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EXCLUSIVE: KNIC Files Suit Against City

CONSTRUCTION FOR AN ice skating arena at the Kingsbridge Armory (pictured) may not happen until March 2016, more than two years after the New York City Council approved the project. Photo by Adi Talwar
THE KINGSBRIDGE ARMORY is now the subject of a lawsuit filed by the Kingsbridge National Ice Center against the city.
File Photo by Adi Talwar

By DAVID CRUZ

Developers of the Kingsbridge National Ice Center (KNIC) have filed a lawsuit against the New York City Economic Development Corporation (NYCEDC), the city’s real estate arm that had given developers another month to demonstrate it had enough capital to proceed with the project at the city-owned property, the Norwood News has learned. The development could signal further delay, and perhaps endanger the project altogether.

SEE THE SUIT: KNIC V. CITY OF NEW YORK

In a 35-page summons and complaint filed in Bronx Supreme Court on April 12, the lawsuit alleges the city had breached a contract and “have deliberately delayed the progress of the Kingsbridge Armory redevelopment [project].”

The suit alleges that the NYCEDC had in fact conspired with former principals tied to the project, Jonathan Richter, Jeff Spiritos and Marcos Wignell. KNIC alleges that NYCEDC had looked to purposely have KNIC default on its commitment so it can hand the project to the three individuals. The trio had sued KNIC president Kevin Parker for control of the project, but ultimately lost. An attorney that represented the trio did not return a call.

“It now appears that, while publically pretending to cooperate with KNIC, NYCEDC was secretly working to advance the private interests of the three favored individuals and other nonparty co-conspirators to the detriment of KNIC, the Kingsbridge community, the Bronx, and the City of New York,” read the complaint.

KNIC had been in negotiations with the city to have the NYCEDC release the Armory’s lease from escrow. The project, valued at $350 million, required substantial capital from investors. KNIC secured $30 million in private funding before turning to the state’s Empire State Development Corporation for a construction loan. The state pledged $130 million for the project. As per the terms of an agreement with the NYCEDC, KNIC needed $158 million to have the lease released so it can begin phase one of the project, which included developers building roughly half of the nine-rink, 5,000-seat arena project by August 2018.

“Our clients believe they have satisfied the terms and conditions of the Escrow Agreement and they are ready to move forward with renovation of the armory into an active ice skating facility,” said William A. Brewer III, partner at Brewer, Attorneys & Counselors and lead counsel for KNIC. “The lawsuit seeks delivery of the lease and to address what our clients believe was an ongoing conspiracy to take this project from its rightful owners and put it in the hands of others.”

Brewer continued, “We believe the lawsuit reveals conduct that has not only harmed our client, but also robbed the community of the many benefits of this transformational project.”

But the NYCEDC has long positioned that a pledge committed to the project is not enough, but actual capital. As it stands, the ESD only provided $15 million of the $130 million it had promised to set aside.

The development could place a major dent on the development of the Kingsbridge Armory, which for decades had been the primary location for redevelopment. Found in Kingsbridge Heights, the vacant castle has essentially sat as an empty shell for years. The latest project had long been championed by local elected officials who’ve pegged the project as a game changer for the Bronx. Among its biggest supporters is Bronx Borough President Ruben Diaz Jr.

Should a judge rule in favor of the city, it could completely null the project and start from the beginning. A victory would also null a Community Benefits Agreement hammered out between community stakeholders and KNIC.

In a statement, Anthony Hogrebe, a spokesman for the NYCEDC said, “I can’t comment on any potential litigation. NYCEDC has worked hard to advance and support the Kingsbridge project, and we remain committed to delivering for the people of the Bronx.”

Welcome to the Norwood News, a bi-weekly community newspaper that primarily serves the northwest Bronx communities of Norwood, Bedford Park, Fordham and University Heights. Through our Breaking Bronx blog, we focus on news and information for those neighborhoods, but aim to cover as much Bronx-related news as possible. Founded in 1988 by Mosholu Preservation Corporation, a not-for-profit affiliate of Montefiore Medical Center, the Norwood News began as a monthly and grew to a bi-weekly in 1994. In September 2003 the paper expanded to cover University Heights and now covers all the neighborhoods of Community District 7. The Norwood News exists to foster communication among citizens and organizations and to be a tool for neighborhood development efforts. The Norwood News runs the Bronx Youth Journalism Heard, a journalism training program for Bronx high school students. As you navigate this website, please let us know if you discover any glitches or if you have any suggestions. We’d love to hear from you. You can send e-mails to norwoodnews@norwoodnews.org or call us anytime (718) 324-4998.

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2 thoughts on “EXCLUSIVE: KNIC Files Suit Against City

  1. Frances Mathis

    Greed and power. Politics before humanity compassion forgotten in the need to be in control for selfish reasons. I invite all of you to look into the faces of these children as they put on inline skates for the first time. I see HOPE instead of dis pair . Wake up NYC and be an example for the rest of our hurting declining hopeless country. Frances Mathis, Spartanburg , SC

  2. Ms. I.

    I hope they decide quickly….If a church comes in well then the neighborhood is doomed..Baychester was a great place to live, once all these so called churches opened up it is what it is today….Nobody wants to live there….

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