Con Ed moves to evict Park51 developers from Lower Manhattan site

New York /
Oct.October 17, 2011 08:52 AM
alternate
text
Soho Properties CEO Sharif El-Gamal, rendering of Park51 community center, and 45 Park Place (building credit: PropertyShark)

Con Edison has ordered Soho Properties CEO Sharif El-Gamal and Park51 developers to pay $1.7 million owed in back rent, the New York Post reported, and threatened to evict the team behind the controversial ‘Ground Zero mosque.’

Con Ed owns a former substation on the western half of the Lower Manhattan property where the developers want to build a community center and rent it out to Park51. Park51 paid $700,000 to lease the substation in 2009, which had a rental rate, set in 1972, of $2,750 per month. But in August, the utility raised the rent, retroactive to July 2008, to $47,437 per month.

Con Ed said it would kick out the developers if they didn’t pay the $1.7 million it owed by Oct. 4, but Park51 principals sued Con Ed to stop the increase and got a temporary court order to prevent eviction. They claim they owe Con Ed just $881,519 and that their monthly rent should be $25,875 going forward.

The disagreement makes it difficult for Park51 to eventually buy the building from ConEd, El-Gamal said, as they originally intended. The developers want to own the building so they can knock it down, along with 45 Park Place next door, and build a $100 million, 15-story Islamic community center. [Post]


Related Articles

arrow_forward_ios
470 Broome Street (Photo via Saltzman Architects, P.C., iStock)
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
546 Broadway and Isaac Chetrit (Google Maps)
Uniqlo finalizes $160M buy of its flagship at 546 Broadway
Uniqlo finalizes $160M buy of its flagship at 546 Broadway
André Balazs and 158 Mercer Street (Getty, Google Maps)
Developer picks up André Balazs’ Soho condo
Developer picks up André Balazs’ Soho condo
President & CEO of Northwood Investors with 520 and 524 Broadway. (Getty, Google Maps)
Northwood buys two Soho buildings for $325M
Northwood buys two Soho buildings for $325M
Joseph Chetrit with 427 and 459 (left) Broadway (Getty, Beyond My Ken/Wikimedia)
Chetrit Group falls behind on Soho portfolio mortgage
Chetrit Group falls behind on Soho portfolio mortgage
A judge declined to issue a temporary restraining order blocking the Soho rezoning. (Getty)
Judge declines to block Soho rezoning; proposal remains on hold
Judge declines to block Soho rezoning; proposal remains on hold
Bella Hadid and 63 Greene Street (Getty, StreetEasy)
Bella Hadid’s $6.5M Soho penthouse finds a buyer
Bella Hadid’s $6.5M Soho penthouse finds a buyer
DHS Commissioner Steven Banks. (Getty, Google Maps)
City to open Soho homeless shelter
City to open Soho homeless shelter
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...