by Bea Peterson
Enough is enough. It appears the hole at Dougherty’s corner will remain just that – a hole. A special meeting of the Hoosick Falls Village Board was held Tuesday evening, April 17, following the Organizational Meeting and Budget Public Hearing. [private]At that time Mayor Matt Monahan reported on a meeting held the previous week with Matt Bickford, representing Alex Koks, Craig Kennedy of AOW Associates, Inc. and two representatives from the Capital Bank. According to the Mayor, Alex Koks is ill. Andra Ericsson, who owns the building on Main Street adjoining the corner lot, will no longer be seeking reimbursement for her portion of work to be done from the Grant, and the bank has decided to pull all funding.
Bank representatives said the loan to Koks was for 18 months, which will be up in November. They don’t believe the building will be completed by that time. Even if it is completed, there is the potential for overruns and not enough funds may remain to furnish the building with appliances, etc. In that case, the Mayor said, the project may not be eligible for the $750,000 provided under the Restore NY Grant. The loan for construction was based on Koks being reimbursed by the Grant. The Mayor said the Grant will only pay a certain amount per square foot, and he believes the construction cost could potentially exceed the amount the Grant will pay.
Monahan said the issue is complicated. For instance, the Capital Bank has liens on some of Koks’ properties. Another property was to be sold to pay the bank closing costs of $46,000. That property was never sold and closing costs were never paid. The bank was willing to continue with the project if the Village would pay the closing costs and make $4,000 a month in interest payments until the Grant funds come through. Then the Village would be second behind the bank to be reimbursed for monies expended. The Village has already supported the project by loaning Koks $25,000 from its Small Business Fund.
Building Could Be Sold
Another hitch is that once the building is finished and the Grant money received, the building can be sold at any time, for any amount. And the plan is to market and sell the building. In addition, the Bank of Bennington has a lien on the corner and on another of Koks’ properties.
Mayor Monahan said he hates to abandon the project for many reasons but, he said, “They told us what they were going to do and they haven’t done it.” He added that he has spent a couple hundred hours of his time working with them on this project.
It was four years ago that Koks purchased the property to build a bed and breakfast. He started by working with LaBerge to find a contractor. Over time there were changes to the plan.
Losing The Grant
Board members were extremely disappointed but voted unanimously not to put any more money into the project. And, if nothing happens with the corner, the Village will essentially lose the $750,000 grant.
The Grant has been in the works for six years and has been re-purposed three times. The Mayor doesn’t believe it can be re-purposed successfully another time.
The Koks’ attorney did not return calls made on Wednesday, and Bickford was not available for comment by press time.
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