Broadway School Chronology

1978 - Newburgh Enlarged Central School District (NECSD) closes Broadway School

February 1984 – City Council resolution authorizes negotiations for the purchase of the school.

September 1984 – City Council authorizes the execution of a contract with the School District for the purchase of the school for $150,000. (3 to 2 vote).  The stated intent is to renovate the building for use as City Hall and for a home for Club 60.

November 1984 – At the City’s request, the School District provides a copy of a 1983 asbestos report that states that the school “was inspected and only one suspicious sample was taken in the class room area.  It did not contain asbestos.  Boiler room area contains asbestos on boilers and pipe covering.  Encapsulation has proven effective.”

April 1985 – City closes on the purchase of the school with the school district.

November 1985 - City Council votes on a funding for the building renovations, estimated at $800,000.  The vote fails to pass (3-2 in favor) for lack of the super-majority required.  City abandons plans for conversion.

August 1986 – The City Council authorizes the sale of the Broadway School to the City’s Local Development Corporation (LDC) for $180,000.  City retains the right of first refusal to repurchase the property.  Mayor Shapiro asks the National Development Council (NDC) to develop a plan for the use and renovation of the school.  The developer would be a newly formed partnership between NDC, the LDC, William Hauser and Richard McGoey (to become Den Cass).  The Den Cass partnership was formed out of the necessity created by the City’s acquisition of the Broadway School and subsequent abandonment of the intended purpose of redeveloping it as a City Hall.  The City now, owned a building with no identified use and with no money to redevelop it.  The initial plan called for the school to become a “spec” office building, meaning that it would be redeveloped without any identified tenancy.  This was obviously a very difficult development scenario to finance, especially with little or no equity in place.  The Den Cass partnership, utilizing a combination of grants, private investment and in-kind services (no City of Newburgh funds) was structured to provide enough owner equity to leverage the required bank financing to rehabilitate the building.  Den Cass also provided the beginning of an occupancy plan for the project by committing the City’s Office of Economic Development and the engineering firm of McGoey & Hauser Consulting Engineers P.C. to lease space in the building.  This was also critical to securing private financing.  Total cost of the project is estimated at $2.4 million ($1,666,000 hard costs). 

September 1986 – The City applies to HUD for an Urban Development Action Grant (UDAG) to facilitate the renovation of the school.

December 1986 – The structure of the Den Cass partnership is formed.  The LDC will contribute a $560,000 UDAG from HUD to the City, NDC will contribute $400,000 in cash and McGoey and Hauser will contribute $162,000 in professional services.  The LDC will control 41% of the partnership, NDC 39% and McGoey and Hauser 10% each.

December 1987- McGoey and Hauser make a cash payment of $5,176 from their funds to cover interest payment on Den Cass construction loans.

April 1988 – Den Cass begins discussions with Orange County Community College (OCCC) regarding their interest in the Broadway School as an extension center.

July 1989 – The Den Cass is converted to a limited partnership.  Dr Sanford Ullman contributes $150,000 and becomes a limited partner with 24% interest.   NDC’s interest is reduced from 39% to 15%.

June 1989 – City transfers the school property to the Newburgh Industrial Development Agency with Den Cass as the developer. Den Cass hires Elmondorf Environmental to prepare asbestos abatement plans and specifications. Bid specifications include no mention of asbestos in walls or ceilings.  Construction begins and limited asbestos abatement is done replacing floor tiles and pipe insulation.

September 1989 – Broadway School is appraised at $2.5 million.

October 1989 – Den Cass enters into lease with OCCC.

January 1990 – OCCC takes partial occupancy of school. OCCC moves into 2nd floor while construction continues on 1st and 3rd.  OCCC occupies the entire building by June.  Den Cass acquires the property at 9 Robinson Avenue and demolishes the building on the site to provide additional parking for the college.

August- 1992 - Den Cass partnership is amended to reflect changes in equity contributions.  NDC is unable to provide its anticipated cash share and is released from the partnership, while McGoey and Hauser’ additional cash and in-kind contribution is recognized.  Ownership is now 38% LDC, 24% Ullman, and 19% each for McGoey and Hauser.

October 1992 – OCCC extends its original lease 5 years to June 1998.  However, the college outgrows the Broadway School before the end of its lease and plans to relocate to    1 Washington Center.

December 1992 – Broadway School is appraised at $2.7 million

February 1997 – School again appraised for $2.7 million.

April 1998 – NECSD enters into 5 year lease with Den Cass starting 7/1/98.  Included with the lease is an option for the NECSD to purchase the property for $2.7 million.

June 1998 – OCCC vacates the building. Den Cass begins renovations of the building on behalf of the School District at a cost of $621,380.  Renovations include additional asbestos abatement in the boiler room.

September 1998 - School District moves in. While the School District is occupying the building, they do additional carpet installation over suspected ACM floor tiles.

May 2000 – NECSD holds a public referendum on an $11.4 million bond which includes the purchase of the Broadway School and several adjacent properties.  The approval of the bond fails by 2 votes.  

June 2003 - NCSD vacates Broadway School at the end of the lease.

August 2004 - Den Cass receives initial offer from the Church of God of Central Newburgh to purchase the Broadway School.

April 2005 – IDA and LDC Boards approve terms of sale of the school to the Church of God.  The sale price is $2.7 million with $200,000 ($50,000 non-refundable) deposited at the signing of the contract, a $500,000 charitable donation and $2 million upon closing.

September 2006 – Den Cass enters into contract of sale with the Church of God.

February 2006 – NECSD again expresses interest in leasing the Broadway School, this time as “a junior high school satellite.”

March 2006 - after the Church of God fails to close on the sale despite being granted several extensions, Den Cass terminates the contract.   

April 2006 - City Council authorizes purchase of the Broadway School for courthouse for

$2.7 million.

February 2007 – the Church of God grants Den Cass a general release of any claim of its rights to purchase the school in return for a refund of all but $3,500 of its $200,000 deposit.