Following the recent news that the would-be developers of the massive Domino Sugar plant on the Williamsburg waterfront were looking to sell the site, there came word that one half of the development team, the Katan Group, had filed suit against the other developer, CPC Resources, alleging financial mismanagement. Now the latest, according to the Real Deal, is that a state Supreme Court judge says she will rule on Katan’s injunction request by May 4th. Here is the very happy legal back-and-forth between the two sides:
“We’re focusing on the fact that they’re taking our ownership interests and giving it away,” Morrison Cohen attorney Y. David Scharf who represents Katan Group, told Judge Eileen Bransten at the hearing. The company also claims it has found a “white knight” investor that would buy the site on the same terms as the proposed CPC sale back to the bank, according to lawyers. But, attorney Mark Walfish of Katsky Korins, representing CPC, launched a blistering array of charges against Katan, saying the injunction would result in a foreclosure against the project. He also said that CPC, as managing member of the entity that controls the project, only has the obligation to consult with Katan, and has the full authority to make final decisions on the project. “There is nothing we are doing that eviscerates their rights,” he told the court.
The Katan Group claims it has had multiple and very high offers from investors looking to buy the site, but that CPC isn’t playing ball with them. Construction on Domino wasn’t supposed to start very soon (if memory serves, perhaps by next year), but the legal squabble and possible sale makes us think the development process is going to take even longer to begin.
Judge to Determine Fate of Domino Sugar Factory Within Month [TRD]
Legal Battle Adds to Domino Development Drama [Brownstoner]
Photo by Loozrboy