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Old Posted May 6, 2008, 4:02 PM
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Bankruptcy Fails As Eviction Tactic

Renovation on hold as DeWitt Clinton building owner's filing denied

By CHRIS CHURCHILL, Business writer
Tuesday, May 6, 2008

ALBANY -- The legal case is kaput, and Tom Nicci's businesses remain right where they've been for years -- at the base of the DeWitt Clinton building.

That's not what the owner of the building, See Why Gerard LLC investor Chaim Ausch, hoped for when he filed for Chapter 11 bankruptcy protection five months ago. He hoped the filing would lead to the eviction of Nicci's businesses -- The State Room Banquet Hall and The Comedy Works -- from the building where a high-end hotel is planned.

U.S. Bankruptcy Court Judge Robert Littlefield Jr. dismissed the case on Thursday.

Negotiations between the parties continue, Nicci's attorney, Stephen Waite, said Monday.

Waite said his client is willing to leave the historic downtown Albany high-rise -- but only if the price is right. Otherwise, Nicci could stay for the nearly 11 years remaining on his lease.

"The only reason he would want to leave is to assist what the owner of the DeWitt is trying to accomplish," Waite said.

Nicci signed a 15-year lease in 2003, before See Why Gerard purchased the property for $5.3 million. At the time, the building contained 400 apartments that catered to low-income residents. Those tenants have been evicted.

Ausch has said the building, located on State Street near the Capitol, is well positioned for conversion into a hotel. He says the redevelopment cannot begin as long as Nicci's businesses remain.

Still, Richard Weiskopf, Ausch's bankruptcy attorney, said he and his client supported the dismissal of the bankruptcy case, as it was proving to be an ineffectual tool.

"The goal here is to get the tenant out," Weiskopf said. "We weren't really getting anywhere in the bankruptcy process."

City officials, including Mayor Jerry Jennings, have expressed support for the DeWitt Clinton redevelopment, partly because of the site's high visibility and symbolic importance.

Albany developer Columbia Development Cos. has announced plans to redevelop a row of buildings immediately to the east, with stores, apartments and a 14-story office tower.

http://www.timesunion.com/AspStories...sdate=5/6/2008
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