non-board-members.

NPCC now questions the original vote of unit owners. An August 14, 2020, letter from the coalition’s attorney, Caren Lederer (left), to the condo association says that because proposed changes are so extensive, approval by no less than 75 percent of owners is needed to allow the board to move forward. She says the condominium declaration may even require consent of mortgage lenders.

In an email three days earlier to the condo association, NPCC warned the declaration and bylaws would not allow NPCA president Christian Pezzuto (right) to have full control over the deal, even if unit owners approved the redevelopment.

“If this is a vote on the proposed redevelopment project, they must have 75 percent approval for the project since it is a real estate transaction being conducted by the Board on behalf of all owners,” read the January 11 email from the coalition of owners.

NPCC has since requested independent verification of the vote. But even if the vote count is accurate, it still is not enough votes, says the coalition.

“What we find puzzling is they would willingly admit they don’t have the 75 percent required – and still vote as a board to approve the project,” said unit owner Michelle Meyer. “Even with some board members explicitly stating they are in violation of the declaration and bylaws that they must have 75 percent [of] owners’ votes to move forward. We are guessing they think we just won’t do anything about it.”

Meyer says she was called a derogatory name during the January 13 Zoom meeting. Williamson says that while there have been irrelevant and untrue statements, overall he thinks the debate has been mostly open and straightforward.

“Most residents on both sides of the issue are participating in a fair discussion of the merits of the project,” he said.

But coalition members say the condo association has stifled debate by only hosting virtual meetings that allow the host to mute attendees. They say it discourages debate and the fluid, back and forth discussion typical of public meetings.