“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.
[Video deleted]
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.”
[Video deleted]
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.
[Video deleted]