Photo by Adi Talwar
Vacant Armory purchase price assessed at $17 million, says KNIC
In the last year, progress at the Kingsbridge Armory, which was expected to house a large ice skating complex by next year, has stalled with nary a shovel in the ground.
A lawsuit by developers of the Kingsbridge National Ice Center (KNIC) against the New York City Economic Development Corporation prompted the stall. Attorneys for KNIC have since regrouped with a new tactic to settle the case: an offer to buy the landmark Armory.
In a two-page letter obtained by the Norwood News, KNIC, the developer picked by the city in 2012 to repurpose the Armory into an ice skating center complete with nine rinks and a 5,000-seat arena, explained its latest proposal to NYCEDC can “jumpstart the Armory project so the significant benefits on the community can finally be underway.”
Developers have appraised the market value of the property at $17.6 million. The project’s budget is still projected to cost $350 million, and would not lift the Armory’s landmark status, confining KNIC to only remodel what’s inside the Armory.
“We are confident that EDC appreciates what a generous offer this is, and how an outright purchase simplifies things regarding project development and administration going forward,” wrote William A. Brewer III, lead attorney for KNIC.
By buying the property, KNIC frees itself up from the ongoing court drama with NYCEDC. Since March, the two sides have argued over finances tied to the project. Earlier this year, two state agencies approved a $138 million loan to KNIC so it can begin building the first half of the ice center. The funds came in the form of a loan commitment, which raised red flags for NYCEDC, the city’s realtor, which wanted the full $158 million needed to fully fund the first phase. At present, KNIC has received $15 million from the state. The Empire State Development Corporation (ESD) and Public Authorities Control Board, the two panels that okayed the loan, need to see an active lease before it can disburse the funds, according to KNIC’s attorneys.
According to the KNIC’s escrow-locked lease, a stipulation exists allowing KNIC to purchase the building outright. But that provision is contingent upon the activation of the lease. One of the original terms in the agreement was KNIC paying the city rent of $1 plus a portion of yearly revenue KNIC would produce.
Should the city continue its aggressive stance on keeping the property in its portfolio, it would have to issue another Request for Proposals, putting the property out for bid while adding another layer of delay for development. The RFP could go out to other bidders who may be interested in purchasing the property. It would also have to go through another Uniform Land Use Review Procedure, a process that takes months and involves approvals of the community board, borough president and New York City Council Member whose district covers the property.
Or the NYCEDC may release the lease, activating it and allowing KNIC to purchase the property altogether.
The last time the two sides met in Bronx Supreme Court, presiding judge Ruben Franco told attorneys he was unsure if he could continue hearing the case. Still, both sides have met outside of court to negotiate a way to mutually advance the project. The city has not budged over its position of releasing KNIC’s lease, which remains in escrow.
Anthony Hogrebe, a spokesman for NYCEDC, declined to comment over whether the city would consider KNIC’s proposal because of ongoing litigation.
The proposal hasn’t quite been met with much outright support from legislators who had once swooned over the prospect of an ice center, viewing it as a major game changer for the Bronx.
A spokesperson for Bronx Borough President Ruben Diaz Jr., a booster of the Armory project whose support has toned down over the last year, merely said he would evaluate the proposal if they saw it. The same went for Senator Gustavo Rivera, another strong supporter of the Armory, whose 33rd Senate District overlaps with the Armory, according to his spokesperson.
A spokesperson for Councilman Fernando Cabrera, whose 14th Council District also overlaps with the Armory, declined comment. Cabrera these days has been vocal opponent of the Armory. During his run for the 33rd Senate District currently occupied by Rivera, Cabrera expressed in a televised debate his preference to see the project re-start.
“If [KNIC] cannot come up with the funding…then it should be opened up again,” Cabrera said. “Don’t hold back the community.”
As of press time, it’s been 1,024 days since the New York City Council approved the Armory be turned into an ice center.
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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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This is ridiculous. The city should sell it to them. This is dumb politics. All it does is hold back what would be a good development. Let it go private so it can get done. EDC should sell.
Agreed!
You woul think it would be common sense but apparently that is lacking in this mayor and his teams. If they sell it they make 17 million and get it off their hands. In the off chance that KNIC is not successful (a risk with any private venture) – the city would have still profited by 17 million. As it sits right now NOTHING is being generated for the city. A landmark just sits there. The only thing this mayor seems interested in for The Bronx is to push more low income housing and homeless shelters. I remember hoping my own son would be able to take part in te after school programs KNIC planned to run – at this stage he will be graduating high school before then… That’s if this mayoral administration doesn’t ruin this altogether and ruin opportunity for other children.
No funding with EB-5 Visa money, that would turn the project into a Third World bizarre
This place could be an amazing mall or Chelsea Market type space, or even a mixture of several kinds of functions (aquatic center, ice rink-but-not mega-rink, shopping, and schools are come to mind). Initially neighbors were concerned that the retail mall chain was not going to pay a living wage, but now it’s really not clear that the ice rink is going to either. They should begin the process again, and once again take bids from retail. The neighborhood could use movie theaters and large retail–just consider how pillaged the shelves are at the nearby Target. And selling such a massive building at below market rate is not good for the neighborhood.
Fordham Road and Broadway both are seeing a retail renaissance. Jerome Ave is trying to revive.. What sense would it make add another so close??? As to a movie theater… As a parent I would MUCH prefer KNIC’s proposal to incorporate sports and academic training. It sounds very similar to what is being done at the Cary Leeds Tennis Center. That’s what young people need – not places to watch movies – eat junk food and waste money. They need to learn about investing their money – not throwing it away. Small minded thinking is part of why some communities prosper and others don’t.
Need to get an ECHLor AHL team IN there to make the project profitable
I would rather see the Armoury converted back into a Film and TV studio.
The Armoury DID serve temporarily as a Film Studio, for a few years, maybe 20 years ago, for the film “The Hard Way” with Michael J. Fox, that I worked on for a few months as one of the Camera Assistants, and several other films.
I don’t know why they didn’t keep the Film Studio, and do more construction there, at that time. adding more stages, carpenter shops, prop rooms, offices, dressing rooms, screening rooms, etc., to make it a complete Production Center.
New York is currently enjoying a huge surge in Film and TV production, including TV Commercials and Music Videos, and other types of Production, and more studio space would help continue that surge – MANY New Yorkers work in the Film & TV Industry, both as Crew behind the cameras, and as Actors and Actresses and Dancers, in front of the cameras, and these New Yorkers would be “First Hires” for jobs there, as well as local hires for jobs as drivers, secretaries & office workers, security guards, custodial staff, kitchen staff, electricians, carpenters, painters, etc..
A Film and TV Studio would provide MANY more jobs for New Yorkers, than an Ice Rink would, and would benefit local businesses as well, such as local stores and restaurants, lumber yards, hardware stores, plumbing supply, furniture stores, pharmacies, etc.
The ice rink is/was a terrible idea. I hope the city opens this up for proposals again. The ideas might serve the public and the city better at this point, now that people no longer see the Bronx as a dumping ground for crazy schemes.