The Real Deal New York

Con Ed sues Extell, alleging developer nearly caused steam explosion at
One Manhattan Square

Con Ed is suing on behalf of customers
April 04, 2017 01:00PM

One Manhattan Square and Gary Barnett

Extell Development allegedly caused millions of dollars in damage to the city’s steam system during construction of One Manhattan Square, according to a new lawsuit against the developer filed in the Manhattan Supreme Court.

Utility company Con Edison is accusing the Gary Barnett-led firm of nearly causing a major steam-main explosion at the site at 250 South Street, the New York Post reported. Con Ed claims it cost $4 million dollars to fix the damaged part of the steam system, and argues that Extell should pay for it.

In the suit, Con Ed contends that Extell was told by its own engineers that excavation work for the development was too close to Con Ed’s underground steam pipes, but went ahead anyway. The digging, according to the suit, caused two joints to leak.

“We understand Con Ed has filed a claim, we deny these allegations and we will respond in court,” Extell said in a statement.

One Manhattan Square will feature 815 units and has a projected sellout of $1.9 billion. Sales at the building launched in November, and according to a recent filings with the Tel Aviv Stock Exchange, the firm has sold the first 100 units for a combined $190 million. [NYP]Miriam Hall