Small shopkeeper takes on Sony USA

Real Estate Weekly, Feb 10, 1993 by Therese Fitzgerald

Gerry Greengrass is taking on a giant.

Greengrass is the owner of "Made from Scratch," two 195-square-foot kiosks that offer sandwiches, cookies and muffins in the pedestrian plaza of 550 Madison Avenue, the former AT&T Building that is now net leased to Sony USA.

According to the proprietor, Sony USA will violate her 15-year lease by blocking access to her shops as the company goes about closing in the open air public plaza and creating an indoor arcade with retail space.

While Sony has made offers to buy out her lease, Greengrass has refused. She went to court and filed an injunction to stop the electronics giant's plans to build the enclosure. And while the injunction has been denied, her attorneys are appealing.

She also charges Sony has harassed her and made threats to close down her shop.

"For us this has never been an issue of money," said Jonathan Greengrass, son of Gerry Greengrass.

"It's like a David versus Goliath type battle," he said.

Sony USA, according to a spokesperson, has a somewhat different picture of the situation.

Bob Zito, vice president, Sony USA, says they were told by their brokers that at the time of their negotiations with AT&T Greengrass was looking to sell her food business for roughly $250,000. He says they offered her that amount for her lease and, through her attorney at Fishbein Badillo Wagner Itzler, she countered with '$2.1 million non-negotiable.' Sony declined.

Since then, said Zito, they have welcomed Greengrass to stay, and have made her shop as 'accessible as possible," and, he said, there has not been any harassment.

"We have not made any threats to kick her out or knock her down, a said Zito.

The indoor arcade, Zito said, has been approved by the New York City Planning Commission. The space, he said, was found by many to be dark and cold, and the renovation will combat these problems. It will remain public space, he said.

"The space was never really used as public space was meant to be," he said.

Sony, in addition, Zito says, has offered to give Greengrass 125 percent of her net for any given period in the last three years that equals the length of the renovation.

Greengrass' attorney, Rick Fishbein, says Greengrass was not considering selling her shop at the time of Sony's negotiation nor is she contemplating such now. He says what he told Sony was the shop is not for sale for $250,000 nor is it for sale for $2.1 million.

"I said you can't buy it for $2.1 million,' said Fishbein." ... she's not negotiating."

And as far as the offer to compensate profits, Fishbein said, Sony has been ordered by a judge to pay the difference between her best profits and current profits for the period of the renovation.

But, Greengrass' son said they will continue to fight Sony's construction of the arcade, which, he said, was approved by the city in a "middle of the night" in a "behind the back" way.

"I have 11 years left on a very profitable business and I'd like to stay in this and make money," he said.