This story has been updated to include statements received from different parties since Friday, March 28.

Agallas Equities, a Manhattan-based real estate firm, announced on Friday, March 28, the filing of a lawsuit against NYC Economic Development Corporation (EDC), Andrew Kimball as CEO of EDC, 8th Regiment Partners LLC, a joint venture of Maddd Equities and Joy Construction, Bronx Borough President Vanessa Gibson and Deputy Bronx Borough President Janet Peguero over what it alleges was “the controversial selection” of a rival, chosen developer for the Kingsbridge Armory redevelopment project, as announced in January.

 

The documents filed in New York State Supreme Court allege “a troubling pattern of political interference, procedural violations, and apparent intellectual property theft that [allegedly] corrupted what should have been a fair and transparent [Request for Proposal (RFP)] public process” for the redevelopment of the City-owned Armory. An RFP is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it.

 

Manny [Manuel] Tavarez, managing partner of Agallas Equities, said, “This isn’t just about our company; it’s about proving that The Bronx won’t tolerate business-as-usual corruption. We will expose every backroom deal, every stolen idea, and every broken rule until justice is served and this community gets the development it truly deserves.”

 

Tavarez added, “Though Congressman Adriano Espaillat [NY-13] is not a respondent in the complaint, we are considering federal litigation to hold him accountable for his [alleged] direct involvement in [allegedly] corrupting the process. Our legal team is also evaluating moving to amend our filing to include NYC Councilmember Pierina Sanchez [C.D.14] as a respondent, based on new evidence of her [alleged] active role in subverting due process.”

 

According to Tavarez, the filed complaint, a copy of which has been received by Norwood News, reveals how, according to Agallas Equities, “EDC [allegedly] improperly awarded the project to 8th Regiment Partners LLC, a joint venture of Maddd Equities and Joy Construction, despite [alleged] glaring irregularities in the procurement process and compelling evidence that the winning team [allegedly] stole key elements of their proposal from rival bidder, Agallas Equities.”

 

According to Agallas, the firm’s lawsuit seeks to nullify the contract awarded to 8th Regiment Partners, compel disclosure of all records about the selection process, refer evidence of misconduct to city, state and federal law enforcement agencies, and award the project through a new, transparent process.

 

The firm’s representatives said key “revelations” in the lawsuit allege that “political favoritism tainted the process” and that Peguero [allegedly] “improperly participated in the process.” According to a New York State Ethics Report for the filing period 2021-2022, and as reported by The City media outlet, Peguero was listed as a prior lobbyist for Maddd Equities.

 

While at least one social media post had been circulating online since March 28 that suggested the deputy borough president had resigned, her LinkedIn profile had [until around April 11] remained unchanged. A footnote included in the filed lawsuit (complaint), as reported by The Bronx Times, alleged, “Notably, Ms. Peguero is set to return in April 2025 to work as a lobbyist at her former employer, Constantinople & Vallone Consulting, where she will work exclusively on the Kingsbridge Armory project.”

 

Norwood News reached out to the Office of the Bronx Borough President for comment on the deputy borough president’s employment status, and on April 7, the Office announced she had resigned to focus on her family, as reported. We also tried (initially unsuccessfully) to reach the deputy borough president directly for comment.

 

On April 11, we received confirmation from Peguero that indeed she has taken up a new senior role with Constantinople & Vallone Consulting, as reflected in her updated Linkedin profile. She also shared a full statement included in full in our separate story, adding that shee had resigned in February on returning from maternity leave. Read the full story here.

 

Meanwhile, Agallas Equities also alleges EDC broke its own rules by allegedly allowing Maddd Equities’ team to secretly revise its proposal after the submission deadline, and allegedly ignoring required scoring criteria to favor the applicant which Agallas Equities describes as “the politically-connected bidder.” Agallas Equities went on to allege that EDC refused to release key records about the the Kingsbridge Armory winning bid selection, despite receiving FOIL [Freedom of Information Law] requests.

 

Agallas also alleges stolen intellectual property, alleging the winning proposal copies distinctive elements from Agallas’ plan including:

▪ an identical two-phase development approach;
▪ nearly identical event space design;
▪ identical programming, and
▪ “suspiciously similar” architectural renderings.

 

The firm also alleges a Maddd principal allegedly admitted his team had [devised] “no programming” [in preparing for their submission].

 

Christopher Carrion of Carrion Law Group, attorney for Agallas Equities, said, “This case exposes how political connections trump merit in New York City development deals. We’re sending a clear message that no one is above the law, not developers, not agencies, and certainly not elected officials who abuse their power.”

 

Asked if Agallas Equities had prior formal contact with the opposing legal parties to the lawsuit before the court filing, Tavarez said, “Yes.” Asked if, similarly, it had also had prior formal contact with Espaillat and Sanchez in relation to the situation, Tavarez said, “Absolutely, with both.”

 

Tavarez’s longheld interest in the Armory becomes more clear further below. Meanwhile, according to EDC, its policy is “to provide equal opportunity for any business to compete for contracts using public funds, sourced, administered, or authorized by the City of New York.”

 

As reported, the latest two-phase, mixed-use plan for the long-vacant Armory was unveiled by City and State officials on Jan. 7, when 8th Regiment Partners LLC was named as a selected partner. NYC Mayor Eric Adams, New York Gov. Kathy Hochul, Espaillat, Gibson, Sanchez, and Kimball announced “El Centro Kingsbridge” (The Kingsbridge Center) as the name of the latest chosen redevelopment plan for the Kingsbridge Heights-based Armory.

 

They said at the time, “Phase One of the project envisions a vibrant, mixed-use development with a state-of-the-art event venue space, sports fields for local youth academies, cultural and commercial space, over 25,000 square-feet of dedicated community space, an educational facility focused on workforce development, and more.”

 

They said the latest proposal is designed to serve both the local community and the broader region and that programming is centered around the 180,000-square foot, column-free Drill Hall. They said the development team would lead the design and construction stages of the project, as well as the operation of the renovated Armory.

 

It came after the conclusion of the latest Armory RFP bidding process which kicked off in September 2023, and had a deadline for receipt of bids of mid-January 2024. According to government officials, submitted proposals were reviewed to assess which bidder best met the requirements of the community after a lengthy envisioning process for the historic and long-underutilized site, which spanned several months.

Officials went on to say in January, “Phase Two includes 450 units of permanently affordable rental housing adjacent to the armory,” adding that the redevelopment was expected to generate nearly $2.6 billion in economic impact over the next 30 years, creating over 3,000 construction jobs and 360 permanent jobs.

 

In November 2024, the mayor announced that two Project Labor Agreements (PLAs) had been secured with NYC Building & Construction Trades Council (BCTC) for various, major City development projects, with more to follow, including the Kingsbridge Armory.

 

In January, elected officials confirmed that the Armory redevelopment would indeed be carried out under a PLA, ensuring fair wages and benefits for construction workers. They said the environmental review was expected to begin this winter, and the uniform land use review procedure (ULURP) was anticipated to commence in mid-2025.

 

The news garnered positive feedback from Sandra Lobo, executive director of the Northwest Bronx Community & Clergy Coalition (NWBCCC), which has campaigned for decades to ensure the armory’s redevelopment serves the local community and workers, both during and post-development and construction. After years of community advocacy, the nonprofit 501(c)(3) even submitted its own redevelopment proposal as part of the latest RFP process but was ultimately unsuccessful.

 

Lobo, along with Sanchez, was a co-chair of the most recent “Together for Kingsbridge” envisioning process and coalition behind the latest redevelopment plan for the Armory, located at West Kingsbridge Road and Jerome Avenue.

 

Lobo offered her comments on the announced plan in January, saying in part, “We are glad to see the City has selected, at long last, a new plan for the transformation of the Kingsbridge Armory. While we are disappointed that our proposed project, “La Armería,” was not selected, we are eager to understand how the designated plan will meet the City’s Together for Kingsbridge vision.”

 

As reported, the latest RFP bidding process followed the last failed Kingsbridge National Ice Center (KNIC) Armory redevelopment proposal first discussed in 2012, and which fell through amid a legal dispute (and not the first) over financing concerns at the end of the De Blasio administration in November 2021. As reported, the developer behind that proposal, KNIC Management, denied financing was an issue.

 

Back in 2013, as part of those Armory redevelopment discussions on the KNIC project, NWBCCC had worked tirelessly, as part of a wider community stakeholder group called CAC, to broker with KNIC Management a historic, first-of-its-kind community benefits agreement (CBA).

 

While the Armory’s protected status as a historical building, and the largest armory in the country, limits what it can be used for, that 2013 negotiated CBA included a promise of 50,000 square feet of space for community use, living wage jobs, local hiring and contracting, and local procurement and technical assistance for small local businesses. At least 51 percent of the resulting jobs were set to be filled by the local community under its terms.

 

Meanwhile, according to public information, and as reported by The City media outlet, in addition to his role with Agallas Equities, Tavarez is also the principal officer of the nonprofit International Salsa Museum Corp. As reported by Norwood News, in 2021, due to a perceived lack of movement with the KNIC project at the time, an alternate idea for the Armory’s use began to be floated in the form of an international salsa museum.

 

A press conference was held on June 15, 2021 at which board members for the International Salsa Museum Corp, including Tavarez, presented the plan. The same entity registered as a nonprofit in 2022. Since the Salsa museum did not appear to have been part of the original KNIC redevelopment plan, Norwood News asked then-KNIC project developer, Kevin Parker, in June 2021 if indeed such a salsa museum was being considered as part of any final KNIC project.

 

As reported, Parker said the designated community space (negotiated under the above-referenced CBA) was being managed by CAC. He said KNIC Management, though a member of the 11-member CAC board, had no input into how CAC planned to use that designated community space.

 

Parker also confirmed he had not been approached directly to discuss a salsa museum. He also stressed that neither had the required lease between KNIC Management and the City of New York been signed yet. He reiterated that the community was free to develop the designated “community space” within the Armory however it chose.

 

After the City announced in late 2021 that the KNIC project wouldn’t be going ahead, NWBCCC, in conjunction with EDC, subsequently went back to the drawing board, and held numerous “Together for Kingsbridge” workshops to gather input from the community of what they wanted to see implemented instead of the ice center.

 

In the meantime, in March 2022, the New York State Office of General Services, the New York State Military & Naval Affairs, and the U.S. National Guard held ground-breaking ceremonies for a $10 million upgrade to two annexed buildings situated on the grounds of the main Kingsbridge Armory complex, located adjacent to the main armory building.

 

In terms of the main building, the final vision plan which, crucially, had the support of various elected officials, and which was based on the community’s feedback, was shared with prospective bidders/developers during the RFP process launched in September 2023, with a deadline for responses of Jan. 18, 2024. The RFP process was boosted by the announcement of joint funding of $200 million from both the City and State governments in August 2023.

 

In addition to that $200 million, a further $2 million was pledged by the Bronx Borough President’s office, $12 million from Sanchez’s office, and a $1.05 million grant from the U.S. Department of Housing and Urban Development (HUD), with the support of Espaillat.

 

At the Bronx Community Board 7 (CB7) land use committee meeting in March 2024, Fernando Ortiz, Bronx borough manager with EDC, said the selected developer and project for the Armory were due to be announced by the end of 2024. The following month, as reported, a fire broke out at the Armory, apparently due to burning cables.

 

NWBCCC, as the longtime key stakeholder in the process, had most recently proposed six recommendations for the Armory’s future use. Of the latest announced “El Centro Kingsbridge” development plan, Lobo said in January, “The City’s vision calls for a ‘redevelopment that creates quality jobs, supports career development, [and] elevates entrepreneurs.’ So far, there is only a general list of intended future uses for the Armory, without any concrete information on the programming or partners who will help bring it to life and meet these goals.”

 

She said this was of concern to those who, after 25 years, wanted the Armory finally transformed into an economic engine that prepares people for good-paying jobs of today and tomorrow, and maps a path for the power and capital generated by The Bronx to support The Bronx.

“We are convening a Coalition of Accountability made up of faith, community, labor, and small businesses that will continually monitor and advocate for a project that is transparent and genuinely invests in the community that surrounds it,” Lobo said. “The coalition will center its work around four areas: good jobs, community ownership, anti-displacement, and environmental standards. It will also pursue a legally binding Community Benefits Agreement that ensures these core priorities become a reality.”

 

She added, “The Armory must be rebuilt by workers who can be sure of their safety, and be home to good union jobs once construction is complete. Its activation cannot jeopardize the economic livelihood of the working people of the Bronx and accelerate the displacement of residents and businesses. We also seek to understand how the City’s Guiding Principle of community ownership will come to life.”

 

Lobo concluded, “This is the third attempt to develop the Armory, one that may finally be on the road to ‘[ensuring] this community gets the investment it deserves, while strengthening New York City’s economy,’ as the vision articulates. We will remain cautiously optimistic and proactive in our work to achieve this vision, ensuring that our community can withstand the pressures of gentrification and thrive amid the coming changes. Kingsbridge and the Bronx deserve nothing less.”

 

As reported, a rally was held on Jerome Avenue by East Kingsbridge Road in December 2023 amid concerns the commercial leases for small business owners operating in the vicinity of the Armory were at risk, as their landlords apparently began considering more lucrative offers in light of the impending Armory redevelopment.

 

Of the project announcement in January, Gabriella Madruga, principal at Maddd Equities, had said in part, “This is a wonderful example of a public-private partnership that will revitalize one of the most unique and historical buildings in New York.”

 

Norwood News reached out to EDC, Maddd Equities, Madruga, Joy Construction, the Office of the Bronx Borough President [for comment from both the borough president and the deputy borough president], Espaillat, and Sanchez for comment. We also reached out to NWBCCC for comment.

 

We received a statement from an 8th Regiment Partners spokesperson on Monday, March 31, which read, “We are proud of the restorative plan we have put forward for the historic Kingsbridge Armory – a plan that includes many community priorities that were laid out during the public visioning process.”

 

The statement continued, “In line with our long-standing, successful track record executing public-private projects in New York City, we look forward to continuing to work with the Bronx community over the coming months and years to deliver the jobs, housing and economic benefits of this City-supported project.”

 

We also received a response on March 31, from Lobo who said, “At this time, our position remains the same: the Kingsbridge community has waited far too long for the Armory to be activated in a way that truly serves the people of The Bronx. We continue to hope that nothing delays or derails the opportunity to realize a transformative project that delivers community ownership, good union jobs, and lasting economic benefit for our neighborhoods.”

 

On Tuesday, April 1, we received the following statement from the Office of the Bronx Borough President. “It is not uncommon with large projects like this to have some litigation. There is a great deal of time and money invested in the bidding process, and only one applicant can be successful. Someone is always going to be unhappy. There have been no valid claims made involving The Office of the Bronx Borough President, and it is evident that the Office was named merely in an attempt to generate news and attention.”

 

It continued, “The redevelopment of the Kingsbridge Armory is a long-overdue investment in The Bronx, promising thousands of jobs, hundreds of affordable housing units, and numerous safe community spaces. Attempting to obstruct this development for selfish business and political reasons is nothing short of disgraceful.”

 

We also received the following statement from EDC on April 1. “After a rigorous evaluation of all proposals, NYCEDC selected El Centro Kingsbridge’s proposal, which is consistent with the values of the Kingsbridge Vison Plan and the requirements of the RFP,” the department wrote.

We were informed that due to pending litigation, EDC was unable to comment further. The department reiterated that the “El Centro Kingsbridge” proposal exemplifies the “Together for Kingsbridge” vision plan and demonstrates the greatest ability to deliver on a diverse program as outlined above.

 

On Tuesday, April 8, we receved a statement from Sanchez. “The Request for Proposal process and selection of a developer for the Kingsbridge Armory is at the sole discretion of the NYC Economic Development Corporation,” the councilwoman said.

 

“As I have made clear since the beginning, the guiding principles set forth in the ‘Together for Kingsbridge’ vision plan, the result of nine months of robust community engagement, will remain my north star through the process,” she added. “We must ensure that the redevelopment of this great structure is both transformative and equitable for generations to come.”

 

Norwood News will share any additional feedback we receive. Joy Construction has an address at Fulton Street in Manhattan, and Maddd Equities has an address on Long Island.

 

As reported, NWBCCC announced on its 50th anniversary a planned merger with the Bronx Cooperative Development Initiative (BCDI), a partnership expected to expand the two group’s collective reach across the entire borough.

According to the lawsuit documentation, EDC is a domestic public benefit corporation organized under the not-for-profit corporation law of the State of New York, with a principal place of business in Manhattan.

 

Editor’s Note: The headline for this story has since been updated to include a reference to the [chosen] developer, which has also been sued in addition to the EDC, and the named Bronx politicians. It has also been updated to reflect the fact that Andrew Kimball, CEO of EDC, is also named in the lawsuit. Other background and supplementary details, for clarity, as well as additional responses to questions raised about the case, have also since been added to the story.