Things Heat Up Between Co-op City and Management Company

Nov. 25, 2014 — Late last month, we told you about Co-op City's plans to replace Marion Scott Real Estate, the managing agent that oversees all operations at the Mitchell-Lama complex in Baychester. Now the New York Daily News has reported that during a "fiery public meeting" last week the RiverBay board of directors, which controls the 50,000-resident complex, has officially taken over "day-to-day operations." According to the report, the board expects to replace Marion Scott by early next year and is currently considering bids from eight competing companies. The board is making serious allegations against the management company and has sent a letter to the state Division of Housing and Community Renewal, the agency in charge of affordable housing. It's also calling for a state investigation of its charges against Marion Scott. But severing ties completely may be a lot more complicated than expected thanks to the terms of RiverBay's financing deal with the government and Wells Fargo Bank, the report said.