City sues developer to recoup property
By BRYAN F. YURCAN

The city of Peekskill is suing a developer for the return of former city-owned property.

The city filed a lawsuit in state Supreme Court in White Plains alleging that CPC Resources Inc. of New York City has failed to build affordable housing units in the time it had promised on 13 North Division St., 921 Diven St., and 922 and 974 Main St.

CPC, meanwhile, said the city has been impeding its progress and plans a countersuit.

Peekskill Mayor John Testa said in a written statement that construction on the properties was supposed to be completed in 13 months but it has been 39 months since the project began.

“The developers consistently failed to meet deadlines and has now demonstrated that it lacks the resources to complete the projects it promised to do,” he said.

CPC received development rights to the properties in April 2004. Other developers have expressed willingness to take on the project, said Testa, but in order for that to happen Peekskill needs the title to the property so it is suing for its return.

“Anyone who has ever done renovations understands that sometimes contractors with excellent reputations simply don’t work out,” said Testa.

The city said a “reverter clause” in CPC’s contract states that if the agreed-upon deadlines were not met, the property would revert back to Peekskill’s ownership.

“CPC does not agree and has ceased cooperating with the city in resolving the current situation, so the city is taking CPC to court,” Testa said.

In a statement released to the press, CPC said it has “worked diligently” to complete the projects but has faced “numerous impediments” from the city. It declined to elaborate.

“We will vigorously defend against this lawsuit in the courtroom and not the press,” the statement reads. “The suit is without merit and our answering papers and counterclaims will speak for themselves.”

 

 

 

 

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