The H Mart mystery has been solved, but not in a good way. Turns out The Post uncovered an explanation: H Mart has claimed in two lawsuits filed in the past month — one against four residents of the nine-unit coop, and against the coop’s lawyer — that the condo has obstructed H Mart’s plans at every turn since it bought the unit in 2022.
(You can read the complaint against the board members here.)
The story goes like this: Six months after H Mart bought the commercial unit in June 2022, the board passed a “secret resolution” that outlined a 19-point set of rules that would serve to restrict H Mart’s operations — including limiting store hours, requiring budget oversight on construction, restricting use of the sidewalk in front of the store, requiring rights of refusal on the sale of the unit, etc.
“H Mart never would have purchased Unit 1 under this condition,” the company says in the lawsuit against the lawyer. “This clause purports to give the Board the ability to declare non-compliance with any law or regulation, even if the authorities do not. The Board is neither qualified to do so, nor can it be trusted to do so correctly or fairly.”
The saga rolls out from there — delaying the construction as we have all witnessed for years. The condo board refused to approve H Mart’s plans for more than a year, until April 2023, the complaint claims, then required that the business move the HVAC system on the roof, a request that cost tens of thousands in engineering plans (75 pages worth) and delayed progress until October 2024. Then the board pushed things off till March 2025, but still did not approve plans. All along, H Mart had been working on the interior, and, they claim, were 90 percent finished by then.
So basically, it’s a huge mess. But what I don’t get: why doesn’t HMart just open? If the “secret resolution” does not hold up legally, since it was passed without all condo owners present therefore violating the condo’s own bylaws, what’s stopping them?
For its part, the condo board members denied the allegations point by point, in its answer to the complaint filed on December 5. And H Mart in turn is suing for damages.
“H Mart has been unable to complete its alterations and as a result has been losing millions of dollars in revenue caused by the various breaches and bad faith conduct alleged above,” the complaint maintains. “H Mart’s past and ongoing damages include, but are not limited to, compensatory damages, actual damages, consequential damages (lost profits), and incidental damages (various costs imposed upon H Mart as a result of these breaches, including attorney’s fees).”
NIMBYism per usual
Meanwhile the residents probably frequent and are happy there are other H-marts at the foot of other peoples residential buildings. Sad trend by the privileged.
Post to Board names and emails so we in Tribeca can email them
Read the caption of the linked legal papers
It is hard to fathom why a retail operator would want to “marry” one of these capricious condo boards in a small building by buying the retail unit. At least if you merely rent the unit, you can sue and stop paying rent and walk away without capital tied up in owning the store or a mortgage on the property.
^^Exactly^^
Not a lawyer but the only thing that seems dicey is that the commercial condo unit owner wasn’t invited to the voting meeting. But I suspect his percent of common interest isn’t large enough that he could have changed the outcome. I can definitely understand why residents don’t want food service facilities in the building for fear of vermin and rodents. My own building has deed restrictions in the commercial unit to prevent food service.