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Extension sought for KCG Development purchase contract

The Amsterdam Common Council will vote at a special meeting on Thursday whether to grant a five-month extension to the purchase contract between the city and KCG Development for the former Chalmers property. KCG is proposing to build a $30 million mixed-use development project on the land, incorporating a 130 unit apartment complex and a restaurant/banquet hall facility.

According to Mayor Michael Villa, the primary reason for the extension is the discovery of petroleum contamination approximately 15 feet below the surface of the property. He said the contamination has been reported to the Department of Environmental Conservation (DEC).

“We need to determine what additional next steps are required to close that spill. We’re waiting on DEC guidance on how KCG is to move forward, what they need to do to remedy that,” said Villa.

He said the original source of the contamination is unknown at this time, but he is hopeful the issue will be resolved by March 2019.

The other reason Villa gave is that the city missed the deadline to submit payment in lieu of taxes (PILOT) agreement paperwork for the project to Montgomery County for consideration in October. Villa said the decision will now be pushed back to November.

Villa said that he is looking to wave the requirement for additional deposit funds from KCG for the extension.

The original $300,000 purchase contract was signed in October 2017 and specifies a target closing date of October 2018. KCG paid an initial deposit of $30,000, which is currently being held in an escrow account. The contract gives an option for KCG to extend the closing date by two 90 periods by placing an additional $10,000 deposit for each period.

About Tim Becker

Tim Becker is the owner of AnthemWebsites.com LLC which publishes The Compass. He serves as both editor and a writer.

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