clock menu more-arrow no yes

Filed under:

Stymied Battery Maritime Building redevelopment faces foreclosure

The decades-long project is also the subject of two ongoing lawsuits

The long-delayed redevelopment of the Battery Maritime Building may receive yet another setback. Already facing two lawsuits, the developer behind this project has now been confronted with a possible foreclosure proceeding for failing to pay interest on its loans, Politico reports.

First announced almost a decade ago, plans for this landmarked structure called for the addition of a $150 million hotel, shopping area, a rooftop restaurant, and a restored Great Hall within the existing building.

The developers had to make several revisions to the original plan before the city’s Landmarks Preservation Commission signed off on the project. It wasn’t until 2012 however that developer Dermot Company along with the Poulakakos family signed on to a 99-year-lease on the building from the owner of the site, the city’s Economic Development Corporation.

Superstorm Sandy hit in October, delayed the project further and escalated costs. However it seemed like construction was making some progress last year. It certainly hasn’t been smooth sailing for the project in 2016. In September, the NYC Regional Center, which provided Dermot with a $77 million loan in 2011, sued the developer for failing to pay rent or interest on the loan, according to The Real Deal.

In early November, the EDC followed up by filing its own lawsuit against Dermot for failing to pay rent on the site for over a year. Now, a potential foreclosure proceeding could jeopardize this long-delayed project even further.