Members of the Long Beach City Council dismissed a $ 105 million lawsuit against the city by a former developer on Tuesday night, ending a decades-long stalemate for the construction of oceanfront condos and apartments. approved.
IStar Inc, the developer of Manhattan. The city’s settlement with the city dismisses iStar’s proceedings and gives Engel Burman, the new developer and future owner of the Superblock property, the $ 2.5 million credit that iStar has already paid for construction.
Members of the Long Beach City Council have also completed more than $ 3 million in sewerage and water improvements with Engelberman and an additional $ 425,000 to cover the city’s onsite rainwater requirements from Nassau County. We have reached an agreement to pay.
“If there’s one thing people are talking about, it’s going to eliminate the $ 100 million lawsuit against the city,” said John Bend, chairman of the Long Beach City Council. “Currently, all men, women and children in the city are involved in a $ 100 million proceeding, or a $ 3,000 proceeding if this proceeding is against us. This is settled free of charge to taxpayers. We may dodge big bullets here. “
City officials said the agreement could not be publicly disclosed until it was ratified and approved by the city council. While waiting for the settlement, the city applied to the Supreme Court of Nassau to dismiss the proceedings.
iStar’s Jericho lawyer David Heymann said he couldn’t disclose the terms of the sale, but said he expected the sale of the property to Engel Burman to be completed this spring through a settlement.
The project has been involved in various proceedings with various developers over the past 40 years while the devastated grassy land facing the promenade is open.
The proceedings by iStar were filed in 2018 seeking damages due to loss of revenue and tax up to $ 129 million to build two 15-story towers and 522 oceanfront apartments through the Nasso County Industrial Development Agency. He accused the city of not supporting the deduction bid. Promenade.
The Long Beach Zoning Referees revoked the iStar building permit three years ago because the developers couldn’t get all the permits and start construction within the first year.
Uniondale developer Engelberman has signed a deal with iStar to purchase six acres of land between Riverside and Long Beach Boulevard.
Engel Burman plans to build a $ 369 million project that includes two 9-story condominium buildings and one 10-story apartment building, with 438 units, 6,500 square feet of promenade-level retailers and restaurants. there is. The first two levels of the project will include parking spaces for 1,100 cars.
Last year, Nassau County IDA approved a $ 49 million tax deduction for Engelberman over the next 25 years.
The settlement requires iStar to transfer the $ 2.5 million it invested in construction costs for the project to Engelberman.
Engelberman and city officials said they were hoping to start construction by this summer.
“The proceedings are behind everyone, Engel Berman is ready to build a project,” said Robert Sporzino, an outside lawyer for the city. “It takes three to four months before you can see the shovel on the ground.”
Super block payment
The $ 105 million proceedings by developer iStar Inc are closed.
$ 2.5 million credit for construction costs given to future developer Engelbermann
$ 3 million to improve sewerage
Construction starts this summer