Monday, November 2, 2015

Medley spared again; auction called off

Posted By on Mon, Nov 2, 2015 at 4:24 PM

The auction of Irondequoit's Medley Centre, scheduled for later this month, has been called off. 

The dead mall's owner, Bersin Properties, owed Monroe County $1.2 million in property taxes from 2013, and the county was set to sell off the property at a November 10 tax-foreclosure auction. But Nomura Capital and Credit, the company that once loaned Bersin money to redevelop the mall, paid the debt on Friday.

Bersin, which is led by developer Scott Congel, is suing Nomura over claims that the lender inappropriately withdrew promised financing for the project, and earlier this year, Nomura filed to foreclose on the Medley property. The bank advanced Bersin $44 million and holds a mortgage lien on the property, but it probably would have lost out on some or all of the money it’s owed if the county auctioned the property.

By paying the tax debt, Nomura is basically protecting its stake in the Medley site.

Bersin is also involved in dueling lawsuits with the Monroe County Industrial Development Agency, Monroe County, Irondequoit, and the East Irondequoit school district over a tax-incentive agreement. The governments say that Bersin violated the terms of the agreement and they want him to pay the back taxes. Bersin’s countersuit says that the agreement — which Congel signed — is unenforceable. The cases are pending.

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