Developer of New York Mills condos deliquent on EDA loan
NEW YORK MILLS -- The developer who purchased and converted the old New York Mills hospital into condominiums is under pressure by the city for payment on a delinquent loan used to finance the project.
City attorney Dennis Happel sent a letter to Steve Campbell of New York Mills partners III regarding past due payment on an Economic Development Authority loan totaling $126,466.
In an effort to put pressure for payment on the developer, Happel sent the latest letter on behalf of the city. Happel had Previously written Campbell on April 29, 2008.
"At that time, you had told me that the condominium project had been sold and that you intended to pay off the EDA loan, all interest and penalties incurred thereon, and the balance due on the pledge for the land sale on or before Aug. 1, 2008," this according to the letter presented at Tuesday's city council meeting.
The EDA has not received any payments on the loan since Nov. 1, 2007, outside of an $800 interest payment made on Dec. 5, 2008, and the only payment on the pledge was received in February, 2007.
According to Happel's letter, as of Nov. 1 the amount due to the EDA is $126,466. This amount is comprised of the principal balance of $98,630.58, unpaid interest in the amount of $7,035.68, and late fees totaling $20,800.15.
The balance due on the pledge is $27,000.
The EDA indicated it is their understanding that all of the condominium units are now occupied by owners and renters, therefore it would seem reasonable to start making payments.
The matter concerning the delinquent loan has come up in previous council meetings over the past year and Happel has reported conversations with Campbell, where the developer indicated he was working on a deal with new investors.
Collection proceedings have not yet gone beyond pressure from the city attorney. Council members have commented in the past they would like Happel to handle the matter directly with Campbell since the banks are paid before the city, in terms of the order of legal collection proceedings.