For years, city officials and developers of the Kingsbridge National Ice Center (KNIC) have been on the same page with respect to the impending project at the Kingsbridge Armory: They would like to see an ice center built.
But until recently, the city has raised questions over whether KNIC has the proper financing needed to move forward with construction despite KNIC’s position that it does. KNIC was told to show it has the funding by March 25. But the New York City Economic Development Corporation (NYCEDC), the city’s real estate arm, is not convinced. It’s now given developers another month to show it has $158 million needed to proceed with phase one of the project. The total cost for the completed project is estimated at $348 million.
It’s now set the stage for a showdown between the city and developers, at odds over technicalities and contractual conditions that could jeopardize the project entirely or head to court for a resolution. News on the friction between developers and the city also sheds light on the fragile state of the KNIC project, plagued by delays stemming from an internal legal feud last year. KNIC has kept busy over the last year, obtaining construction permits and searching for more financing.
But just which side one chooses on the matter depends on interpretation.
Funding for phase one of the KNIC project is a stipulation that’s part of a longstanding agreement between the NYCEDC and developers. It involves developers to build five rinks, a parking facility with 400 spots and the 50,000 square feet of community space by a proposed date of August 2018.
Developers turned to the state last year for funding, eventually receiving $15 million of a $138 million loan from the Public Authorities Control Board (PACB) shortly after the Empire State Development agency (ESD) voted to approve the total amount. ESD approves loans to job-producing ventures. At a meeting to approve the loan, officials pegged the KNIC project as “transformative” to the Bronx.
But NYCEDC officials believe the state’s commitment to KNIC is not enough. Its main sticking point lies in KNIC not producing documents showing that total funding by the ESD or PACB was approved.
“NYCEDC offered to extend the deadline for our escrow agreement with KNIC in order to give them additional time to secure the binding financial commitments necessary to move ahead with this project,” said Anthony Hogrebe, a spokesman for the NYCEDC. “We hope they will use the time to build on the $15 million they have already been promised by the State, and look forward to continuing our work with them and with the Kingsbridge community.”
Mark Messier, CEO of KNIC, disputes NYCEDC’s version of events, angry over “comments that confuse the public and misstate the record.
“When [KNIC] advised the EDC that it has satisfied the terms of the escrow agreement, they refused to give us the lease,” said Messier, in a statement. “The EDC then requested another 60 days to resolve this dispute. We granted the EDC only 30 days – in an effort to quickly resolve the issue and prevent any further delays to this transformative project.”
Since February, the two sides have been at loggerheads over the agreement terms. In a letter Messier sent to the NYCEDC in February, Messier challenged the city’s concerns over financing and ostensible support for the project. “Furthermore, it suggests an apparent reluctance by NYCEDC to aid in advancing this historic project, which stands in stark contrast to the NYCEDC acting and participating as a supportive and a cooperative partner in the Armory project as NYCEDC has repeatedly and publicly expressed it is doing,” wrote Messier.
The matter is simple for William A. Brewer III, partner at Brewer, Attorneys & Counselors, and counsel for KNIC, who said in a statement that “Delivery of the lease is all that remains before Kingsbridge can move forward with construction.”
“In the meantime, the Kingsbridge team continues to invest in this project and achieve key milestones in pursuit of the KNIC vision,” he said.
For longtime observers, the rebirth of the Kingsbridge Armory has been one filled with fits and starts. In 2009, a plan by The Related Companies to turn the colossal Armory into an indoor mall fell apart after the company rejected a demand to pay a living wage to workers.
Another plan for a school was in the works in the early 2000s, but also crumbled after the School Construction Authority deemed the landmark inappropriate for students, citing the size of the exterior windows.
The latest project, championed by Bronx lawmakers as a game changer, involves the construction of nine rinks and a 5,000-seat arena.
The biggest supporter is Bronx Borough President Ruben Diaz Jr. At a ceremony for Association for a Better New York, an economic development nonprofit, Diaz stood by developers, citing the state’s financial commitment. “I think they’re ready to go and start the project. Just hand over the keys; give [KNIC] the lease.”
Editor’s Note: As of press time, it has been 843 days since the New York City Council voted to approve the KNIC project to be built at the Armory.