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Record staffers bring you information on the comings and goings of New York's Collar City.

Wednesday, December 17, 2008

River Triangle issues in court again

The city filed a federal lawsuit in U.S. District Court against the River Triangle Company on Nov. 24 demanding a judgment which would direct the company to comply with a "full and just independent accounting of all moneys received and disbursed" by the company over the last 20 years in relation to their ownership of the Dauchy and River Triangle buildings on River Street.

The lawsuit also called for the company to pay whatever sums appear to be owed to the city after the financial audit is completed.
Sections of the court document also noted that the company could owe up to $8.4 million to the city from a Urban Action Development Grant, a Section 108 loan from the U.S. Department of Housing and Urban Development, and additional mortgage fees.

The document also specifically alleged that the RTC had not used its best efforts to lease space in the available buildings and denied leases for potential tenants in light of the fact that the city had agreed to pay loan payments to HUD if the company's cash flow was lower than their semi-annual payment amounts.

To date, the city has paid roughly $5 million for the majority of the RTC's payments through federal Community Development Block Grant funds.

Mark Simmons, a principal partner of the RTC, declined to comment on the matter because he said that had not yet seen the lawsuit and had no knowledge of its contents.

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