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The New York State Public Service Commission issued the following order:
CASE 15-C-0495 - Petition of Verizon New York Inc. for Approval to Sell the Twenty-First Floor Unit of a Condominium Located at 240 East 38th Street, New York, New York.
ORDER APPROVING TRANSFER
(Issued and Effective October 16, 2015)
BY THE COMMISSION:
INTRODUCTION
In 2010, Verizon New York Inc. (Verizon) sold approximately 52.5% of the Condominium located at 240 East 38th Street, New York, New York (the Property) to New York University (NYU or the Purchaser).1 Included in the portion of the Property retained by Verizon at that time was the Twenty-First floor Unit (the Unit). By petition dated August 18, 2015, Verizon seeks permission, pursuant to Public Service Law (PSL) section99, to sell the Unit to NYU for net proceeds of approximately $8 million and an intrastate gain of approximately $5 million. Verizon requests Commission authority to retain the intrastate sale proceeds for general corporate purposes, including maintenance of service quality and network reliability as well as reduction of costs.
Section 99 of the PSL requires that in order to approve the transaction, the Commission must find that it is in the public interest. In this Order, we approve the transfer because the transaction will not result in any adverse effects on the Company's telecommunications operations at the Property; the purchase price is reasonable; the sale will improve the overall efficiency of Verizon's operations; and the sale will reduce its operating costs. The Company states that it intends, among other things, to use the proceeds for maintaining service quality and network reliability. Information provided by Verizon on its financial condition supports its assertion that it is experiencing a revenue shortfall due to ongoing access line losses. The data also suggests that the amount of its capital investment in New York exceeds the amount of funds it receives from its New York operations and that the Company is not exporting cash from its New York operations to its corporate parents. We therefore will authorize Verizon to retain the intrastate gain on the sale and expect that Verizon will apply the net proceeds from the sale to improve its service quality and network reliability.
PETITION
Description of Transfer
PETITION
By a Declaration of Condominium dated...