Failed Bidder Sues Over Kingsbridge Armory Redevelopment

A losing bidder for the Kingsbridge Armory redevelopment is gearing up for a battle.

Agallas Equities filed a lawsuit in state court, demanding a judge annul the contract that gave the Bronx site to Joy Construction and Maddd Equities, Crain’s reported. The suit was filed two months after the city’s Economic Development Corporation picked the Joy and Maddd venture as the winning bidder to redevelop the site.

Agallas and its leader, Manuel Tavarez, allege that the developer’s proposal was almost chosen, presenting a drafted press release in support of the case. Partners in Agallas’ bid — including the McKissack Group, Exact Capital Group and JV Construction & Consulting — have not joined the lawsuit.

The lawsuit claims the EDC was tainted by favoritism and political influence. Agallas also alleges the Maddd/Joy team was given access to Agallas’ proposal and borrowed elements from the plan, pushing that proposal over the finish line.

“The procurement process conducted by EDC was arbitrary and capricious, and tainted by political influence, conflicts of interests, procedural irregularities, and the misappropriation of Petitioner’s intellectual property in their proprietary proposal,” the lawsuit reads.

Agallas may have another problem, which it acknowledges in its complaint. The developer said it wasn’t able to put down the $2.5 million security deposit, $250,000 administrative fee and $200,000 environmental consultant fee required in the bidding, which the EDC used to reject the bid.

“After a rigorous evaluation of all proposals, NYCEDC selected El Centro Kingsbridge’s proposal, which is consistent with the values of the Kingsbridge Vision Plan and the requirements of the RFP,” an EDC spokesperson said in a statement.

A spokesperson for the winning bid put out its own statement, saying it was “proud of the restorative plan we have put forward for the historic Kingsbridge Armory — a plan that includes many community priorities that were laid out during the public visioning process.”

The $600 million redevelopment plan from Maddd and Joy includes event space, sports fields, a workforce development education center, and eventually, 450 housing units.

Agallas’ proposal, meanwhile, initially included community space, 275 units of housing, a four-star hotel, an “International Salsa Museum” and sports fields, which was later replaced with an entertainment venue. It allegedly signed a term sheet in August.

— Holden Walter-Warner