Legal filings surround warehouse demolition

An appeals court in New York has ruled that the winning bidders on a warehouse demolition project can begin their work despite a lawsuit filed by a contractor whose bid was not accepted.

The legal tangle involves tearing down the Central Warehouse in Albany, New York, which is being overseen by economic development agency Advance Albany County Alliance.

A late September report by Steve Hughes of the Albany Times-Union indicates Schenectady, New York-based Jackson Demolition Service filed the suit.

The report indicates Gramercy Group, based in Wantagh, New York, and LiRo-Hill of Syosset, New York, jointly submitted the $14.6 million winning bid, though the bid by Jackson Demolition, at $14.1 million, was lower. The Advance Albany County Alliance said other considerations went into its decision, according to Hughes.

Subsequently, Jackson Demolition filed a suit in March against the economic development agency.

In July, a New York Supreme Court Justice ruled against the plaintiff, unable to find a legal requirement that the Advance Albany County Alliance was compelled to accept the lowest bid.

Regarding the other considerations the economic development agency cited for rejecting the bid by Jackson Demolition, the report cites Kevin O'Connor, CEO of the Advance Albany County Alliance, as saying Jackson’s presentation contained less engineering and planning detail compared with other proposals, including knowledge of requirements and procedures pertaining to the demolition work being performed adjacent to Amtrak passenger rail tracks.

The Central Warehouse contains 11 floors and more than 400,000 square feet of cold storage space. Photos of the building show a concrete edifice situated near an elevated highway, in addition to the railroad tracks.

An entry on the newyorkalmanack.com website describes the structure as having been built in 1927 by the New York Central Railroad. The same article indicates the building has gone through numerous ownership changes until a 2022 foreclosure brought the property under the management of Albany County.