Foreclosure proceedings will begin on Carriage City Plaza, a 16-story hotel and condo project that was the centerpiece of redevelopment efforts the past decade. Of the 222 units at Sky View at Carriage City Plaza, 62 units have closed and another 72 leased, leaving 88 units.
The foreclosure process is expected to take 10 to 15 months, according to Redevelopment Agency attorney Frank Regan, who informed commissioners at their meeting last week that Carriage City Properties (CCP) consented to foreclosure.
The bank likely to be only bidder on the loan considering about $50 million remains on the $65-million construction loan, Regan said, and will look to carry out the sale of units with Carriage City continuing to run the site until the sale. Except those units already owned by individuals, the entire building will go into foreclosure, he said, including the hotel and retail space, which make up the first three floors of the site.
The agency has received about $400,000 overall to date, and will receive another $1 million, Regan said. Under the terms of the original redevelopment agreement, the agency was to have received about $10,000 per unit at the time of closing (which would have been about $2.2 million — $10k x 222 units).
Amalgamated Bank paid a portion of water connection fees owed by CCP, about $72,000, at the end of last year. Carriage City also paid $150,000 in spring 2009 as a contribution toward the $1-million East Milton Avenue-Irving Street intersection improvement project, of which Carriage City originally was to be responsible for $368,562.