ISLAMABAD: The New York City Government (NYCG) has made a three-year rental offer for the Pakistan-owned Roosevelt Hotel, expecting around $18 million in net cash.
The Economic Coordination Committee (ECC) of the Cabinet on Friday approved the offer in principle and constituted a four-member committee to negotiate the agreement with NYCG and the hotel’s worker union.
The Aviation Division and Pakistan International Airline-Investment Ltd (PIA-IL) were developing a business plan for reopening Manhattan’s prime property through renovation and severance cost with the hotel’s worker union, according to government directives, when the New York City offered to use the building’s 1,025 rooms for immigrants for three years at a rate of $200 per day for 36 months.
The offer included a minimum of 18-month minimum contract length, a guaranteed 14-month duration, and a four-month termination notice period. The agreement will go into effect on May 15 and calls for a $200 first-year rent, $205 second-year rent, and $210 third-year rent. Taxes and other fees will be paid for by New York City, which will also pay $1.74 million in rent on the first of every month.
PIA-IL has to hand over about 500 rooms to New York City immediately i.e. on the commencement of the contract on May 15, followed by 400 more rooms within 30 days and the remaining 125 rooms later. This required $1.145m for re-opening works and was already available with PIA-IL as a government grant.
