A State Supreme Court justice ruled today that Bersin Properties, the former owner of Irondequoit’s Medley Centre, owes Monroe County, the Town of Irondequoit, and the East Irondequoit school district approximately $6 million in back tax payments and fees.
The judgment stems from a tax incentive agreement between Bersin Properties and the governments. The company failed to meet an agreed-upon schedule of payments as well as investment, construction, and employment milestones on the Medley project, leading the Monroe County Industrial Development Agency, which administered the agreement, to terminate the pact.
Bersin sued and asked the judge to declare that the provisions in the agreement were invalid and unenforceable, even though the company willingly signed on. Today, Justice Matthew Rosenbaum tossed those claims out.
In response to the lawsuit, the county, town, and school district filed counterclaims seeking back taxes and fees from Bersin. The judge sided with the governments and ordered Bersin Properties to pay up.
County Executive Cheryl Dinolfo — an Irondequoit resident — issued the following statement after Rosenbaum’s ruling:
“Today, Judge Rosenbaum’s ruling makes plain what our community has believed for years: Mr. Congel owes County taxpayers for failing to live up to his agreements and the investments he promised. I hope that Mr. Congel does the right thing and finally pays taxpayers what they are owed. If not, we will pursue every available avenue.
The recent sale of the Medley Centre gives our community new hope that brighter days are ahead for the property. I look forward to working with the new owner, along with local and state leaders, to assist in all reasonable efforts to bring life back to what was a vibrant part of Irondequoit and Monroe County.”
The court battle may not be over just yet, though, since Bersin Properties could appeal the decision. The company, however, already lost ownership of the dead mall. The Monroe County Sheriff’s Office auctioned the property to fulfill another judgement against the developer; former Irondequoit Dodge owner Angelo Ingrassia bought the property for $100,000. (The property has a $40 million-plus mortgage lien on it.)
A copy of Rosenbaum’s decision is attached below.
This article appears in Jan 27 – Feb 2, 2016.
I am afraid this is more of a real problem than we want to believe. First, Bersin, if they lose the appeal can simply file bankruptcy and then the Town and School District not only get nothing, they have spent a ton on legal bills along the way,
Second, there can be two appeals, not just one. First the Appellate Division then potentially the Court of Appeals. The truth is that this can be tied up for a very long time.
Lots of business deals go bad but, sadly, this one is the worst of all scenarios….a business guy hiding behind a corporation with no assets other than the mall..and elected officials and school officials who still do not realize that their actions mean they will never be paid. I wonder if they should have tried to work this out? i think Congel, Bello, and Abbott all lost sight of the finish line…and we are screwed because of them!