Sign up to save your podcasts
Or
Share Lender Sues Over Beacon Development
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Lender Sues Over Beacon Development
Eliza Street condominiums incomplete
A lender filed a lawsuit in Dutchess County court this month demanding repayment of nearly $4.63 million from the developer of an incomplete Beacon housing project.
The suit, filed Feb. 4 by Insula Capital Group, alleges that Qele "Charlie" Qelaj, who is listed in a state database as the registered agent of Eliza Street LLC, failed to repay loans of $747,000 and $3,881,950 to construct The Mews at Beacon, a nine-unit condominium development at 53 Eliza St.
The project, which was approved by the Beacon Planning Board in 2019, would have loft-like condos in three buildings around a landscaped courtyard. A representative for the developer said in 2023 that construction was 70 percent complete and Qelaj was getting new financing. Last year the representative said Qelaj had approached a new lender.
Insula said in its complaint that Qelaj requested three extensions on the $747,000 loan, which was taken out in 2021. According to the legal filing, in 2022 Qelaj consolidated two other loans totaling $3.9 million.
In January 2023, the Zoning Board of Appeals granted the project a one-year extension of a variance to construct multi-family units in an area zoned for single-family homes. It also provided an extension on a variance to construct nine units on a parcel that was allowed only six. At that time, the project's attorney wrote in materials submitted to the ZBA that the three buildings had been constructed and would be "completely finished" within 10 months, notwithstanding complications presented by the pandemic.
Insula asked the court to force the sale of the development to pay the debts, plus interest and fees.
416-420 Main St.
The City Council on Tuesday (Feb. 18) approved a second six-month extension of the special-use permit approved in 2021 for the four-story building at 416-420 Main St.
The project merged two lots and will include retail on the ground floor, office space on the second and third and a single apartment on a recessed fourth floor, as well as an outdoor plaza open to the public. Construction had been delayed by "long lead times required to finish interior spaces," according to a memo from the city attorney, but is expected to be complete within six months.
View all episodes
By Highlands CurrentEliza Street condominiums incomplete
A lender filed a lawsuit in Dutchess County court this month demanding repayment of nearly $4.63 million from the developer of an incomplete Beacon housing project.
The suit, filed Feb. 4 by Insula Capital Group, alleges that Qele "Charlie" Qelaj, who is listed in a state database as the registered agent of Eliza Street LLC, failed to repay loans of $747,000 and $3,881,950 to construct The Mews at Beacon, a nine-unit condominium development at 53 Eliza St.
The project, which was approved by the Beacon Planning Board in 2019, would have loft-like condos in three buildings around a landscaped courtyard. A representative for the developer said in 2023 that construction was 70 percent complete and Qelaj was getting new financing. Last year the representative said Qelaj had approached a new lender.
Insula said in its complaint that Qelaj requested three extensions on the $747,000 loan, which was taken out in 2021. According to the legal filing, in 2022 Qelaj consolidated two other loans totaling $3.9 million.
In January 2023, the Zoning Board of Appeals granted the project a one-year extension of a variance to construct multi-family units in an area zoned for single-family homes. It also provided an extension on a variance to construct nine units on a parcel that was allowed only six. At that time, the project's attorney wrote in materials submitted to the ZBA that the three buildings had been constructed and would be "completely finished" within 10 months, notwithstanding complications presented by the pandemic.
Insula asked the court to force the sale of the development to pay the debts, plus interest and fees.
416-420 Main St.
The City Council on Tuesday (Feb. 18) approved a second six-month extension of the special-use permit approved in 2021 for the four-story building at 416-420 Main St.
The project merged two lots and will include retail on the ground floor, office space on the second and third and a single apartment on a recessed fourth floor, as well as an outdoor plaza open to the public. Construction had been delayed by "long lead times required to finish interior spaces," according to a memo from the city attorney, but is expected to be complete within six months.