The collapse of Monarch’s deal forced the developer to “hastily” enter into an alternative transaction with JMB Capital Partners LLC, which had been funding the bankruptcy case, Monday’s lawsuit said. Among the issues the Port identified were elevators that it said weren’t in compliance with fire and safety regulations, an allegation the developer said was false and not substantiated by an engineering firm it hired to check the elevators. But Monarch backed out after the Port Authority, which owns the bus station, demanded the buyer assume all outstanding liabilities under the ground lease and put $17 million into escrow for other problems at the property. The development consortium, George Washington Bridge Bus Station Development Venture LLC, filed for chapter 11 in October 2019 amid cost overruns at the bus station overhaul and a dispute with contractorĪlthough the Covid-19 pandemic prolonged the bankruptcy, the developer struck a deal worth $100 million earlier this year with Monarch Alternative Capital LP, which agreed to assume the $72 million in debt funded through the EB-5 program.
Funding to redevelop the bus station came through the EB-5 Immigrant investor program, which provides green cards to foreigners who invest $500,000 in certain qualified U.S.
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