East Irondequoit School Board votes to impose penalty on Medley Center developer

Posted at: 11/19/2012 10:38 PM
Updated at: 11/19/2012 11:47 PM
By: Lynette Adams

The school board in East Irondequoit votes to impose a penalty on the developer of the Medley Centre project.

The board says Scott Congel will now owe an additional $800,000 this January. This comes on the same day that News10NBC learned there are talks to bring the Rochester Broadway Theatre League to the Medley Centre. The Rochester Broadway Theatre League will make an official announcement Tuesday.

The deputy superintendent told the school board tonight, The district has no choice. It has to abide by the provisions of the pilot agreement, and according to that contract, John Abbott says the developer hasn't completed enough work at The Medley Centre.

The vote took just a few seconds. The East Irondequoit School Board approved a resolution to charge the owner of the Medley Centre an extra payment this year. That payment will cost Scott Congel an extra $827,722. That's one top of the regular pilot payment of $370,000. All of it due in January.

Jon Abbott, East Irondequoit School District Deputy Superintendent said, “We've seen for some time now that  there's been a lack of construction.  So it's not exactly a surprise that we are where we are. We've kept in contact with the developer,  he's in town on a regular basis, we believe he's working hard on this but the pilot agreement doesn't allow us latitude to say "your working hard on this therefor the supplemental payment won't be enforced."

John Abbott is the Deputy Superintendent for the East Irondequoit School District. He says this payment is a penalty placed in the 2009 pilot agreement to keep the medley center project on track. It requires that within 24 months, or two years, the developer had to invest $90 million in the project. Abbott says Congel missed the mark by about $25 million.

Abbott said, “Because that's a legal agreement, an enforceable agreement we have a responsibility to the taxpayers to enforce it.”

The owner promised to reinvent this 20 year old  mall into a lifestyle center, bringing in stores, restaurants and a hotel. And not even news today the Rochester Broadway Theater League is in talks to build its performing arts center here or the town's excitement about it could change that.

Mary Joyce D'Aurizio, Irondequoit Supervisor, said, “The operations of the RBTL was a perfect fit at the Medley Centre.”

Abbott said, “Positive announcements are a good thing,  but as I said in there, the expectation was that there would be announcements of major tenants. The whole idea is this is a high end development. There should be numerous high end tenants, but this is the first of them.”

We reached Scott Congel by phone tonight. He said he would have a comment in a few days. Abbott says he spoke with the developer about the supplemental payment and there was no indication he would not be able to make this payment in January.