Agallas Equities has filed a lawsuit against the New York City Economic Development Corporation (EDC), its CEO Andrew Kimball, the developers of 8th Regiment Partners LLC, and Bronx Borough President Vanessa Gibson, as well as her former deputy borough president, Janet Perguero. The suit claims that the selection process for the Kingsbridge Armory redevelopment was tainted by undue political influence and procedural irregularities.
According to the lawsuit, Agallas Equities alleges that Vanessa Gibson through her deputy, Perguero, improperly influenced the procurement process in favor of 8th Regiment Partners, a joint venture of MADDD Equities and Joy Construction. Gibson through her spokesperson, Michael Ivory, responded to inquiries from THE CITY saying, “It is evident that the Office was named merely in an attempt to generate news and attention,” The redevelopment of the Kingsbridge Armory is a long-overdue investment in The Bronx, promising thousands of jobs, hundreds of affordable housing units, and numerous safe community spaces. Attempting to obstruct this development for selfish business and political reasons is nothing short of disgraceful.”
The suit further asserts that Perguero, a registered lobbyist for MADDD Equities in 2021 before assuming her position in the borough president’s office, had a conflict of interest in the decision-making process. Gibson announced on Monday, April 7th that Perguero has resigned to spend more time with her family. Perguero joins a long list of Gibson staffers who have resigned.
The lawsuit raises concerns about the integrity of the procurement process, alleging discrepancies and irregularities in the bidding. Agallas Equities contends that the winning proposal closely mirrored its own, particularly in design and programming elements. Additionally, the firm argues that the selection process lacked transparency, with key documents withheld despite Freedom of Information Law (FOIL) requests.
The allegations cast serious doubts on the fairness of the process, with Agallas Equities demanding that the contract awarded to 8th Regiment Partners be nullified. The firm also calls for a new and transparent selection process and to refer the matter to law enforcement agencies for further investigation.
The controversy surrounding the Kingsbridge Armory project has intensified following the recent resignation of Perguero. Gibson announced on Monday, April 7th, that Perguero would step down to focus on family matters, a decision seen as a direct result of the mounting scrutiny over her role in the project and the ongoing lawsuit.
As the legal proceedings continue, attention will remain focused on the allegations of undue political influence and whether they will lead to significant changes in the future of the Kingsbridge Armory redevelopment.
