The developer hired to build a 91 unit apartment complex in the city of Newburgh is threatening a $31 million lawsuit against the city if city officials are unwilling to participate in mediation.  The dispute is over delays the developer says were caused by officials in an effort to kill the deal.

According to the developer, Mill Street, the city tried to stall and ultimately end the deal.  The company claims the city tried to stop the property from being developed.  Mill Street sent a letter notifying the city of the actions it is taking and indicated it still wants to be paid for the project, even though the city is no longer in support of it.

Mill Street stated it spent over a million dollars getting approval for the project and now it is demanding a mediation session by mid-December.  This would resolve the issue in time to meet a funding deadline from the Homes and Community Renewal organization.  Mandatory mediation was a part of the original contract agreement created by Mill Street and the city.

According to Mills Street’s attorney, “If the Parties are unable to salvage this relationship through mediation, then Mill Street will have no other choice but to pursue a lawsuit against the City to recoup its losses as a result of the City’s illegal actions, as well as seek punitive damages”.

The relationship between Mill Street and the city has deteriorated since 2015 when the project was originally developed.  There are only two council members remaining with the city of the original five member council that participated in the original agreement.