Judge nudges parties in Cobble Hill hospital dispute together

SUNY, Brooklyn Health Partners to continue talks over Long Island College Hospital

From left: Merrell Schexnydre, Long Island College Hospital and Judge Johnny Lee Baynes
From left: Merrell Schexnydre, Long Island College Hospital and Judge Johnny Lee Baynes

A Brooklyn judge today urged the two sides negotiating over a proposal to redevelop the Long Island College Hospital campus in Cobble Hill to continue discussions, even as sources said one party, the State University of New York, wanted to terminate them.

The decision keeps alive the hopes of the winning bidder for the redevelopment, Brooklyn Health Partners Development Group. The group earned the highest number of points in a bidding process, and offered $250 million for the site.

SUNY as well as Mayor Bill de Blasio suggested Brooklyn Health should be passed over because it is not capable of perfoming, and others should be considered.

Brooklyn Health, led by Merrell Schexnydre in partnership with an investment group led by Brooklyn real estate developer Chaim “Harry” Miller, filed a lawsuit yesterday to prevent SUNY from halting negotiations.

The two sides were scheduled to finalize a purchase and sale agreement for the project on Monday.

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At the urging of the Brooklyn State Supreme Court Justice Johnny Lee Baynes, who has been involved in battles over the closure of Long Island College Hospital for more than year, Brooklyn Health today withdrew its lawsuit in exchange for an agreement from SUNY that the school would send them a purchase and sale agreement by Monday, and would continue to negotiate in good faith, sources at the hearing told The Real Deal.

Larry English, a senior vice president with Brooklyn Health, said all the group wants is the opportunity to close the deal on Monday.

“We went into court because SUNY had threatened to stop negotiations and we thought that was inappropriate,” English said.

“We should be given the opportunity to finish the negotiations. We are not looking for special treatment.”

A spokesperson for SUNY did not immediately respond to a request for comment.