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Eminent Domain in Coney Island? Fuhgeddaboutit!

Posted in historic preservation, Real Estate, Redevelopment, tagged Coney Island History Project, Coney Island USA, Demolition by Neglect, Dick Zigun, Eminent Domain, Horace Bullard, Shore Theater on July 31, 2012| 2 Comments »

Vacant and for Sale: The Shore Theater, on left, viewed from the Thunderbolt lot, a 3-acre development site. July 30, 2012. Photo © Tricia Vita/me-myself-i via flickr

The above photo taken yesterday shows Coney Island’s long-vacant Shore Theater, on the left, viewed from the three-acre development site where the Thunderbolt roller coaster, illegally demolished by the City in 2000, once stood. Both are owned by Horace Bullard and are among two dozen privately owned properties advertised for sale or lease on a Coney Island Development Corp. map of retail opportunities in 2011 and 2012. The Shore Theater has an asking price of $13 million and the Thunderbolt parcel says “Submit all Offers.” Nobody snapped ’em up yet. If you think about it, buyers are few in Coney’s over-priced amusement area. There’s the City and Thor Equities. Plus Coney Island USA, which bought the building next door to their sideshow headquarters.

Coney Island USA’s artistic director Dick Zigun and Brooklyn Daily deserve credit for calling attention to the plight of the Shore Theater, which has been shuttered for more than 35 years. In December 2010, the City landmarked the exterior and presumably would like to see the building restored. But in our opinion, Zigun saying that the City should seize the Shore from its owner and the Brooklyn Daily doing a reader poll on the E.D. issue is grandstanding to make a point.

The Shore Theater, formerly the Loew's Coney Island, is up for City landmark designation. Photo © Tricia Vita/me-myself-i via flickr

The Shore Theater, formerly the Loews Coney Island. Photo © Tricia Vita/me-myself-i via flickr

The Bloomberg administration was right to back off from the idea of taking land by condemnation from Thor Equities and other Coney Island property owners during the rezoning hearings in 2009. Under sharp questioning by City Council land use committee members, the EDC’s Seth Pinsky was forced to admit, “I’m not saying we will use eminent domain, but in fairness to your question, I’m not saying we won’t.” In order to get Council members to agree to vote for the zoning, the EDC instead had to negotiate an agreement to buy property from Thor Equities. At the same time, Deno’s Wonder Wheel Park and other property owners were no longer threatened by E.D.

As for the Shore, the City should either come up with the money to buy Bullard’s property or find a buyer. Community Board 13’s land use committee voted yes on the Coney Island rezoning, but one of the non-binding stipulations was that the City buy the theater and make it into a community arts center. What happened to that idea? Ideally BP Marty Markowitz could use the $64 million set aside for the Seaside Park amphitheater to purchase and renovate the Shore. Or somebody can start a “Chip in” to buy the Shore and Mayor Bloomberg can make it one of his charitable projects. The City should buy the Thunderbolt parcel too and use it to right Mayor Giuliani’s wrong and rebuild either the Thunderbolt or the Tornado.

As far as we know, there’s no precedent for the Landmarks Preservation Commission taking property by Eminent Domain. There is however the precedent of a Demolition by Neglect lawsuit which, if successful, requires the owner to fix up the property or sell it. As ATZ reported at the time of the Shore’s landmarking in December 2010:

If the building is landmarked, Demolition by Neglect laws could come into play. The New York City demolition by neglect ordinance states, “every [owner] of a landmark site or historic district shall keep in good repair (1) all of the exterior portions of such improvement and (2) all interior portions thereof which, if not so maintained, may cause or tend to cause the exterior portions of such improvement to deteriorate, decay or become damaged or otherwise to fell into a state of disrepair.” NEW YORK, N.Y., CODE § 25-311 (2001).

Last year [2009], in a precedent setting lawsuit, the City was awarded $1.1 million in civil penalties and gave the owners of the landmarked Windermere apartments a choice of fixing the property or selling it. “This settlement sends a message to owners of landmarked buildings that they must keep them in a state of good repair,” said Robert B. Tierney, chairman of the Landmarks Preservation Commission in a New York City Law Department press release about the case. “Buildings like the Windermere are an indispensable part of New York City’s architectural heritage and must be preserved for future generations.”

A rare glimpse of the ornate interior of the Shore Theater, photographed by historian Charles Denson, is on view at the Coney Island History Project exhibit center though September 3rd.

UPDATE August 4, 2012

Charles Denson’s beautiful photos of the Shore Theater interior made into a heartbreaking video. Watch it here.

Coney Island Theatre Building. Photo © katherine of chicago via flickr

Thor Equities Joins Facebook, Shows Coney Island’s Surf Ave Minus Eldorado

Posted in Real Estate, Redevelopment, Uncategorized, tagged Eldorado Bumper Cars, Facebook, Henderson Building, social media, Surf Avenue, Thor Equities on July 23, 2012| 4 Comments »

Rendering for 1218 Surf Ave, currently the Eldorado Bumper Cars, shows a new arcade and burger restaurant. Photo via Thor Equities Facebook Page

Long absent from social media channels, last week Thor Equities joined Facebook and Twitter. “Our FB page is up & running. We have begun featuring exclusive photos & descriptions of our properties. Take a look,” they tweeted. We did, and found that Thor “liked” Times Square, Central Park, a raft of real estate pages, and one that surprised us– Bikram Yoga — but has yet to “like” Coney Island or anybody in Brooklyn. Snub? Priorities? They’ll probably get around to it sooner or later.

Among the Brooklyn properties featured in Thor’s Facebook photo albums are two in Coney Island: The vacant new building at Surf and Stillwell Avenues and the Eldorado Building at 1218 Surf Avenue. Eldorado owners Sandy and Sheila Fitlin sold the building to Thor in March and the bumper cars and arcade are expected to close at the end of the season after a 40-year run.

Thor Equities bought the Eldorado Building at 1218 Surf Avenue in March 2012. Its neighbor is Denny’s Ice Cream, owned by Coney Island USA. Photo © Tricia Vita/me-myself-i via flickr

When the Eldorado closes the Fitlins plan to take down the marquee and other signs, which were not part of the sale, they told ATZ. They hope to place the signage with a museum or collector. Knowing all of this did not lessen the shock and dismay of seeing Thor’s rendering for 1218 Surf with a “Joe’s Burgers” and generic arcade replacing the fabulous Eldorado Skooters facade and “Bump Your Ass Off” signage. If this is news to you, better run right over to the disco palace of bumper cars and bump, bump, bump for one last time this summer.

Along with the expected closure of McCullough’s Kiddie Park on the Bowery, whose lease with Thor ends this season, the closing of the Eldorado marks a critical point in the exit of independent amusement operators with a long history in Coney Island and the beginning of Thor’s “CONEY ISLAND – The RETAIL RIDE of a LIFETIME.” It started in 2007, with Thor’s eviction of Norman Kaufman’s Batting Range and Go Kart City and the Zipper and Spider rides documented in Amy Nicholson’s upcoming film “Zipper.” It continued with the loss of games in the shuttered Grashorn Building and the demolished Henderson Building. The caption for the Eldorado property calls it “an unbeatable retail opportunity.”

On Thor’s Facebook page, the captions on the two Coney properties got reversed and what’s more the new building at Surf and Stillwell is ~~misidentified~~ idiotically referred to as the “Henderson Building.” The century-old music hall was demolished by Thor in 2010 despite preservationists’ best efforts to save it. The doomed Henderson along with the old Shore Hotel were on a parcel rezoned by the City in July 2009 for a high rise hotel. “Every one of these buildings is just horrible, rundown relics with nothing exciting about them. I hate to say it, but the great buildings of Coney Island disappeared 80 years ago,” Sitt told NY1 before demolishing the buildings.

Ironically, Sitt’s first new construction after years of real estate speculation in Coney Island is a suburban looking one-story structure that looks like a car dealership. We certainly hope it’s a typo that Thor is calling this vacant, boarded-up new building the Henderson Building! Why not call it the Thor Building? The question is what are Joe Sitt’s plans for Coney Island’s newest building at Surf and Stillwell, and Coney’s oldest building– the Grashorn — at Surf and Jones Walk? ATZ tweeted that question to @ThorEquities. Awaiting a reply.

Rendering of Thor Equities Building at Surf and Stillwell, Coney Island via Thor Equities Facebook

Thor Equities Paid $4.5M for Coney Island’s Eldorado

Posted in Real Estate, Redevelopment, Uncategorized, tagged Coney Island, Coney Island USA, Denny's Ice Cream, Dick Zigun, Eldorado, Surf Avenue, Thor Equities on April 1, 2012| 2 Comments »

Denny's Ice Cream & Eldorado Bumper Cars at Night. Easter Sunday, April 24, 2011. Photo © Tricia Vita/me-myself-i via flickr

Thor Equities paid $4.5 million for Coney Island’s Eldorado Building according to the deed recorded on Thursday for the March sale of the property. The recorded buyer is a newly formed foreign limited liability company with Thor Equities listed as the contact. The multi-parcel transaction included the 4,500-square-foot building at 1218 Surf Avenue housing the Bumper Cars and the 6,123-square-foot building at 1215 Bowery where the arcade is located, according to Property Shark. ATZ first reported the sale in “60 Years of Family History in Coney Island End with Sale of Eldorado” (ATZ, March 20, 2012).

The price per square foot was $423, which is in line with the most recent comparable sale. Last November, the nonprofit arts organization Coney Island USA bought Denny’s Ice Cream for $1.3 million. The price per square foot was $465.

Neighbors for more than 30 years, the owners of the Eldorado and Denny’s Ice Cream were among the few remaining longtime property owners with businesses in Coney’s amusement zone. The business owners were at the age of retirement and lacking a next generation to step in decided to sell. The Eldorado Disco Palace of Bumper Cars opened in 1973, but the building was purchased by the Fitlin and Buxbaum families in 1971. Denny’s Dennis Corines has owned and operated the ice cream shop, where specialties include pistachio-banana soft serve, since the late ’70s.

Both businesses are expected to continue for at least this season. As ATZ reported last week, Gordon Lee, who operated the Eldorado Bumper Cars and Arcade for the Fitlins last year, has plans to reopen the business in the coming days for one last year.

On Friday, we watched workers getting Denny’s ready for Coney Island’s Opening Day. CIUSA’s Dick Zigun tweeted, “Just ate the very 1st ice cream of the year at DENNY’S: a big hot fudge Sunday! There goes the diet…”

Zigun tells ATZ: “Since we own an ice cream parlor and have no money to renovate, Denny’s might or might not continue next year. Even once we renovate the building will maintain a 500-square-foot storefront taking up most of Surf Avenue frontage that will always serve light food to street plus lobby inside.”

Denny's Ice Cream Getting ready for Coney Island's Opening Day. Now owned by Coney Island USA. March 30, 2012. Photo © Tricia Vita/me-myself-i via flickr

“Some day we can transfer air rights from the landmark Childs Building, match the two-story front of Childs then do a setback with an additional five to seven story tower on top of the base,” Zigun noted. The renderings that he showed last year at a Coney Island presentation at the AIA included a whimsical homage to the Elephant Hotel.

While the rezoning of Coney Island offers property owners the opportunity to increase the FAR –floor to area ratio–of their properties, Joe Sitt of Thor Equities got a big bonus: the controversial rezoning for “hotels” of up to 27 stories on the south side of Surf. One of these parcels is the corner of Surf and Stillwell, where Thor demolished the century-old Henderson Music Hall to build a one-story building that remains vacant. Sitt is expected to tear down the Eldorado building, which dates back to 1928, and the Coney Island Rumor Mill is saying Thor will try to acquire other property on the Bowery.

Nearly three years since the Coney Island Rezoning was approved by the City Council, we’ve seen a few demolitions by Thor but have yet to see any new construction in Coney East that wouldn’t also have been possible before the rezoning. The marquee of the Eldorado and Denny’s signage enliven Surf Avenue and will forever remain in our memories thanks to many people’s photos. Their old school authenticity will be missed in the new Coney Island.

UPDATE April 12, 2012:

Good news! Gordon Lee of Coney’s Eldorado Bumper Cars phoned to say he’s operating the ride today & open for business! The arcade will also open this weekend for the season. Hours at the Eldorado are “12 noon till closing.”