
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)