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The local impact of the meltdown in the banking industry is not quite over. The Bank of Smithtown in Long Island is in FDIC receivership and its woes are making it difficult for Seligson Properties, developer of Waypointe, to pay its delinquent property taxes, according to spokesperson Jeffery Kaplan. The money to pay the taxes for Loehmann's Plaza sits in the bank's escrow account."We're still on the hook for the taxes," Kaplan said, "But the escrow situation has proven to be complicated." Smithtown is also foreclosing on some of the properties within the Waypointe project.
Loehmann's Plaza is home to off-price fashion retailer Loehmann's, The Gap, Bull Head Deli and a Bikram Yoga Studio. Norwalk's director of finance,Tom Hamilton, says that the taxes have been outstanding since 2008. Currently, Seligson owes about $518,000. Lisa Biagiarelli, City Tax Collector, says her office has sent two delinquent notices already, including a notice of intent to put a lien on Loehmann's Plaza for a proposed tax sale on July 19.
Seligson is the City's designated developer under an agreement with the City of Norwalk and the Norwalk Redevelopment Agency. Right now, Waypointe is on hold, as Seligson tries to make a deal with its lenders and investors to recapitalize the project. Waypointe was expected to bring significant new tax revenues to the city--but not if the property is on the rocks.
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