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The Starbucks Deal

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︎The Final Vote


February 3rd, 2020

The Board of Trustees approved the Starbucks deal at their meeting on February 3rd, despite outcry from over a dozen people who rallied against the vote. 

Students mobilized in the month of January to raise awareness of the problematic lease that CUNY is negotiating with the corporate coffee giant. Most disturbing is the fact Starbucks will not pay any rent for one third of the property, and is also not paying rent for almost 2 years, according to the contract. A group of us passed out hundreds of flyers to encourage the Hunter community to take a strong stand against the privatization of our campus. 

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︎ File
︎Click here to view a PDF of this document.

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︎The Only Public Hearing


January 27th, 2020

The Board of Trustees scheduled the only opportunity to give input about the Starbucks deal on the first day of classes, at Lehman College in the Bronx. Despite these deterrents, over a dozen people showed up with signs to testify against the lease with Starbucks. 

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︎ Interrupting the Board of Trustees


January 13th, 2020

Students protested the Board of Trustees meeting where the Committee of Facilities Planning and Management was hoping to quietly pass the Starbucks deal. Instead, we interrupted the meeting to raise questions and concerns about the contract. The trustees kicked us out of the room, ignoring our demands for transparency and student input. The only ‘no’ vote was from the student delegate on the committee, who agreed with our analysis that this deal is bad for students. This is the first vote in a two-step process to confirm the Starbucks deal. The next step is a public hearing, following a final vote in February.

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︎ File
︎Click here to read our official letter to the Board of Trustees.

Here are the facts:

    1. The Starbucks will only seat 52 people. No priority is being given to seat Hunter students, faculty and staff. 
    2. This is a 10 year lease with options to renew for a total of 20 years. 
    3. Starbucks is not paying rent for 20 months (8 months because of construction, then 12 months of ‘rent abatement’ divided across 2.5 years)
    4. For the first 5 years, this deal contributes $411,000 in revenue per year, which is less than the president’s yearly pay. 
    5. Hunter is not charging Starbucks rent for 1,000 sq. ft. of the property. Meaning, Starbucks will be using the downstairs basement level of our campus for free. 

Our main concerns are:

    1. Corporatization of a public university is wrong.
    2. Students started an art gallery in the space in the Spring 2019 semester, then got kicked out by administration.
    3. Students have been calling for transparency since May 2019, and have not received it.
    4. Demands for student input in this deal have been ignored.
    5. Students want more space on campus dedicated exclusively for the Hunter community. 
    6. Providing financial incentives to bring a major corporation on campus is unacceptable when our campus is overcrowded and students could put this space to better use. 

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We have two chances to stop the Starbucks deal, and we need help mobilizing.

January 27th is the public hearing to testify against Starbucks.
February 3rd is the final vote—we will be protesting this meeting and we consider this an emergency action. 


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︎Important Updates! 


Spring 2020 After a year of demanding transparency surrounding the West Building lobby at Hunter College, student activists have found answers to some pressing questions.
The CUNY Board of Trustees (BOT) has finally released information about the Starbucks deal on their ︎website. 

Summary of Recent Discoveries 
Source: ︎Board Committee on Facilities Planning and Management Agenda for January 13, 2020

  • How long is the lease with Starbucks?
The proposed lease is 10 years and 8 months long. The first 8 months will be dedicated to constructing the Starbucks. Following this 10 year contract, there are two 5-year options to renew the lease. Meaning, this is potentially a 20 year long commitment.

If Starbucks would like to break this contract, the company can pay $180,000 to do so after the first 5 years.


  • How much money is Hunter making from this deal?
Before discussing the ways our university will profit, it is important to mention that CUNY is first providing a major financial incentive to Starbucks. Under this deal, Starbucks will not pay rent for almost 2 years. This includes 8 months of construction and a 1 year ‘rent abatement’ period. This discount is being spread out across a 30 month period.

Further, it seems like Starbucks is being given 1,000 sq. ft. of our campus for free. According to the BOT, the lease being negotiated is $411,390 per year for the first 5 years, at $210 per square foot. Starbucks will be occupying 1,959 square feet on the ground floor and 1,000 square feet at the basement level, totaling 2,959 sq. ft.



411,390 / 210  = 1,959
So what about the remaining 1,000 sq. ft.?

After doing some simple math, it looks like Starbucks is not paying rent at all for the basement level of this property. At the Committee of Facilities Planning and Management meeting on January 13th, the trustees declined to comment on this issue when the concern was raised that 1,000 sq. ft. are unaccounted for.

In the first 5 years of this contract, CUNY will make approximately $1.6 million dollars. During years 6 - 10, CUNY makes $2.3 million. If the lease is renewed, CUNY will make another $5 million for the next 10 year period. This is an estimation, since years 16 - 20 will be rented at 95% fair market value, which is impossible to predict right now. CUNY is paying about $200k in brokerage fees to Colliers International for facilitating this deal. Subtracting this fee, the total expected revenue for the Starbucks deal over a 20 year period is $8.7 million.

Here is the breakdown.

Please note that the one year ‘rent abatement’ period is distributed over a period of 30 months, which is not reflected in this table.


  • Who legally owns the Hunter College lobby?
The space where Starbucks will be built is a Ground Lease rental. The fee owner of the property is the Dormitory Authority of the State of New York, which operates for the benefit of CUNY, on behalf of Hunter College. A quick google search explains that long-term ground leases of publicly owned property have become a primary tool of governmental and quasi-governmental entities to generate operating income while preserving ownership of valuable assets. From the perspective of a developer (in this case Starbucks), a ground lease enables Starbucks to obtain the right to occupy and use the land with little up-front investment of cash. From the property owner’s perspective (the Dormitory Authority of New York), it generates an income stream without investing the time and capital needed to construct improvements, and preserves government ownership of the land for future use.

  • What is Grishko?
The basement level of the Hunter West building is being rented out to a dancewear company named Grishko. Inside sources have revealed that the owner of this clothing company is a personal friend of a Hunter College bureaucrat, and is renting our campus at a ‘friends and family’ discount. Students have been told that the business does not offer any job opportunities for the Hunter College community.

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︎ Analysis


Public universities should not allow for the corporatization of campus property, no matter how enticing are the financial benefits. As a symbol of academic integrity and commitment, CUNY should not place profit over our community. CUNY should not provide almost $500,000 in financial incentives to Starbucks, in addition to giving this company 1,000 square feet of our campus rent-free. It is unacceptable to give up valuable space in our overcrowded campus, when students could use this location to elevate the legacy of our university instead. Students are prepared to advocate for other options that better serve our needs, including a food pantry for hungry students or a student-run art gallery.

Students still do not know where the money from this deal is going. Inside sources have reported that Hunter College spends hundreds of thousands of dollars each year on elitist social events for President Jennifer Raab’s wealthy donor friends. Is the money from the Starbucks deal going toward subsidizing our president’s luxury catering costs? Or will this money be given as bonuses to Hunter’s administrative officials, on top of their already inflated salaries? Considering the pattern of financial mismanagement and wastefulness at Hunter College, and without a clear understanding of how the Starbucks money is going to be spent, there is a probability that these funds will be used against student interests. The Office of Student Affairs claims that the money from this deal will go toward building science labs and paying for the already completed student union, however without a clear guarantee of transparency, this information is not credible.

Hunter administration wants people to believe that providing a handful of students with jobs at Starbucks creates a win-win situation for our university. Minimum wage jobs with minor healthcare benefits are a laughable solution for the systemic problems that plague our university. Further, building a Starbucks does not create more communal space for college students if we must compete with upper east side pedestrians for seating. Starbucks food and beverages are overpriced and are unaffordable for many students. Students should not be encouraged to spend even more money on campus, especially considering that our university is increasing our tuition $1,000 over 5 years, just passed an additional $120 wellness fee, and are currently discussing adding even more tuition hikes. 
 
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︎ Calendar


Monday, January 13th @ 4:30 pm
Committee on Facilities Planning and Management
205 East 42nd Street
7th Floor, Room 0770

The BOT Facilities Planning and Management Committee will vote to approve the Starbucks deal. This is the first, smaller vote leading up to a full board vote next month. Students will be attending with signs and banners. It is essential to have a strong visible presence at this meeting to show the Board that students do not want or need another Starbucks.  

Monday, January 27th @ 4:30 pm
Board of Trustees Public Hearing
Lehman College
Center for the Performing Arts

The public hearing for the Starbucks deal is being held on the first day of classes. This is a clear, deliberate move on behalf of CUNY to limit student engagement. Please do not be discouraged. It is crucial to attend and support students who are testifying against the Starbucks deal.

Monday, February 3rd @ 4:30 pm
Board of Trustees Meeting
Baruch College
Vertical Campus, Room 14-220

This it the final vote on the Starbucks deal. We are calling for an emergency action at this meeting to stop the vote on this contract.

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︎ How this all Started


Spring 2019
There is an empty, neglected space in the Hunter College lobby. Totaling 3,000 sq. ft., this property was originally the campus bookstore. Once our bookstore moved across the street, the original location was put on the market for rent. This property is on the corner of Lexington Avenue and 68th Street.

Hunter art students had access to this incredible space in the Spring 2019 semester. We were inspired to make the most of this opportunity by organizing three student-run art shows. Students hosted art openings, made press releases, and ran a small Instagram account to promote the shows.

These exhibitions attracted over 500 people to our college, including neighborhood collectors and gallerists who were supportive of Hunter’s undergraduate art community. Everyone who particpated in these events was congratulatory and excited about our artistic ambitions. The feedback we received was overwhelmingly positive.

I hope you can imagine that students were shocked and upset when Hunter College administration shut down this amazing project. In May 2019, Hunter officially kicked students out of the space, putting an end to our dreams of a student-run gallery at Hunter College.

Every effort by students to work cooperatively with administration has led to conflict and frustration. It is clear that Hunter officials do not support student initiatives, and do not care about student needs and interests.

In the Fall 2019 semester, our principle demand was very reasonable: students wanted to organize a town hall with the Hunter administraion where students could ask questions about the Starbucks deal, and express their concerns. We fought hard all semester to make this initiative happen, however the administration undermined our efforts and this town hall never happened. Instead, in December our Undergraduate Student Government organized an informal meeting which they refered to as a ‘town hall,’ even though there were no Hunter administrators present and USG had no information to provide about the Starbucks contract when students asked. 

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︎ Student Exhibitions


January 25th, 2019
The Alternative Photography Show



February 15th, 2019
The Pop-Up Art Show


May 30th, 2019
Summer Assembly


As part of our organizational strategy, art students adopted the name ‘Sweetflypaper Collective’ in honor of the legendary photographer Roy DeCarava, who founded the photography department at Hunter College. Check out ︎@SweetFlypaperCollective on Instagram for more photos of the Spring 2019 art shows.

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︎ Students Against Starbucks


For a long time, students were confused and heartbroken that the administration was unsupportive of our hard work to elevate the artistic community on our campus. Why was Hunter shutting down our art shows? Finally, we figured it out.

Hunter College plans to rent this space to Starbucks Coffee. This is a plan that the administration has made every effort to keep secret. Administration has worked hard to suppress dialogue surrounding the Starbucks Deal by:

    1. Lying to students in meetings, and spreading disinformation. 
    2. Refusing to answer basic questions about the Starbucks Deal.
    3. Avoiding student input, including from Hunter’s Undergraduate Student Government which has also been excluded from conversations about the Starbucks deal.
    4. Bringing in New York State troopers to intimidate students during a peaceful press conference outside Hunter College that we organized to explain our grievances.
    5. Refusing to participate in a proposed Town Hall that students are requesting to discuss Starbucks. 

︎ Video

This 33 minute video details all the specifics about the Starbucks deal at Hunter College.

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︎ The Fight for a Town Hall


Fall 2019
Students met with campus security, scheduled meetings with the Office of Student Affairs, contacted the Provost of Art and the Business Development office (which ignored our emails). 

Below are screenshots of an email sent to Student Affairs after meeting at their office. In this meeting, our Vice President made it seem like we might have an opportunity to organize a town hall, which was our initial request. After all, public forums are a routine and common aspect of a fair and open democracy. Town halls happen frequently at most other CUNY campuses including the College of Staten Island, Brooklyn College and John Jay. Unfortunately, Hunter is an exception to this standard. All subsequent emails (including this one) about our town hall request have been ignored. We have not received any further communication from administration about our demands. It turns out that Hunter College has no desire to listen to students at all.


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︎ Timeline


November 8th, 2019: 
I met with Vice President Eija Ayravainen and Director of Student Life Miesha Smith. In this meeting we discussed a variety of issues I take concern with at Hunter College, including crumbling infrastructure, tuition increases, food insecurity, and the Starbucks deal being negotiated without student input.

In regards to the Starbucks deal, I explicitly asked for a town hall meeting where students could express concerns about renting our campus to this corporation. In this meeting, Eija and Miesha told me that a town hall would be difficult to organize, but not impossible. They also suggested that we could put a box on campus for students to submit written feedback on the Starbucks deal. I expressed gratitude for the opportunity to move forward with these initiatives, and the meeting ended on good terms.

November 11th, 2019:
I sent a follow up email to the Office of Student Affairs with the intention of explaining further what students would like to see happen at our Town Hall. I never received a response back to this email. The idea of creating a box for written feedback was never addressed. To my knowledge, the feedback box was never implemented.

November 18th, 2019:
I sent a second follow up email to the Office of Student Affairs asking about the Town Hall to discuss Starbucks. In this email, I explain that town hall meetings are a routine aspect of civic engagement at other CUNY colleges, and I sent information about the most recent town halls that had occurred at the College of Staten Island, Brooklyn College, and John Jay. At many of these campus meetings, the president of the school would actually attend and participate. There are no similar opportunities available at Hunter, despite all of these colleges being part of the same university: CUNY. Again, I asked for information on how to move forward with having a town hall at Hunter. This email was again ignored and I never received a response.

November 20th, 2019:
Frustrated with the lack of communication over this issue, students put together a Press Conference outside of Hunter College where students explained their grievances and demanded more transparency. Campus security monitored our event, and the Vice President was seen staring at us from inside the lobby, adjacent to where we were speaking. However, VP Ayravainen did not come outside to engage with students, nor was there any response to our demands.

A video of the Press Conference can be found ︎here. Please excuse the sound quality, as we had to shout to ensure our message was audible over the sounds of the busy city street next to us.

December 3rd, 2019:
I went to an Undergraduate Student Government (USG) meeting with a group of students who are against Starbucks. At this meeting I asked my USG representatives about Starbucks, and they informed me that the administration had kept the Starbucks deal a secret from them. When USG finally became aware of the Starbucks negotiation, they asked for an opportunity to provide student input on the Starbucks contract. President Jennifer Raab informed USG that the Starbucks deal was still pending and that there were no updates at the time. The issue was left unresolved, and student representatives did not have a clear understanding of how their input would be considered, if at all. Much to students’ shock, USG came out with a letter supporting the Starbucks deal in January 2020. We believe that members of USG were coached by the Office of Student Affairs to write a statement in favor of Starbucks, despite there being no student group on campus in support of the deal.
︎A link to the livestream of this meeting can be found here. 

Additionally,

On February 26th, 2019 a colleague of mine emailed Bruce Payne, the Provost of Art, asking about the rental space in the Hunter lobby. He never received a response to this email.

On June 5th, 2019 I emailed Darius Solomon, the Director of Business Development and Contracts, asking about the rental space in the Hunter lobby. I never received a response to this email.

On July 31st, 2019 I went to the Diversity at Work Construction Fund Conference at John Jay College where I approached Chancellor Félix Matos Rodríguez about the Starbucks rental, expressing concerns over the deal. I provided him with written documents that explained the relationship students have to this space at Hunter, and how our efforts for communication were being ignored. I made a ︎video about this.

On August 1st, 2019 I sent a follow-up email to the Chancellor, asking again about Starbucks. I never received a response to this email.

On October 9th, 2019 four fellow student activists met with the Office of Student Affairs to ask questions about Starbucks. I was not present for this meeting, but these students informed me that the outcome was not productive since the administration avoided answering all questions about Starbucks. VP Eija Ayravainen and Director of Student Life Miesha Smith explicitly denied knowing anything at all about a Starbucks deal at Hunter College.

On November 5th, 2019 my colleague filed a Freedom of Information Law (FOIL) request asking for all records on the Starbucks deal.


On December 6th, 2019 this FOIL request was completely rejected by Hunter.


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︎ Our Student-Run Press Conference


Since administration was ignoring our efforts to create transparency and collaboration, students took matters into their own hands. We organized a press conference outside of Hunter College to inform our community about the struggles we were experiencing. Students invited campus security and the Hunter administration, including the Office of Student affairs, to attend. Their response was to send New York State troopers to monitor our event. The Vice President of Student Affairs could be seen staring at us through the lobby windows next to where we were speaking outside. 

Fall 2019


︎ Video

Our press conference was a major success. In this video, there is clear demand for a better response from the administration. Please excuse the sound quality, as we had to shout to be audible over the busy street next to us. 

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︎ The Big Picture: Why does this matter?


Students do not want another Starbucks. Students do not want to give up their campus to accomodate massive corporations. A public university should prioritize students over profit. What this ordeal shows is the culture of secrecy surrounding the business dealings of Hunter College. The steps the administration is taking to profit from our college’s lobby is exploitative and hurts students.

Administration has justified their decision to build a Starbucks by stating that this location has ‘always’ been a commercial space that the university rents to third party venders. The point students are trying to make is that this practice of forfeiting our valuable campus property to corporate interests needs to be challenged.

Students originally started this fight because we wanted a space to show our art, but this conflict has become much larger and now involves many other stakeholders. This issue is not just about art students anymore. Students from the Hunter College radio station, the University Student Senate, other activist groups on campus, and the CUNY community at large, are all coming together to fight this shady Starbucks deal.

The space could be used to support students in so many ways. Right now, Hunter College does not have a food pantry on our main campus.* Students have been fighting for months to try to start this initiative, since many students at Hunter face hunger and homelessness. Instead of a Starbucks, we could build a food pantry at Hunter to support the ︎48% of CUNY students that the New York Times reports are food insecure. This is only one example of how our university could provide for students in a meaningful way. I repeat, renting our campus out to Starbucks is not a solution to any of the problems students struggle with at our universtiy.

*Spring 2020 Update: Hunter College recently opened a food pantry in the Hunter West building! This is an exciting new development, which students are celebrating as a major win. More details are coming soon on how our activism helped finally open a food pantry after years of struggle.


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︎Press

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NYC High School and College Students Demand “Cops Out!” of Schools
by Hakim Bishara and Valentina Di Liscia in Hyperallergic on January 31st, 2020 ︎https://hyperallergic.com/540230/nyc-high-school-and-college-students-demand-cops-out-of-schools

Students Demand Starbucks Town Hall, Dean Responds
by Melissa Lent in The Envoy: A Student-Run News Site for Hunter College on November 27th, 2019
︎https://thehunterenvoy.wordpress.com/2019/11/27/students-demand-starbucks-town-hall-dean-responds/


︎ For more press coverage click here.
Mark