The Issue with Mill Street

The extension of the terms of the contract to sell two City-owned parcels to Kearney Realty & Development was a topic of discussion at tonight's Common Council meeting. Council president Margaret Morris read the amendment to the contract, which alters the deadline for closing on the sale from a fixed date to an open-ended one: thirty days after pending litigation is settled in a manner that would allow the sale to go forward. 

There was significant discussion about whether or not the mayor could amend the contract without the authorization of the Common Council. Before I could write a post about what happened, I received the following statement from Mayor Joseph Ferris:

In response to discussion about Kearney Group's contract with the City of Hudson at this evening's formal Common Council meeting, Mayor Ferris released the following 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.

Gossips' coverage of the discussion of this issue at the Common Council meeting will follow, although reporting on the outcome of today's primary election may take precedence. 

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