The Real Deal New York

Brooklyn Health Partners hangs on to Cobble Hill hospital

To move forward, developer partnership must prove it has $250M
May 09, 2014 03:35PM

UPDATED, 6:00 p.m., May 9: Brooklyn Health Partners is back in the saddle as the developer to overhaul Long Island City Hospital — provided the company can prove it has the $250 million it pledged to purchase the site.

The Stipulation Followed A Court hearing Thursday, convened after the state rejected Brooklyn Health Partners Development Group, a partnership that includes Merrell Schexnydre and Chaim Miller, as the team to redevelop the beleaguered medical facility. Judge Johnny Lee Baynes ordered the state to deposit the $25 million check the company gave it as a down payment, and asked BHP to bring a letter of credit showing it has the rest of the funds.

Brooklyn Health Partners deposited $25 million with the Brooklyn County Clerk’s Office today, according to sources. The Real Deal obtained a copy of the deposit slip, visible below.

“Brooklyn Health Partners only wanted the opportunity to perform, and on Tuesday we will perform,” Donnette Dunbar, spokesperson for the company, told the Brooklyn Paper.

State lawyers wanted to see $600 million in financing from the developer, saying the company hasn’t come up with a capable team to keep medical services afloat after the facility closes on May 22. They also argued that the second-rank bidder, the Peebles Corporation, is more promising. [Brooklyn Paper]Julie Strickland