On Tuesday, Gossips published a statement from Mayor Joseph Ferris which was received before there was time to report on the Common Council meeting that provoked the mayor's response. Today, we catch up and report on the meeting. But first, some history.
In January 2023, the Common Council passed a resolution approving the sale of two parcels owned by the City of Hudson to Kearney Realty & Development. The two parcels were the vacant lot at State and North Fourth streets, currently being used as a parking lot by Columbia County, and the land on Mill Street that had been and still is a playing field and was generally considered to be part of Charles Williams Park. The resolution was accompanied by an agreement of sale, but the actual agreement of sale was not executed until May 2o23.
The actual agreement of sale, which is essentially the same as the one attached to the resolution presented to the Common Council, was signed by Mayor Kamal Johnson for the City of Hudson and Sean Kearney for Kearney Realty & Development and dated May 3, 2023. That agreement, like the agreement attached to the resolution, set the closing "on or before the date which is two years after the full execution of this Agreement." The agreement stipulated that the purchaser could postpone the closing for up to two six-month periods. The two years and the two six-month extensions were over on May 3, 2026.
Councilmember Henry Haddad (First Ward) brought up another issue: the selling price. Haddad cited $450,000 as the price; it is actually $420,000 for both parcels--Mill Street and State Street. Haddad called the deal "bad for us and bad for Mill Street" and asserted "to continue this is a slap in the face to taxpayers." Councilmember Jennifer Belton (Fourth Ward) mused, making reference to the three projects the City had chosen Kearney to pursue, "If two of them aren't happening, and the worst one might happen. . . ."
It was in response to this that Ferris issued this statement:
The contract closing date was not extended. The amendment simply clarified the current state of the contract and provided the closing will occur pending the Court's Article 78 determination.
The City of Hudson cannot unilaterally cancel the contract. If we were to do so, Kearney Group would have a breach of contract claim against the City and could seek damages for the City's termination.
Corporation Counsel [City Attorney] advised me that since the City was already in contract with Kearney Group, is a named party in the Article 78 proceeding, and has a legal obligation to perform under the contract until such time as a Court rules otherwise, it was necessary to execute the amendment to maintain the status quo.
Much of this was discussed at a March 6 meeting attended by myself, Council President Morris, Mill Street petitioners, and the respective legal representatives.
The Council can debate prior resolutions of support but as this city's mayor, my responsibility is to protect the city and at this point in the Article 78 process, that means doing everything in my power to avoid unnecessary and expensive legal actions whose cost will be borne by the taxpayers.
It will be recalled that last year, before he was elected, Ferris called on the Planning Board to deny approval to the Mill Street Lofts project. Ferris said at that time, "There is no such thing as a good project in a floodplain. Let's build a future that's safe, equitable, and forward-thinking. Approve the Bliss Towers redevelopment and reject the Mill Street Lofts as it stands." Despite significant opposition from elected officials, neighborhood residents, and the public in general, the Planning Board granted site plan approval to the project in May 2025.
COPYRIGHT 2026 CAROLE OSTERINK

I read the contract attached to the resolution. The Mill Street folks are correct: it terminated per its terms on 5/3/26. Any attempt to resurrect it would require Council approval. The Mayor's doublespeak notwithstanding, he and Kearny are trying to prop up a dead horse. And the "City can't unilaterally terminate a contract" is more of the same: doublespeak. What he should have said is "the mayor can't unilaterally bind the City to this contract, I need the Council's approval."
ReplyDeleteFerris said this week: "The contract closing date was not extended. The amendment simply clarified the current state of the contract and provided the closing will occur pending the Court's Article 78 determination."
ReplyDeleteOperative word = clarified.
But the actual "First Amendment" [Actual document title], now in the public record, says:
- "Section 8 of the Purchase Contract is hereby amended in its entirety"
1. How is the wholesale swapping out of an entire section of a contract, changing a key economic term (time) from limited (1 year) to essentially unlimited, a "clarification"?
2. Why would Andy Howard (City Attorney) advise this clear violation of the City Charter?
3. Would anyone ever have known about this if one Mill Street resident did not happen to be a top rate Adjunct Law Professor in... checks notes... PROPERTY LAW, and asked the Common Council at an unrelated public meeting.
4. For all the lawyers out there, can a municipality extend a contract that has ALREADY expired without legislative branch approval?
5. All remedies and reasonable paths lead back to the Common Council (who could have extended the contract by vote, added this very section 8 Amendment etc.) lawfully.
The choice to bypass the council was not forced, it was a choice.
6. Legal mess aside (hello City Charter update).
What changed in Mayor Ferris' mind and beliefs to go from "reject the Mill Street Lofts" because "(p)utting new homes atop a flood basin in the middle of a floodplain is not just shortsighted—it’s dangerous."
Source of quote: https://www.millstreetneighbors.org
to
Why don't I quietly sign an extension with dubious or no legal authority, not mention it to the Common Council (thereby inform the residents of Hudson) for a vote (Amendment was signed May 3rd, 2 months after the meeting with all parties),
and only then, when the contract comes to public light, email a comment to Gossips.
Jack Hornickel is Hudson's Erin Brockovich.
This issue has the potential of becoming another Colarusso legal mess, or Joe's version of Kamal's still undisclosed Galvan rent contract.
What happens now?
p.s. JF - it seems that Whitbeck Benedict & Smith LLP drafted the original contract?
Imagine if Mr Howard had drafted it...
It's a perplexing situation for the mayor to find himself in, I think. Either the contract terminated due to failure of an essential term (closing by a particular date) or the contract is still in place (but not validly amended) and the purchaser has breached by not being able to close by the final date. In this latter scenario, the default provisions of Section 19 of the agreement control and 2 things happen. First, the deal is dead and the project no one wants (except Kearny and apparently now the mayor) doesn't get built. Second, the City gets to keep the down payment as liquidated damages. True, it's only $10k which won't fix our budget woes -- but it won't hurt either. Of course, the worst case scenario is an argument that the parties could revive a breached contract by mutual agreement finds a sympathetic ear and the project gets built. But that relies on a court finding that the Council didn't mean what it said when it agreed to the closing date language.
ReplyDelete