Court battle for Destiny's future
Mon, 15 Jun 2009 21:31:42 GMT —
Destiny USA will face off with Citigroup in State Supreme Court this afternoon. Citigroup has cut off any further loan disbursements to the developers of the Carousel Center expansion. Destiny is taking the bank to court to get the rest of the money needed to complete this phase of the project. Destiny's complaint filed at the County Clerk's Office, calls "Citigroup's misconduct calculated and intentional. The complaint claims the carousel expansion is the first phase of Destiny, an entertainment, retail resort which will create tens of thousands of jobs and attract millions of visitors as well as pump millions into local and state governments. The filing says, "Citigroup's shameful refusal to honor its funding obligation will have catastrophic consequences."
Work at the Carousel Center expansion has all but ground to a halt because of a bitter dispute between Destiny USA and its bank. Contractors have walked off the job in droves. A source close to the project says there were 331 construction workers at the site on May 31st, on Monday, there were around 20. Syracuse Police were called Monday morning when some of the contractors tried to reclaim materials they left behind. A police spokesman says the dispute was resolved.
The source disclosed some contractors have not been paid since April for work they did in February.
In late May, Citigroup cut off funding for the project and refused to release the remaining portion of a $155 million loan. In a statement, Citigroup blamed Destiny for not living up to its share of the funding obligations. The statement adds there are "considerable cost overruns, schedule delays and inability to secure a single lease"... or tenant for the expansion.
Click on the links below for court documents.