Condo project to start again

More than three years after developer David Neuberg was given the go-ahead to build luxury condominiums on the former site of the Number One School in Lawrence, the project has barely gotten off the ground, brought to a halt by the credit crisis. But construction is set to resume after Neuberg obtained new financing for 144 condominium units on the 3.79-acre property off Central Avenue.

Village Administrator David Smollett said Neuberg has told him that he plans to restart construction next month. Some of Neuberg's previous financing came from former Wall Street giant Lehman Brothers, which filed for bankruptcy in September 2008, bringing about the delay. In 2007, North Fork Bank, which was acquired by Capital One Bank in 2008, said it was providing $76.4 million in financing to cover 78 percent of the project's planned development costs.

Neuberg could not be reached for comment.

Neuberg purchased the former Number One School property for $27.5 million in 2006, two years after the Lawrence school board voted to close the elementary school as part of a consolidation plan to save the district money. Neuberg had started construction by demolishing the Number One School and building most of the foundation for the condominiums in 2008, with the last construction taking place in March 2009, according to Lawrence village officials. The source of Neuberg's new financing is unclear, but his attorney, William Bonesso, said he had been in contact with a real estate investing and consulting company called Broadway Equities.

Lawrence Mayor Simon Felder said the condominium project is vital to the village because it would add another property to the tax rolls and provide additional housing options for senior citizens and young families. "It would be a great plus and asset to our community," Felder said.

The construction delay has had no effect on revenue the Lawrence school district has received from the sale of the Number One School, according to school board President Murray Forman. "We received every penny," said Forman, adding that if the property were sold today, it would probably be valued at only half what Neuberg paid for it because of the downturn in the economy.

Since his purchase, Neuberg has been paying property taxes to the Lawrence school district, the village and Nassau County, according to Smollett.

When Neuberg unveiled his plans during a January 2007 Lawrence zoning board hearing, he said the complex would have 213 parking spaces, including 180 underground spots and 33 for visitors in front of the building, along with a circular driveway with valet parking available. Neuberg has also said there would be a tree-lined entrance, courtyards, a community room, a gym and an indoor pool.

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