posted on September 15, 2015 16:15
New York Military Academy has ignored the Town of Cornwall's letter of intent to purchase the NYMA property, and it now appears that NYMA's proposed sale of its property to third-parties is not going forward either. As a result, it appears that NYMA's property will be subject to an auction bid in United States Bankruptcy Court on September 30, 2015 with a minimum bid price of $9,500,000. In the event that the property is not sold at that time, it appears that the bankruptcy court will permit the property to be sold on October 2, 2015 in the mortgage foreclosure proceeding brought by Cornwall Improvement, Inc., which is currently pending in New York State Supreme Court.
On numerous occasions over the past several years, the Town has expressed its interest in obtaining all or part of the NYMA property for municipal uses such as sports fields, open space, municipal offices, etc. Indeed, in order to acquire the property the Town Board has even indicated its willingness to consider leasing back the school buildings to allow the academic use to continue on the land. Notwithstanding the latest developments in bankruptcy court, the Town's interest in obtaining all or part of the NYMA's property continues.
If and when the sale of the NYMA property goes forward, the Town of Cornwall will reach out to the new owner to continue the Town's efforts to acquire the property or a portion thereof for municipal purposes. Further, the Town reserves the right to pursue acquisition of the NYMA property by other available statutory means, including eminent domain proceedings.
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