A losing candidate in the heated competition to develop the Kingsbridge Armory in the Northwest Bronx says the process was tainted by corruption, favoritism and theft of intellectual property, according to a new lawsuit filed by that developer.
Agallas Equities LLC, filed the suit on Friday evening seeking an annulment of the contract awarded to 8th Regiment Partners LLC in January.
In the legal filing, first reported by Norwood News, the real estate firm claims that the city’s Economic Development Corporation had been ““arbitrary and capricious, and tainted by political influence, conflicts of interests, procedural irregularities” that it alleges “violated fundamental principles of fairness, competitive procurement requirements, and applicable law.”
And, the suit claims, EDC gave 8th Regiment, a partnership between Maddd Equities LLC and Joy Construction Corporation, details from Agallas’ proposal that ended up in their competing proposal to rebuild the long vacant, nearly 600,000 square foot armory,
EDC announced on Jan. 6 that 8th Regiment had won the contest. Two weeks after that, Kimball informed Tavarez that Agallas “was not selected because it was unable to provide the required $2.5 million security deposit, as well a $250,000 administrative fee and a $200,000 environmental consultant expense,” according to the suit.
Mayor Eric Adams speaks about the Kingsbridge Armory redevelopment during his State of the City address at the Apollo Theater, Jan. 9, 2025. Credit: Ben Fractenberg/THE CITY
The proposal from 8th Regiment, dubbed “El Centro Kingsbridge,” will include a state-of-the-art event venue, a dedicated community space, a recreation center, an educational facility focused on workforce development, cultural and commercial spaces and sports fields.
On Feb. 13, Tavarez responded in an email cited in the lawsuit that he had “secured partnerships with two highly reputable firms he named to serve as investors and co-developers for the Kingsbridge Armory project.
Tavarez, who’s also a cofounder of the nonprofit International Salsa Museum, said Agallas’ proposal had included a live entertainment venue with retractable seats and a capacity of 12,000, athletic fields, a workforce development partnership with the City University of New York, space for small businesses and a home for the museum.
According to the lawsuit, Tavarez began to hear in December that competitor Jorge Madruga, CEO of Maddd Equities, was calling up partners working with Agallas to join his team.
Madruga even called Tavarez himself in late December “under the mistaken assumption that he was speaking to a representative of the International Salsa Museum, a cultural institution co-founded by Mr. Tavarez,” the suit alleges. “Mr. Madruga began the conversation by introducing himself and informing Mr. Tavarez that he had been awarded the redevelopment of the Kingsbridge Armory and would like to include the International Salsa Museum in the project.”
Asked about the suit, EDC spokesperson Nicholas Aguilar said that “After a rigorous evaluation of all proposals, NYCEDC selected El Centro Kingsbridge’s proposal, which is consistent with the values of the Kingsbridge Vision Plan and the requirements of the RFP.”
‘Nothing Short of Disgraceful’
After the city assumed ownership of the Kingsbridge Armory in 1996, the national landmark has seen multiple redevelopment attempts run aground, including plans for a mall and a national ice center. Built in 1917 for the National Guard, the armory has critical infrastructure needs that include addressing plumbing, HVAC, electrical and flooding issues. In 2023, the EDC estimated it would cost $500 million to redevelop the building, with approximately $216 million in city and state grant funding available to support that effort.
The EDC and community groups spoke with more than 4,000 community members over the course of nine months to publish the Together for Kingsbridge Vision Plan in August 2023, which helped guide the request for proposal. Much of that organizing effort was led by the Northwest Bronx Community and Clergy Coalition, a nonprofit group that’s been advocating for locally-led development at the armory for decades.
“We are proud of the restorative plan we have put forward for the historic Kingsbridge Armory — a plan that includes many community priorities that were laid out during the public visioning process,” John DeSio, spokesperson for the 8th Regiment Partners, told THE CITY in a written statement. “In line with our long-standing, successful track record executing public-private projects in New York City, we look forward to continuing to work with the Bronx community over the coming months and years to deliver the jobs, housing and economic benefits of this City-supported project.”
The lawsuit, filed in New York Supreme Court, names Bronx Borough President Vanessa Gibson, Deputy Borough President Janet Peguero, Maddd Equities LLC and Joy Construction Corporation as well as Kimball of the EDC as defendants.
The suit alleges that “through her agent” Peguero, Gibson had “unduly influenced the procurement process by exercising political influence in favor of one party over Petitioner and thereby denied Petitioner’s right to equal protection under the law.”
Peguero was listed as a registered lobbyist for Maddd Equities in 2021.
Michael Ivory, a spokesperson for Gibson, told THE CITY someone will always be unhappy in a bidding process and that “it is not uncommon with large projects like this to have some litigation.”
“It is evident that the Office was named merely in an attempt to generate news and attention,” said Ivory. “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.”
Speaking with THE CITY, Tavarez said he might also separately sue Rep. Adriano Espaillat and amend his existing suit to also name Councilmember Pierina Sanchez.
Espaillat’s office declined to comment, while Sanchez noted that “the Request for Proposal process and selection of a developer for the Kingsbridge Armory is at the sole discretion of the NYC Economic Development Corporation,” adding that “we must ensure that the redevelopment of this great structure is both transformative and equitable for generations to come.”
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