Corn Exchange Bank reclaimed by EDC. Photo: Brent Reitter
Corn Exchange failed to perform on three-year rehabilitation clause in deed. After Corn Exchange LLC failed to rehabilitate and restore the landmarked Corn Exchange Bank building to its original state and to establish a non-profit culinary school, the Economic Development Corporation sued to reacquire the property and to eject the Exchange, claiming that it breached a condition in the deed. The Exchange objected, arguing that its failure to rehabilitate and restore was a breach of the deed and that EDC was only entitled to money damages. Justice Judith J. Gische ruled that the provision in the deed was a condition and that failure to perform gave EDC the right to reacquire the premises. 5 CityLand 129 (Sept. 15, 2008).
Subsequently, EDC sought a declaration that it had title to the premises and an order to eject the Exchange because of its failure to meet the deed’s condition. Justice Gische granted EDC’s motion, ruling that it had demonstrated that the Exchange had failed to rehabilitate the building, had been properly notified of the default, and had failed to cure the default. Although the Exchange claimed that it had taken steps to begin rehabilitation, had secured financing, and had spent funds to cure outstanding DOB violations, it failed to show it had the ability to complete construction to cure its default.
EDC v. Corn Exchange LLC, 2009 N.Y. Slip Op. 30225U (N.Y.Cty.Sup.Ct. Jan. 29, 2009).