Newburgh Heights Association

Meeting Minutes
Community Center, Lander Street
July 6, 2010, 7pm

Welcome and introduction of agenda items at approximately 7:20pm

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The Newburgh City Council has provided answers to several questions about the Liberty Street School posed by the Newburgh Heights Association:

Q: Has Bluestone Developers, Inc. (Bluestone) met the requirements in section 7 of the LPA and established that it has secured 70% of the total estimated costs of the rehabilitation of the Premises and construction of the project? If so, what is this amount and what is the source of Bluestone’s funding? If not, is the City waiving this requirement for Closing and is this waiver in writing?

A: Bluestone has not demonstrated 70% secured funding for the project. Section 3 of the Letter Amendment to the June 19, 2008 Land Purchase Agreement (LPA), copies enclosed, as attached to Resolution No.: 144-2010 adopted on July 12, 2010, will delete the 70% funding requirement set forth in Section 7 of the Land Purchase Agreement.

Q: What is the impact of the release of asbestos at the school on: (i) the timeline for completion of the project; (ii) the cost of the project; and (iii) Bluestone’s ability to successfully and adequately abate the asbestos?

A: Bluestone will be responsible for all costs of obtaining a licensed asbestos contractor to submit an asbestos survey and to undertake asbestos cleanup, as required by the State Department of Labor. The maximum of 18 months to complete the project, following delivery of the deed, as required under Section 3 of Schedule C of the LPA, will not be extended by the Letter Amendment.

Q: Will the deed still contain the provisions in Schedule C of the LPA, including the requirement that Bluestone rehab the building and bring it in compliance with State, County and Local occupancy standards within 18 months of the date of the deed? Can the City enforce this requirement after title has passed? If not, what are the consequences?

A: Schedule C of the LPA, which survives delivery of the deed, will remain unchanged. The terms and conditions of Schedule C will be incorporated in the deed. The property will revert to the City if the project is not completed within 18 months of delivery of the deed.

Q: Can Bluestone amend the deed after it has title to eliminate all time-line requirements listed in the LPA? If so, what will the City do to ensure that this does not become yet another failed project?

A: Section 3 of Schedule C of the LPA, which will be incorporated in the deed, prohibits Bluestone from deeding the property to another person (or entity) before the project is completed.

Download: Land Purchase Agreement between the City of Newburgh and Bluestone Developers, Inc. (PDF)

CITIES OF PROMISE: 1000 PEACE FLAGS


A City-to-City Community Art Installation

The Bluff @ Bay View Terrace

July 15th 5:30pm – 8:30pm

Cities of Promise: 1000 Peace Flags, sponsored by SUNY Orange, is a temporary community-engaged art installation by Susan Handler Konvit. The youth and residents of Newburgh and Middletown, New York, will be guided through the making of this city-wide exhibit culminating in a burst of 1000 brilliant colored flags in each city with their handwritten words of commitment and inspiration waving proudly outside their homes throughout the neighborhoods.

For more details about this art installation, including a full schedule for additional upcoming events within the City of Newburgh, download the flier (.doc).

City of Newburgh press release (PDF):

Acting City Manager Richard F. Herbek Issues Statement on Senate Approval of City of Newburgh Fiscal Recovery Act

The City of Newburgh Fiscal Recovery Act, which will help restore the City’s financial integrity, has been unanimously approved by the New York State Senate. The bill, S.8367 has moved to the Assembly Ways & Means Committee, where it is designated as A.11558. In order for the bill to be approved by the full Assembly, it must be reported out of the Ways & Means Committee.

At an emergency meeting on Friday, June 25, the City Council, also by unanimous vote, passed a resolution authorizing the submission of a home rule request for this legislation to the State Legislature. The measure will authorize the City of Newburgh to issue bonds to liquidate its deficits, and it will also impose requirements for budgetary operations and fiscal management.

According to Acting City Manager Richard Herbek, the City is currently facing a deficit in excess of $10 million. The City’s bond rating is currently “below investment grade,” which makes its ability to issue bonds at an affordable interest rate extremely difficult.

“Without this legislation, the City will continue to be in dire financial straits. Its operations will be affected on all levels,” he said. “The measure will allow the City to institute deficit financing and will also provide for increased State oversight of City finances.

“We are very grateful for the support of the State Senate, and we are hoping for a favorable outcome as we await the bill to be reported out by the House Ways & Means Committee,” he added. “This legislation is absolutely crucial to the financial recovery and the future fiscal stability of the City of Newburgh.”

The next meeting of the Newburgh Heights Association is scheduled for Tuesday, July 6th, from 7:00–9:00 PM. The meeting will be held in the Heights Community Center, located at 104 S. Lander St.

The agenda will include a status update on the Liberty Street School development, a status update on the City of Newburgh’s Fiscal Recovery Act and financial crisis, and the NHA summer bluff party.

To download a PDF of the flier for the meeting, click here.

PETE SEEGER / If I Had A Hammer: Concert for a House is this Saturday! Tickets are $10 in advance, $15 at the door. Bring your lawn chairs or picnic blanket and come out to celebrate independence day with a true American icon. There will be food, sun, fun, great music and a great cause! (More information here.)

Washington’s Headquarters Park (Washington & Liberty Streets)
Sarturday, July 3rd / 1:00–4:00 PM

Purchase tickets online, at the Habitat Newburgh Office at 125 Washington Street, or at the door at Washington’s Headquarters.