Mid Hudson Times, Wednesday, March 16, 2016
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City IDA seeks to intervene in Foundry condos lawsuit
Foundry condo owners declined to
comment on the situation this week.
The Foundry board did not respond to
requests for comment.
In the meantime, the building appears
to be suffering. A violation notice from
the City of Newburgh Fire Department
last year outlined several building code
violations at the Foundry, some relating
to weeds, roof drainage, garbage, an uninspected fire sprinkler system, electrical
issues, unsafe staircases and a structurally-deficient parking deck.
The IDA criticized both parties, stating,
“FDG and the board of managers share
responsibility for maintenance of the
condominium building, but have failed
to maintain the condominium building
properly and have failed to remedy code
violations…”
Sussman maintains FDG wants to come
to an agreement with the board. “The IDA
has tried to play the role of honest broker
and its legal papers criticize both sides,”
he stated. “We continue to hope for a positive consensual resolution that serves all,
including the city.”
All documents relating to the IDA’s
request will be filed with the county
Supreme Court by April, said Whyatt. It
is possible the court may then order the
parties to appear for a hearing or a status
conference, he said.
A dispute between the Foundry at Washington Park developer and the Foundry board has brought the building of 59 condos to a standstill.
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building fixed up to meet code and make
the improvements required by the lender.”
The IDA’s goal? “We’re trying to get the
parties to the table, to spend the money
and get the building back in order,” said
Whyatt. And, according to an IDA press
release, because the condos “will provide
an important economic benefit to the city
and its Liberty Street Corridor.”
The building was deeded to the IDA in
90s. A reverter clause contained in the
deed means the property can revert back
to IDA ownership if development comes
to a halt. “We have a legal interest in the
property,” said Whyatt.
All was quiet on Johnes Street in front
of the condominium on Friday afternoon.
There was no sign of the legal battle taking place over the building, a former iron
foundry and ice machine-manufacturing
plant dating back to the late 1800s now
occupied by renters and condo owners.
In addition to undermining its ability
to obtain financing, said Whyatt, FDG
claims the board has failed to properly
maintain common areas and overcharged
for “common charges,” monthly maintenance fees paid to the board by condo
owners.
“My client has been frustrated by the
condo board’s failure to properly maintain the building,” FDG attorney Michael
Sussman stated in an email this week.
“This failure caused our funding source
to withhold funding. That has created a
vicious cycle.”
The board has counterclaimed that
FDG has defaulted on a construction
schedule and owes the board more than
$1.3 million dollars in common charges,
Whyatt said.
The IDA asked the court to require FDG
to pay the board approximately $110,000
in common charges, “which the FDG has
refused to pay because of the ongoing
disputes between the parties,” IDA Chair
Joshua Smith stated in the press release.