1. September 24, 1984 City Purchases Broadway School for $150K

Resolution No. 6
A resolution authorizing the city manager to execute a contract to purchase the Broadway School (from the Newburgh School District)

Broadway School will be purchased by City and altered for use as a City Hall. Additionally “space in the building will be made available for the use of ‘Club 60′, an organization assisting senior citizens.”

Councilman Rossi suggests tabling due to lack of public input. Concern that price is $150K “but we do not have the true renovation costs.”

Councilman Carey said there was an assessment [made] by the City’s Consultant Engineer and it has been on the record for several months… There was a time when the building was offered to the City for a dollar… She felt it should be questioned why the City did not purchase the building for a dollar, when it was offered to them.

Ayes-Councilmen Carey, Lentini, Presutti, Rossi, Mayor Shapiro-5.
Carried.

There were a number of comments from the audience regarding the proposed move of City Hall to Broadway School. Concerns expressed included the city-wide impact the move would have on revitalization, whether the Broadway School would meet the needs of the Club 60, and practicalities of parking and all the steps if the School was used as City Hall.

2. November 25, 1985 Bond Resolution for Broadway School Renovations (to become City Hall) Defeated

Bond and Capital Note Resolution, Dated 1985, authorizing the issuance of $1,143,000 aggregate principal amount serial bonds and $42,000 aggregate principal amount capital notes of the City of Newburgh, New York, located in Orange County, pursuant to the local finance law, to finance (1) improvements to the water facilities, and (2) renovations of buildings.

Regarding Broadway School renovations:
b. The reconstruction of the Broadway School, a building of Class “All construction, as that term is defined in Section 11.00 of the Local Finance Law, for use as City offices, at an estimated maximum cost of $839,000 for which $797,000 serial bonds and $42,000 capital notes are authorized herein, having a period of probable usefulness of twenty (20) years pursuant to subdivision 12 of paragraph a of Section 11.00 of the Local Finance Law. Such serial bonds shall have a maximum maturity of twenty (20) years computed from the earlier of (a) the date of such serial bonds, or (b) the date of the first bond anticipation notes issued in anticipation of the issuance of such serial bonds.

Councilman Rossi moved and mayor Shapiro seconded that the resolution be TABLED.
Ayes-Councilman Rossi, mayor Shapiro-2.
Noes-Councilmen Carey, Lentini, Presutti-3.
MOTION DEFEATED.

Councilman Presutti moved and Councilman Carey seconded that the resolution be adopted.
Ayes-Councilmen Carey, Lentini, Presutti-3.
Noes-Councilman Rossi, Mayor Shapiro-2.
MOTION DEFEATED. (Four votes needed to pass)

Attached is a long statement by Mayor Shapiro that explains her reasoning against moving City Hall to Broadway School:

Directly after the purchase of the Broadway School by the City from the Board of Education, in the Evening News – Superintentant of School, Dr. Philip Leahy stated, and I quote – “It would cost the School District from $1 million to $2 million to update the electrical, plumbing and heating system in the building.”
I am sure that the Board of Education heaved a great sign of relief when they unloaded their burden. I know I would if it were mine.
It is not economically viable or prudent or appropriate for the City of Newburgh to move its government offices to the former Broadway School.
We are working daily to help repair and rebuild Newburgh, and I have complete faith in our City’s ability to insure Newburgh’s economic future; and I still maintain that we cannot afford the financial [encumbrance] of the Broadway School relocation.
The most recent engineering reports substantiate spiraling cost estimates, with no evidence of a real sense of “hands-on” cost control. As we get deeper into the fray, I fully anticipate more unexpected runaway costs to emerge; the property at issue eats fuel with no conscience; the building is fertile with thousands of square feet of halls and corridors that require heat but provide no functional benefits. They are costly excess baggage. Therefore, in my opinion we cannot accurately assess or evaluate the final projected expenditures that we will undoubtedly incur.

3. July 24, 1986 Public Hearing to consider UDAG Application and VOTE on Resolution No. 126-86

Resolution No. 126-86 of the City of Newburgh approving the submission of an Urban Development Action Grant Application for the construction of professional office space at 298 Broadway in the City of Newburgh, New York.

There is a public hearing about the resolution and a vote at the same meeting. There are a lot of comments in the public hearing:

Mr. Arthur Powell, 87 South William Street, said he was not clear as to who would own the building. The City Manager said it is a partnership with the City’s IDA, the National Development Council and the local engineering firm of McGoey & Hauser will also be an owner and a tenant. Mr. Powell said he was opposed to this. He said he would rather see the City as the sole proprietor of the project and rent out the space to others.

The public hearing was introduced by Mr. Andrew Damiano, Director of Economic Development.

Daniel Marsh is also present, presumably representing the National Development Council:

Mr. Dick Maney, who also owns 469-473 Broadway with Mr. Higgins, asked if the City had engaged in these kinds of activities before? Mr. Daniel Marsh former Director of Economic Development reviewed all the projects of the IDA. Mr. Maney asked if all the buildings were fully occupied. Mr. Marsh said all but Little Britain Road which is half occupied.

Mr. Higgins said there will be space available when Key Bank builds and there is space available in other parts of the City. He asked why it was necessary to take a building from the School district, transfer it to the IDA, and transfer it to a private concern. It seem that something that was property of the taxpayers has not somehow gone to a private enterprise, in spite of the fact that there is available space. He also questioned whether $7.00 to $10.00 is really going to be the market level or below market level. He encouraged the Council to not do this.

Mr. Damiano said the City of Newburgh is not a partnership in this development. It is the Local Development Council that is a partner. The property will be on the tax rolls and it will be assessed. The City Manager said the taxes will be payment in lieu of taxes so we will collect without getting on the assessment rolls.

Mr. Arthur Powell, said it is government funds being channeled to private sources. Who is the IDA? The IDA is not separate from the City. It is a dummy corporation. It is our elected officials who are here to represent the people of the City in their best interests.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newburgh, that the application for UDAG assistance entitled “DENCASS ASSOCIATES” dated July 31, 1986 be hereby approved.

Councilman Distefano moved and Councilman Lentini seconded that
the resolution be adopted.

Ayes-Councilmen Lentini, Distefano, Crabb, Mayor Shapiro-4. Adopted.

4. August 11, 1986 Resolution No. 131-86 and public hearing

A RESOLUTION AUTHORIZING THE CONVEYANCE OF THE BROADWAY SCHOOL TO THE CITY OF NEWBURGH LOCAL DEVELOPMENT CORPORATION.

This is the actual transfer of the property from the City of Newburgh to the “Local Development Corporation.” Den Cass is not mentioned in the resolution.

The terms are:
1. The purchase price is to be $180,000.00.
2. The City shall be paid by taking a purchase money mortgage in the amount of $180,000.00 for a term
of 30 years bearing interest at the rate of six percent (6%) per annum to be repaid in equal monthly
payments of amortizing principal and interest to commence on the closing of the title. Which
mortgage shall contain the standard terms for the protection of the City as determined by the City
Manager.
3. The City of Newburgh shall have a right of first refusal to purchase the property if it is sold
prior to thirty years from the date of closing.

Arthur Powell gives a speech during the public hearing. He is critical of the Broadway School transfer:
…The Council should begin to look at their own conscience. We are interested in helping the private investors with taxpayers money. This is wrong… If you are corrupt, then the community will be corrupt, if you are immoral, then the community will be immoral. You are committing a crime against the community and it is unfortunate that you cannot be put in jail. You have already given away property.

5. June 15, 1989 Local Developement Corporation Resolution No. 1

Authorizing and Directing the Officers, Directors and Administrative Director of The City, of Newburgh, Local Development Corporation to loan up to $250,000.00 to Den Cass Associates during the construction period of the Broadway School project.

Money is loaned to prepare Broadway School for lease with Orange County Community College.

6. February 24, 1997 Resolution No. 9

A RESOLUTION TO WAIVE THE CITY’S RIGHT OF FIRST REFUSAL IN REGARD TO A TRANSFER OF REAL PROPERTY FROM DEN CASS ASSOCIATES TO UNITED MUNICIPAL LEASING CORP.

Councilman Rockafellow explained that the City has been considering an offer from someone to buy the Broadway School. The City has consistently stated it would not sell to anyone who plans to move the college from it. The advantage to selling it would be it would free up money that the City has invested in that project for use in other projects. Every precaution is being taken to insure that the college remains here.

Ayes-Councilwoman Angelo, Councilwoman Koisch, Councilman McAllister,
Councilman Rockafellow, Mayor Carey-5.
ADOPTED.

7. March 24, 1997 Public Comment

Madeline Scanzano, South St., asked about the situation regarding the sale of the Broadway School. Councilman Rockafellow responded that Den Cass Assoc. is a partnership that owns the School and is made up of the Local Development Corporation, two local engineers, William Hauser and Richard McGoey, and a doctor from Hudson, Dr. Sanford Ulman. The prospective buyer, United Municipal Leasing Corp., must reach an agreement with O.C.C.C. for a long-term lease, and since that has not yet happened, they are working on a 90-day extension before closing. By selling the building, more than $1 million will be freed up in City development funds to go to the LDC and its sister agency, the Industrial Development Agency. The City will recover approx. $160 thousand of its original purchase price of $180 thousand which Den Cass was repaying.

8. July 30, 1998 Resolution No. 131-98

A RESOLUTION AUTHORIZING THE EXECUTION OF A SUBROGATION AGREEMEENT WITH ALBANK, FSB

WHEREAS, Albank, FSB wishes to grant a mortgage to The City of Newburgh Industrial Development Agency for the property at 294-306 Broadway, formerly known as Broadway School; and

WHEREAS, The City of Newburgh holds a prior mortgage on such property, which mortgage contains certain rights; and

WHEREAS, Albank, FSB, in consideration for the mortgage to be granted by it, wishes the mortgage held by The City of Newburgh and the rights thereon, to be subordinate to the mortgage to be granted by Albank, FSB; and

9. September 14, 1998 Resolution No. 159-98

A RESOLUTION TO WAIVE THE CITY’S RIGHT OF FIRST REFUSAL IN REGARD TO A TRANSFER OF REAL PROPERTY FROM DEN CASS ASSOCIATES TO THE NEWBURGH ENLARGED CITY SCHOOL DISTRICT

10. October 26, 1998 Resolution No. 184-98

A RESOLUTION TO EXTEND THE WAIVER OF THE CITY’S RIGHT OF FIRST REFUSAL IN REGARD TO A TRANSFER OF REAL PROPERTY FROM DEN CASS ASSOCIATES TO THE NEWBURGH ENLARGED CITY SCHOOL DISTRICT

11. April 24?, 2000

Dr. Laval S. Wilson, Superintendent of Schools, spoke in support of the Newburgh Enlarged City School District’s Proposition No. 3, for the purchase and improvement of Broadway School, among other buildings. Dr. Wilson said the school district has been renting the school for the last two years and feels it would be cost effective to purchase the building. He said he is pleased the Council is considering a resolution in support of this
proposition, to be voted on May ]6th.

12. May 8, 2000 Resolution

IN SUPPORT OF NEWBURGH ENLARGED CITY SCHOOL DISTRICT PROPOSITION NUMBER 3 FOR THE PURCHASE AND IMPROVEMENT OF BROADWAY SCHOOL, AMONG OTHER BUILDINGS.

2006… City Purchases Broadway School for $2.7Million.

Illustrations ©2008 Shin.