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Alleged gas siphoning only further fuels turmoil at another E.V. building

Stage Restaurant, closed since March 28, is accused of gas siphoning and is facing eviction.  Photo by Tequila Minsky
Stage Restaurant, closed since March 28, is accused of gas siphoning and is facing eviction. Photo by Tequila Minsky

BY TINA BENITEZ-EVES  |  Nearly three weeks after the deadly explosion and fire at 121 Second Ave., which leveled three buildings and killed two men, tenants across the street from the site at 128 Second Ave. are still without heat and hot water.

On March 30, the city issued a full stop-work order for work in the building’s basement — meaning the tenants may be left without heat and hot water for an extended period of time.

One of these tenants is Stage Restaurant, a counter deli that has been on Second Ave. for 35 years. Not only has the restaurant been closed for more than two weeks, but Icon Realty Management, the building’s owner, is accusing the Stage’s owner, Roman Diakun, of tampering with the building’s gas line, and issued him an eviction notice on April 13.

Stage must vacate the space by April 30, according to Joe Goldsmith, a lawyer for Icon.

Just days after the explosion, Con Edison shut off the gas line to 128 Second Ave. on March 29, as a safety precaution after a tenant reported smelling gas. On March 30, a city inspector visited the building and discovered a gas pipe and fittings without a permit and issued a stop-work order for work in the basement.

For its part, Icon says that it never sent anyone to work on the gas line and believes that a Stage “employee or agent” was tampering with it.

“We’ve uncovered a device installed without the owner’s knowledge or consent siphoning gas from Con Edison directly to the Stage Restaurant and bypassing Stage Restaurant’s meter,” Goldsmith said. “We’ve also ascertained that the gas pipe connected to Stage Restaurant’s meter, and through which gas should be provided to Stage Restaurant, is not actually connected to anything.”

Icon took action against Stage for what it called “unauthorized and dangerous alterations,” according to Goldsmith.

The Villager contacted Diakun’s son Andrew Diakun, who was unable to comment because they are in discussions with a lawyer.

Closed since March 28, Stage Restaurant was already struggling to reopen in the disaster’s aftermath, and a petition was recently launched (https://www.change.org/p/stage-restaurant-to-reopen) by Andrew Diakun to help reopen it.

The recent stop-work order and eviction notice against the restaurant follow more than a year of court battles involving several other tenants of No. 128 and the landlord after Icon purchased the building in October 2013.

Tenants claimed that after Icon purchased it, the building’s condition has declined drastically. Fire-escape steps and railings are broken, an extra front door for security at the building’s entrance swings open and there’s excessive construction dust, they say. Fire alarms and windows are also broken throughout the building, according to several tenants who spoke to The Villager.

Attorney Goldsmith, however, said the landlord is working on all the building repairs, but that the main concern right now is getting the gas working again.

“Step one is to the get the gas turned on,” he said. “Unfortunately, with a building of this age, whenever the gas gets turned off, Con Edison has to come for a pressure test before they turn it back on,” he added. “These type of pipes, because of the age of the system, are not capable of holding the pressure required under current testing. Most of the pipes will have to be replaced.”

Meanwhile, John Serdula, who heads the building’s tenants association, charged that Icon is trying to clear out one half of the building, whose tenants are still rent-controlled or rent-stabilized, in order to renovate and rent out apartments at a higher market value.

“We always had heat and hot water,” Serdula said. “Once Icon took over, we didn’t have heat for a month and then longer. They’re trying to drive people out.”

Regarding the recent heat and hot water shutoff, Goldsmith said the landlord sent notice to tenants about temporary arrangements — including a boiler, hot plates and reimbursements of $200 per day and hotel-room stays — until all the services restored. However, Serdula said that these notices were sent only to tenants of the newly renovated apartments that rent for upward of $4,000. Hot plates for cooking were delivered to tenants on April 5.

“They’re running a heating system that takes forever to heat up, trickling hot water,” said another tenant, Jonathan Jones. “Living here is such a negative feeling,” said Jones, founder of 2001Films, an East Village production company.

Jones, who has lived in the building with his wife since 2009, has also been in and out of court with Icon for more than a year, and said he may have to move out by the end of this month. He claims that Icon has been trying to overturn his unit’s rent-stabilization status, saying that he owes more than $50,000 in back rent. Jones said he has always paid his rent on time and has proof, and that Icon’s claims stem from the fact that they did not have full access to the previous landlord’s rental records.

Tenants were further concerned when, on April 3, Icon suddenly posted fire guards from Epic Security on each of the building’s six floors.

“The guys were walking around standing by our door, saying really loudly, ‘We smell smoke. We smell smoke,’ ” Jones said. “First of all, we don’t know why they’re here. Maybe we should call 911 if there’s smoke.”

Serdula spoke with other tenants, who were hearing the same thing. He called 911 and request for police and firefighters to respond, and they arrived moments later. There was no smoke or fire.

Goldsmith said Icon hired the fire guards to help maintain some order in case of an emergency after D.O.B. notified them that there were some issues with the building’s fire escapes, and that they would want fire guards to be posted at the building until things were repaired.

Goldsmith said most of the tenants are exaggerating conditions.

“The reason that they’re being so vocal is retaliation against the landlord for bringing cases against them,” he said.

“They’re total dirtbags,” countered Roman Kaniuga, who has lived in the building nearly 20 years. There is a broken step on the section of the fire escape outside his window.

Tenants and Icon went to court on Tues., April 14.