The sponsors and other companies involved in the development and early management of the starchitect Richard Meier’-designed On Prospect Park, at One Grand Army Plaza in Brooklyn, are being sued for more than $200 million by the condo’s board. The allegations include misappropriation of funds, a leaky curtain wall, an “unsalvageable roof,” uncompleted amenities and other construction defects.
The complaint filed yesterday in Brooklyn state court alleges that four years after it opened for move-ins in December 2008, there is still no certificate of occupancy and the temporary C of O lapsed on Aug. 4 with 13 items still to be completed.
Lawyer Steve Sladkus of Wolf Haldenstein, who represents the residents, says the lack of a C of O runs afoul of not only city Building Department regulations, but the unit owners’ own mortgage and insurance requirements.
“No refinancings or resales can occur, nor can the sponsor sell any units,” said Sladkus.
The sponsor, SDS Procida Development Group, is controlled by Mario Procida, and Procida’s construction company was also the construction manager of the project. Procida said he is trying to work out all the issues with the board.
“The renewal of the Temporary Certificate of Occupancy is in process,” said Procida. “It has been open longer than we’ve liked, and we’re in the process of trying to go to a permanent C of O.”
The complaint also alleges the sponsors are $62,000 in arrears in past-due common charges. Procida said, “The arrearages have been up and down, depending on closings and items of that nature.”
Procida was allegedly partner in this building with entities controlled by Louis V. Greco Jr. and his wife, Linda, who served as one of the sponsor’s appointees to the board.
Other sponsor appointees, including its manager, secretary and treasurer, are also named in the lawsuit, and two others are attorneys.
Investor Stephen Gordon and the Corcoran Group, which ran the building’s original marketing, were also named in the complaint, along with architect Stephen B. Jacobs who acted as the architect overseeing Meier’s vision.
Jacobs said of Procida, “They are very good people and good builders, and if there are any problems, I have 100 percent confidence they will go out of their way to resolve it.”
Jacobs said he has been asked by Procida to help get approvals through an appeals process for a roof system to maintain the curtain wall that exceeds the area height limit.
The 15-story, 115-unit project overlooks the Soldiers’ and Sailors’ Monument and has beautiful views of the park. The total sellout value of the building was more than $205 million.
Units that were originally offered at $1.5 million were reduced to $695,000 in January when Brown Harris Stevens took over sales of the last 21 units, including three penthouses offered for up to $5.1 million, which feature 3,500-square-foot roof decks.
The lawsuit says seven units remain and alleges that sale proceeds have been diverted.
“On the money: That’s all been resolved,” said Procida. “There was a number that was agreed to. That’s been worked through with the managing agent and the board.”
Procida, who grew up in a construction family based in the Bronx, is also the sponsor of the popular series of buildings that start with “B@,” which include B@Schermerhorn and B@Boulevard East.
The board president did not return a call for comment.
The other parties could either not be reached or had no comment.