Hours before the Finance Committee is due to discuss whether or not the City, given the revenue realized from the auction on June 1, still needs to sell the Dunn warehouse on the waterfront and the vacant lot at Fourth and State streets in order to close a gap in the 2013 budget, Gossips has received word that Galvan Partners, for reasons still unknown, does not intend to go through with the purchase of 405 Warren Street. Rumor has it that some people in city government knew about this a week ago, but the city treasurer Eileen Halloran learned of it only this morning.
Galvan's winning bid of $354,000 for 405 Warren Street represented a big part of the $425,000 in unanticipated revenue that some aldermen were hoping could prevent the sale at auction of the two City-owned properties, which have been identified as key properties in the development of the waterfront and the revitalization of the north side of Hudson. In the past, Galvan Partners have expressed interest in buying both properties: the Dunn warehouse and the lot at Fourth and State streets. In December 2010, Galvan Partners, then calling themselves Warren Street Partners, offered the City $250,000 for the Dunn warehouse and later had a change of heart. In June 2012, Galvan offered the City $150,000 for the lot at Fourth and State and apparently had second thoughts about that, too. The City recently had appraisals done on the two properties which estimated the value of the Dunn warehouse at $335,000 and the value of the vacant lot at $72,000.
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