A Bronx judge presiding over three of four intertwining cases linked to the Kingsbridge National Ice Center (KNIC), proposed to city lawyers it allow the ice center’s lease be freed from escrow “forthwith” until next February so it can raise funds needed to begin the long-awaited project.

But Judge Ruben Franco of Bronx Supreme Court, blatantly nudging to advance the $350 million project, warned KNIC it would have to relinquish the lease if it doesn’t obtain the $138 million needed to proceed with the project’s first phase. “All deals are off,” said Judge Franco.

The recommendation bore similarities to a proposal outlined by both KNIC and New York City Deputy Mayor Alicia Glen in April. The former recommendation was praised by local elected officials.

The two sides met June 9 after a one-week postponement. They were initially in court to report back on a letter they had sent to the state asking for written proof it’s ready to give a $138 million construction loan to KNIC, which would build the ice center inside the Kingsbridge Armory. The state has yet to respond.

The judge’s recommendation followed an hour of arguments, rebuttals and some heated exchanges between both sides. At issue is whether KNIC has the required funds necessary for the New York City Economic Development Corporation (NYCEDC), which owns the armory, to confidently give ice center developers the lease. KNIC has long argued it has financial commitments from the state, specifically the Empire State Development corporation (ESD) and Public Authorities Control Board (PACB) two panels that agreed to offer KNIC the full loan needed for the project’s first phase. KNIC so far has $35 million–$15 million through the state loan and another $20 million in private funds.

By having a lease released from escrow, KNIC can proceed with obtaining the full construction loan ESD and PACB, and perhaps a variety of mortgage loaners. To receive a state loan, KNIC needs to show the state it has the lease. It’s a requirement that could prove attractive to other potential lenders should KNIC decide to look beyond the state.

Judge Franco’s proposal still needs approvals from the NYCEDC and KNIC’s board of directors. Both sides are expected to return to court on June 23 to tell a judge whether it would approve or reject the terms.

Hoping to see the proposal accepted is the Northwest Bronx Community & Clergy Coalition, which helped draft a Community Benefits Agreement. It it ready for contingencies. In a statement, the group said it “expects to be at the table as a new development plan for the Kingsbridge Armory is discussed.” It did urge elected officials to “work together to see that this project will fulfill its promise.”

If this recommendation be approved by both sides, work cannot start until all full funding is made available. The first phase involves building four of the nine Olympic-size rinks within the cavernous armory.