My take is somebody balked on the ‘relative’ terms of the development rather than a matter of fact breach of contract. There was an uncommittable ‘term sheet’ drawn up in mid 2014 addressing the $s and sense to proceed with the project. It included stipulations related to property management and codes compliance. I don’t know if it came to finalization, but the issues presently at question were known at the time. The term sheet has actual construction costs at approx. $7 million. Divided by 60 units, that is $116k per unit. That’s tight in consideration of an allocation toward ‘maintenance and repairs’ of the entire property as a prerequisite to new development. Having walked the grounds, I think there could be an interpretation issue of “repairs” vs capital improvements. Inquiring, I was told last year by a board member that “they were looking for a sponsor”. Read into that what you want.
Confidence is Newburgh’s #1 resource deficiency imo.
http://www.recordonline.com/article/20160307/NEWS/160309516
http://www.cityofnewburgh-ny.gov/sites/newburghny/files/minutes/minutes-file/2014_6-16_final_minutes_for_web_site.pdf page 5 and 9-
Maybe there will be info in future minutes…http://www.cityofnewburgh-ny.gov/industrial-development-agency
Reply To: The Foundry Condos?
April 5, 2016 at 12:39 pm