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Sandro Rosell
FC Barcelona President
Friday, June 23, 2017

Allure Group in Rivington House Matter

Mayor Bill de Blasio admitted last Thursday that the city’s lawyers “cannot find an actual pathway” to attain restitution from Allure Group for the Rivington House fiasco. In April, the Mayor had vowed to sue Allure Group for the sale of the Manhattan nursing home to a luxury condo developer. The infamous 2015 transaction meant a $72 million profit for Allure Corp, and enraged the Lower East side, as per the Real Deal. The Mayor announced, “I support anything that would get us further restitution for what happened. I made very clear my anger at the way the private-sector firm handled things.” However, “So far, our law department cannot find an actual pathway.”

The mayor has repeatedly stated that he had no knowledge at the time of the deal, and that Allure did not specify to the city its intentions to sell the building to a developer. The Department of Citywide Administrative Services approved the removal of the “Not-for-Profit Residential Health Care Facility” restriction on Rivington House in exchange for $16.15 million. The communal property was then sold to Slate Property Group with plans to build about 100 luxury apartments. 

A recent report from the Department of Investigations revealed that Allure representatives did notify the city in March 2015 that if the deed was not lifted, it would consider a conversion of the property to luxury apartments. Allure maintains that it did nothing wrong and abided the law in every step of the process. Comptroller Scott Stringer, who also alleged Allure of misleading City Hall, placed most of the blame on Mayor de Blasio’s administration for mishandling the information. Throughout the several investigations into the Rivington House “mistake”, no criminal wrong doing was found. Last month, the NYC Council passed a law requiring mayors to personally approve all modifications to or removals of city-imposed deed restrictions.

By Hadassa Kalatizadeh