Site of proposed Halfmoon riverside condos in foreclosure
HALFMOON Foreclosure proceedings have begun against the owners of a property along the Mohawk River where 244 condominiums are proposed.
Gail Krause and Krause Properties LLC failed to make timely payments on a $760,000 note issued in October 2005, Kain Development LLC of Sparta, N.J., alleges in foreclosure documents filed Monday in state Supreme Court in Saratoga County.
The lender is asking for $1.26 million in outstanding principal, interest, late fees and collection costs from Krause and the company, which planned to develop the Halfmoon Village & Yacht Club on Beach Road.
Krause Properties owns three parcels and Gail Krause a fourth that together were slated to make up the 36.5-acre riverfront development.
Also named as a defendant in the foreclosure is Chazen Engineering of Poughkeepsie, which filed a separate lawsuit against Gail Krause, her company and Kain Development in December seeking $101,217 for allegedly unpaid bills for engineering services.
Krause Properties planned to build six buildings with four stories of housing above one-story garages and got the Halfmoon Town Board’s approval in April 2012 to create a special zoning district to allow that. The project still needs Planning Board approval to move forward.
Plans also included a community clubhouse for residents, a dock with 75 boat slips, a boardwalk to get to the river, courtyards and pedestrian trails.
The developer promised to create a 1.5-acre public park along the Mohawk River with a launch area for nonmotorized boats, a fishing pier and parking for eight cars.
In its lawsuit filed in December in state Supreme Court in Saratoga County, Chazen Engineering alleges Krause Properties didn’t pay for work Chazen did between 2008 and 2012 during a long planning process that involved environmental studies and a river impact study by the U.S. Army Corps of Engineers.
In separate responses to the lawsuit, Krause Properties and Kain Development said Kain paid Chazen more than $600,000 and further bills up to a total of more than $700,000 represented services developers hadn’t authorized.
Invoices from Chazen were “incorrect, inconsistent and contradictory,” Krause Properties said in its filing.
Chazen had originally estimated costs to be $340,000, Kain Development said in its filing, which also accused Krause of leaving Kain out of the loop during the town approval process.
“Krause unilaterally took over total control of the effort to obtain those approvals in Krause’s own self-interest, without consultation with Kain … and without informing Kain of the magnitude of increasing costs to obtain the approvals, because those costs had already been incurred,” Kain Development alleged.
None of the attorneys for Krause, Kain Development or Chazen Engineering returned calls Friday.