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Monday, December 28, 2009

Carousel Center Drama

According to New York Real-Time News, lawsuits between Carousel Center developer Robert Congel and Citigroup are growing, with the latest dispute over $410 million in mortgages on the mall.

Two of the developer’s companies, Carousel Center Co. and Carousel Enterprises Co., filed a lawsuit against Citigroup in New York State Supreme Court over two mortgage loans totaling $410 million on the Carousel Center shopping mall.

The two Carousel companies are also asking the court to order Citigroup to release $7 million to them from a loan reserve account because they have met the cash flow requirements.

Citigroup responded with a lawsuit of its own that alleges that the two Carousel companies have not met the cash flow requirements to extend the loans.

"Regardless who is right and who is wrong, it appears that, in today’s construction economy, the banks are a major factor that should be closely scrutinized," notes Val Tuhari of Construction Advisory Group, "In particular, the ones that been bailed out by this administration."

"Times will eventually get back to normality," Tuhari points out, "and owners have memory as well."

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