8.17.09 On the chopping block: A controversial property on the sealed bid list is 257 Liberty, the building adjacent to Audrey Carey Park that is vacant and attractively decorated on its eastern façade with window paintings.  The property was sold to the Newburgh Community Action Committee in the past for a song, then bought back by the city by resolution 94-2005 on May 9th for $150,000.  In the minutes of that resolution, Councilman Bowles remarks that this “will benefit the Park and could also be a traveling spot where people can come into our City and obtain information about our City through a traveling library.  It will also be a place for young kids to see what the past has been through with pictures or movies.”  Councilwoman App: “it was the Audrey Carey Park Committee [anyone recall who was on this?] that came forward and asked the council to please purchase this so that they could make it accessible to the Park participants.”  Councilwoman Angelo: “will be voting ‘yes.’ This will provide bathrooms and a caretaker.”  Mayor Valentine: “will be voting ‘yes’ after careful consideration and reviewing in his own independent way that this would be a benefit not only to the neighborhood but certainly to the Park, which he thinks is finally on track and moving forward in a very good way.”  No comment, but a Nay vote from Councilman Cracolici.  In her comment, City Manager McGrane says the money for this will be coming from the “Property Management Program.”  McGrane’s Property Management Program mustn’t have fared so well, since in resolution 174-2005 she is shuffling money from the “Equipment Contingency” budget line to the “Acquisition of Property” to cover the purchase.  No comments about the change in funding.  Councilman Cracolici comments “that he thinks the seller should be responsible for the asbestos removal.”  Councilman Bowles comments that “this is a good thing for the Liberty Street area.  This is growth and we should do as much as we can for the people of downtown.”  The resolution passes 4-1.  Update to 2009: Dwight Douglas and Lourdes Zapata, both now city alums, both were adamant that it would be impossible to make public use of the building due to the cost of making it ADA compliant.  Hmmm.

midbroadwaybusiness

Mid-Broadway Business District (former Carchietta properties)

There’s a new district in town – the “Mid-Broadway Business District,” christened by Assistant City Administrator Courtney Kain.  The properties were formerly known as the “Carchietta lot,” the vacant site on the North side of Broadway.  The City is planning on issuing a RFQ to selected parties to come up with a plan – “new construction,” according to Interim City Manager Dwight Douglas.

Will the RFQ mention asbestos and lead abatement?

Not discussed was the potential place of the Newburgh Inudstrial Development Agency with regard to these properties.  Perhaps this will be a discussion item when the IDA meets with the City Council at the Council’s work session on August 13th.  The RFQ would already be issued by that point – Douglas is aiming for July 24, with a return date expected to be the last week of August.

Also, a funding mechanism of the past – KNEC – was mentioned; Douglas made a reference to $200,000 of KNEC funds with regard to expenses for the disposition of property.

Post-meeting follow-up: Ms. Kain explained the Carchietta properties were taken back through In Rem proceedings, and the judge signed an order passing them to the city about two weeks ago.

Council Work Session

Full audio recording of the work session meeting is available here.

“I can’t see how anyone would seriously entertain this… I mean, this is really outrageous.”

So said Newburgh Industrial Development Agency board member Jerry Maldonado, upon hearing that the developer Robert Carchietta is requesting additional city property through a proposed agreement with the city council – even though Mr. Carchietta is currently in foreclosure for the Broadway property he already obtained from the IDA.  The IDA board was discussing the status of Carchietta’s project at their meeting Monday evening, January 5.  The Broadway lot looked like this in 2006:

Not much has changed in two years.  The lot is still empty.

According to Lourdes Zapata, IDA Adminsitrative Director, a benchmark was set by the IDA that Mr. Carchietta would, by December 30, 2008, obtain a “C of O” for the project – a certificate of occupancy.

“Clearly, he’s missed all of those benchmarks,” said Ms. Zapata.
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Ms. Zapata said that Mr. Carchietta would go before the city council at the second work session in January.

With regards to the foreclosure action, board member Michael Curry wondered “if [the IDA] has been named as a defendant, has there been an attempt to serve us?” Ms. Zapata did not know.  Mr. Curry suggested the IDA write a letter to the council “saying that we have interest in that propety, and we do not wish to see it bundled with any new property without further action from [the IDA].”

Is the IDA on the hook for Carchietta’s foreclosure?  They were a signatory on mortgage documents, as previously reported here.

Ms. Zapata says no. “From the conversations with Bob [Robert McKenna, former IDA director], it’s really just because the IDA does hold some reverter action authority to it, not because M&T is taking action against the IDA.”

“And is the city considering any legal action against the holding company [Carchietta]?” – Maldonado.

“I don’t believe so.” – Zapata.

“Why not?” – Maldonado.

Ms. Zapata said she would have to find out.

Let’s not forget to test for asbestos and lead

Following the main discussion of Mr. Carchietta’s situation, IDA board member Joshua Smith advised that should the reverter happen, they should be concerned about “how clean that site is… whether it was remediated for lead paint and asbestos.”
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Unanimous Call for State Comptroller Audit

In the second hour of the meeting, Joshua Smith called for an audit of the IDA to cover the time period 1998-2008.  After some brief discussion, the resolution was approved by the board unanimously.

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