When Medley Centre's developer missed an investment milestone earlier this year, it was clear that he'd have to pay a penalty.
Last night, the East Irondequoit school board provided some insight into what that penalty could be. According to media reports, board members voted to asses the developer, a firm owned by Scott Congel, a penalty of approximately $4 million. The penalty, just like the investment milestone that triggered it, are provided for in a tax agreement between Congel, the school district, the Town of Irondequoit, and the Monroe County Industrial Development Agency.
Media reports also say that Congel's been trying to get the district to agree to a smaller, $2 million payment instead, and that he wants the board to agree to renegotiate the terms of the agreement. But the board doesn't appear likely to accept his offer.
Congel will have to pay the penalty, along with his yearly tax-agreement payment, in January. If he doesn't pay the penalty, the district could move to cancel the incentive agreement, a step that would require court action and probably turn into a legal battle. But district officials have said they aren't sure what their next move will be. Congel has made each of the yearly payments under the tax-incentive agreement.