Hotel Demolition Halted

Malone, NY: (Mar-31-08) Bianchi Demolition Services Inc., a Syracuse demolition company, brought a lawsuit against the Village of Malone, over a once-planned demolition of the Hotel Flanagan. The suit, filed in June 2005, stated that the village breached its contract with Bianchi, and that the company was owed the entire $459,000 it was awarded in October 2003 when it agreed to tear down either the entire five-story structure or the top three floors of the Hotel Flanagan. The company stated that the work would be paid for using $360,000 promised by U.S. Rep. John McHugh and $140,000 left over from an unspent 1999 low-income-housing loan from the US Office of Housing and Urban Development.

Sources stated that a settlement agreement had been reached, resolving the dispute between Bianchi Demolition Services and Malone. Under the terms of the settlement agreement, the demolition company will get $37,500 to resolve litigation. Village officials stated that the settlement amount will be paid from the general fund, along with $17,160 for legal fees. Bianchi Demolition Services Inc. and the village agreed to the out-of-court settlement to avoid the costs and risks of litigation. The company was originally seeking $180,000. [PRESS REPUBLICAN: DEMOLITION LAWSUIT OVER HOTEL FLANAGAN SETTLED]

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Published on Apr-1-08