Introduction to the Kingsbridge Armory Redevelopment Controversy
An explosive new lawsuit claims the city’s decision to award the Kingsbridge Armory redevelopment contract to 8th Regiment Partners LLC was corrupted by political favoritism from the NYC Economic Development Corporation (EDC) and top Bronx officials, including the borough president and her deputy.
Background of the Lawsuit
The lawsuit, filed March 28 in the New York State Supreme Court by Agallas Equities LLC, takes aim at the EDC as the main decision maker for the project that was backed by $215 million in state, city and federal investments. The EDC is a nonprofit public benefit corporation that has worked with the city on major development projects, including the Willets Point Transformation, Brooklyn Marine Terminal, The Bronx Museum and many more.
Allegations of Favoritism
The complaint argues that the EDC did not give fair consideration to Agallas’ proposal to transform the 570,000-gross-square-foot, mostly unused armory. The EDC announced 8th Regiment the winner in early January based on its plan for “El Centro Kingsbridge,” which promised to turn the armory into a multi-use building with sports fields, event space, a workforce development center, and retail and community space, plus 450 units of adjacent affordable housing in the project’s later phase.
Details of the Proposal
But Agallas Equities says its proposal was slated to be the winner — with a press conference scheduled and run-of-show emailed out — only for it to be abruptly pulled in favor of 8th Regiment. The company is seeking to have the contract with 8th Regiment annulled and re-awarded; an injunction to stop the work until the case is resolved; and a judgment stating that EDC violated procurement laws and processes.
Conflict of Interest Allegations
The complaint alleges that throughout the bidding process, the EDC was committed to helping 8th Regiment win and allowed them to revise their proposal post-deadline, an opportunity not given to Agallas. According to the complaint, the EDC said that Agallas did not meet financial requirements, which the company disputed. Agallas also alleges that multiple elements from its own proposal were copied into 8th Regiment’s “inferior” submission and described the decision to award the contract to 8th Regiment as “improper, arbitrary, and unlawful.”
Rendering from Agallas Equities’ proposal to transform the Kingsbridge Armory.
Potential Consequences
If the Kingsbridge project proceeds as is, Agallas would “suffer irreparable harm … including the loss of its intellectual property rights, the deprivation of its opportunity to compete fairly for the contract, and the erosion of public trust in the procurement process,” the complaint said.
Response from 8th Regiment
In a statement sent to the Bronx Times, 8th Regiment didn’t directly address the lawsuit. It said that it took pride in its armory proposal, “a plan that includes many community priorities that were laid out during the public visioning process.” “In line with our long-standing, successful track record executing public-private projects in New York City, we look forward to continuing to work with the Bronx community over the coming months and years to deliver the jobs, housing and economic benefits of this City-supported project.”
Allegations of Political Influence
The suit alleges that local elected officials had undue influence over the awards process. The lawsuit names Bronx Borough President Vanessa Gibson and Deputy Borough President Janet Peguero, in addition to 8th Regiment Partners LLC, which is comprised of Maddd Equities LLC and Joy Construction Corporation, the NYC Economic Development Corporation (EDC) and its CEO, Andrew Kimball, and the City of New York.
Details of the Alleged Conflict of Interest
Manny Tavarez with Agallas Equities maintains that Peguero should not have been involved in the Kingsbridge contract because of her work as a lobbyist for Maddd Equities in 2020 and 2021 and her role on the EDC board of directors. During the procurement process, Peguero’s former firm, Constantinople and Vallone Consulting, continued to lobby the armory decision-makers on behalf of Maddd, Tavarez said in an email to the Bronx Times.
Comments from Involved Parties
Peguero’s inclusion on the armory project was an “extreme conflict of interest,” said Tavarez in an April 1 interview with the Bronx Times. His suit seeks to refer evidence of misconduct by elected officials to local, state and federal law enforcement agencies. “This case exposes how political connections trump merit in New York City development deals,” said the plaintiff’s attorney, Christopher Carrion, in a statement. “We’re sending a clear message that no one is above the law, not developers, not agencies, and certainly not elected officials who abuse their power.”
Response from Borough President
However, Gibson issued a strong statement denying the allegations. She said that while there is always a disappointed losing party in contract bids, there are “no valid claims” involving her office, which was “named merely in an attempt to generate news and attention,” she said in a statement to the Bronx Times. “The redevelopment of the Kingsbridge Armory is a long-overdue investment in the Bronx, promising thousands of jobs, hundreds of affordable housing units and numerous safe community spaces,” said Gibson. “Attempting to obstruct this development for selfish business and political reasons is nothing short of disgraceful.”
Economic Impact
The process for hearing what Bronxites wanted in the massive armory space, which has sat mostly unused since the 1990s, began in 2022. After gathering input from over 4,000 community participants, a working group produced the “Together for Kingsbridge Vision Plan,” which bidders used to inform their plans. Tavarez argued that his company’s proposal met all financial requirements and had a superior plan for programming that aligned with the community’s needs.
Comparison of Proposals
The 8th Regiment proposal is expected to generate $2.6 billion in economic impact over the next 30 years, including the creation of 360 permanent jobs, according to the EDC. Agallas’ proposal, which Tavarez shared with the Bronx Times, was projected to generate $3.3 billion in economic output and create 1,400 permanent jobs.
Screenshot of an email provided by Tavarez, which shows his company was set to be announced the winner for the Kingsbridge redevelopment project in Dec. 2024.
Concept of the Plan
When the NYCEDC issued a Request for Proposals (RFP) in Sept. 2023, it encouraged bidders to use the community-created Vision Plan document to inform their ideas. Several of Agallas Equities’ ideas for the armory were unique, Tavarez said. For instance, as co-founder of the International Salsa Museum, he planned to give it a permanent home within the armory.
Allegations of Idea Theft
He now accuses 8th Regiment of stealing both concepts, among others, and claims the EDC facilitated the other company’s access to Agallas’ proprietary information. A spokesperson for 8th Regiment told the Bronx Times that because bidders were working to comply with the Vision Plan, some overlap of ideas would naturally occur. But as 8th Regiment proceeds with the work, Tavarez has accused them of “poaching” the architectural and rendering firms that worked on Agallas’ proposal and using those companies to implement several of his ideas.
Agallas Equities claims that their rendering (top image) was copied by 8th Regiment (bottom image) after 8th Regiment hired the same architect and rendering firm that worked on Agallas’ proposal.
Conclusion
The lawsuit filed by Agallas Equities against the NYC Economic Development Corporation and 8th Regiment Partners LLC over the Kingsbridge Armory redevelopment contract has brought to light serious allegations of favoritism, political corruption, and conflict of interest. The case highlights the need for transparency and fairness in the procurement process, especially in large-scale development projects that have a significant impact on the community.
FAQs
- Q: What is the Kingsbridge Armory redevelopment project about?
A: The Kingsbridge Armory redevelopment project aims to transform the 570,000-gross-square-foot, mostly unused armory into a multi-use building with sports fields, event space, a workforce development center, and retail and community space, plus 450 units of adjacent affordable housing. - Q: Who are the parties involved in the lawsuit?
A: The parties involved in the lawsuit are Agallas Equities LLC, 8th Regiment Partners LLC, the NYC Economic Development Corporation (EDC), Bronx Borough President Vanessa Gibson, and Deputy Borough President Janet Peguero. - Q: What are the allegations made by Agallas Equities?
A: Agallas Equities alleges that the EDC did not give fair consideration to its proposal, that 8th Regiment was allowed to revise its proposal post-deadline, and that multiple elements from its own proposal were copied into 8th Regiment’s submission. - Q: What is the potential economic impact of the project?
A: The 8th Regiment proposal is expected to generate $2.6 billion in economic impact over the next 30 years, while Agallas’ proposal was projected to generate $3.3 billion in economic output. - Q: What is the next step in the lawsuit?
A: Agallas Equities is seeking to have the contract with 8th Regiment annulled and re-awarded, an injunction to stop the work until the case is resolved, and a judgment stating that EDC violated procurement laws and processes.
