"A consortium closed on the purchase of the development from the John D. and Catherine MacArthur Foundation, which had been the partner in the complex with the late Harry B. Helmsley. The price was $215 million..."
--The New York Times on December 28, 1997
Every year the Chicago-based "non-profit" and tax-exempt MacArthur Foundation board of directors commits itself to transferring $625,000 over a 5-year period to each individual "MacArthur Fellow" who is undemocratically nominated by secret nominators and recommended by secret selection committee members to receive an individual "genius grant."
Yet although the MacArthur Foundation--whose current assets exceed $6.4 billion--claims to be a "non-profit" organization, much of its "genius grant" money apparently was derived from the real estate industry profits it obtained as a result of owning the Fresh Meadows Development's rental apartment complex in Queens, in partnership with the now-deceased billionaire Harry Helmsley, until 1995.
Over 10,000 New York City tenants lived in the 3,287 rental units of the 140-building Fresh Meadows apartment complex that Billionaire John D. MacArthur and Helmsley bought in October 1972; and between 1972 and 1995 MacArthur or the MacArthur Foundation--that assumed control of an estimated $1 billion of John D. MacArthur's assets following his death in January 1978-- owned 40 percent of the Fresh Meadows Development, before the MacArthur Foundation increased its ownership to 100 percent between 1995 and 1997, by purchasing Helmsley's 60 percent stake. Then, by selling its 100 percent ownership stake to the Witkoff Group, the Insignia Financial Group and the Federal Realty Investment Trust in December 1997, the "non-profit" MacArthur Foundation was apparently able to obtain an additional $215 million to add to its total assets in the late 1990's.
After John D. MacArthur and Helmsley bought the real estate in October 1972, maintenance services declined, elevators became defective, air-conditioning fees and snow removal complaints increased and a tenants association was formed which organized rent strikes and filed lawsuits against the MacArthur-Helmsley partnership. In his 1989 book, The Ultra Rich: How Much Is Too Much?, Vance Packard noted that "New York realtor and billionaire Harry Helmsley called real estate attractive because `You don't have to do anything. You just have to sit. The values go up.'"
When the MacArthur "Genius Grant" Foundation jointly-owned the Fresh Meadows apartment complex with Harry Helmsley, its Fresh Meadows real estate managers apparently historically discriminated against African-American applicants. As Palace Coup: The Inside Story of Harry and Leona Helmsley by Michael Moss recalled in 1989:
"...One Fresh Meadows case in particular stood out. It was brought by the NAACP, and the issue was racial discrimination...The suit, filed in 1983, had some biting affidavits...Valerie Stroud, a police officer, testified...`It was my understanding that...Fresh Meadows did not rent to Black people.'
"Helmsley and the NAACP avoided a costly trial by agreeing to a settlement that both prohibited Helmsley from refusing to rent on the basis of race and required him to take a number of steps to encourage minorities to apply. A year later the NAACP was back in court, accusing Helmsley of violating the agreement by trying to convert the apartments into co-ops. Helmsley again settled the matter...The Open Housing Center, a non-profit citizens group monitoring Fresh Meadows, estimated that the number of Black families rose from less than one percent..."
Posts
No comments:
Post a Comment