Condo owners vote to sell fire-destroyed Grandview property
Times Herald-Record
By Leonard Sparks
09 August 2017
LOCH SHELDRAKE – Owners of condominium units at the fire-destroyed
Grandview Palace complex in Loch Sheldrake voted at an annual meeting
on Sunday to sell the property while a court battle continues over $30
million in insurance proceeds.
If sold “as is,” the
property’s value would be zero
An appraiser valued the 99-acre property at $900,000 if cleared of
damaged structures, debris and asbestos. If sold “as is,” the
property’s value would be zero because the costs to clear the land
could be as high as $4 million, according to Grandview’s Board of
Managers.
“At this time, the Board of Managers will proceed with searching for a
potential buyer for the property,” according to a notice posted at “GVP
Justice,” a website set up by Grandview’s board. “If a buyer is found,
the Board of Managers will proceed with seeking a partition action from
the New York State Supreme Court to allow for the sale of the property
as one parcel and the distribution of assets from that sale amongst the
unit owners.”
A massive fire on April 14, 2012, destroyed most of the complex, which
used to be the Borscht Belt-era Brown’s Hotel before being converted to
condominiums.
An estimated 65 fire companies and more than 200 firefighters took part
in extinguishing the fire, which started in the afternoon and spread
rapidly as residents who escaped the complex’s buildings watched from
across Route 52.
Nine buildings were destroyed at the 396-unit complex.
fire-safety and building-code violations, including non-working
sprinklers and alarms ... town officials threatened to condemn the property
One month before the fire, Grandview’s managers agreed to correct
fire-safety and building-code violations, including non-working
sprinklers and alarms. The agreement ended a standoff in which
Fallsburg town officials threatened to condemn the property.
Less than four months after the fire, the Illinois Union and the Great American insurance companies sued Grandview.
They accused the board of making false statements on their application
for coverage, mainly by attesting that the complex had no existing code
violations and that each building was fully protected by automatic
sprinkler systems.
In December, New York County Supreme Court Judge Jeffrey Oing refused
requests from both sides to rule in their favor despite the absence of
sprinklers in some buildings and in the boiler room where the fire is
believed to have started.
Issues of fact also exist as to whether Illinois Union had knowledge
of the defects in sprinkler coverage prior to the fire and/or should
have inspected the property to ascertain its condition
“Issues of fact also exist as to whether Illinois Union had knowledge
of the defects in sprinkler coverage prior to the fire and/or should
have inspected the property to ascertain its condition,” Oing ruled.
The insurers are appealing the ruling.
top
contents
chapter
previous
next