The Redevelopment Agency this month declared Dornoch Holdings in default of its redevelopment agreements on The Westbury and The Savoy, which has entered the foreclosure process with Wachovia Bank/Wells Fargo for failure to repay construction financing.
The Savoy, designated as Dornoch I, was planned as 36-unit condo complex at the corner of Main and Monroe streets (Block 320, Lots, 1-4) and a redevelopment agreement was entered into in September 2005. Construction came to a halt in summer 2008 and the site remains much the same as it did then: some aspects of a foundation, along with a few steel beams that were erected in one corner. The project was to be completed in three years, according to the agreement. Capodagli Property Company, which built the 88-unit Meridia Grand on East Grand Avenue within about a year, has expressed interest in acquiring The Savoy property.
The Westbury was designated as Dornoch II and was to feature about 140 residential units, along with a parking component, and 40,000 square feet of retail space across the street on Main Street (Block 318, 1-11, 18 and 23). The redevelopment agreement was entered into in March 2006, calling for the development to be constructed within two years. Today, the site is an interim parking lot adjacent to Lot B leased by the Parking Authority.
The next step is to formally notice the Hillside-based developer that they are in default and they will have 60 to 90 days to remedy the defaults. If they fail to remedy, the agreements are terminated, according to Redevelopment Agency attorney Frank Regan, and the agency can determine what steps it wants to take to facilitate redevelopment of the properties. Any redeveloper would have to come before the agency first.
The Rail House 1449 was featured in today’s The Wall Street Journal Lunchbox, which appears daily on Page 2 of the Greater New York section. The five-paragraph brief includes some items featured on the lunch menu, which The Rail House started serving last month.
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