Time is Ticking for the Allure Group to Create LES Health Care Facility as Part of Rivington House Settlement

Posted on: March 6th, 2019 at 5:09 am by

The legal fallout from the Rivington House scandal continues, as the Allure Group literally pays for its nefarious roles in the cancelation of the deed restriction that ultimately led to the $116 million sale of the former nursing home.

Under the terms of the settlement with the New York Attorney General last year, Allure is on the hook for $750,000 in penalties and costs to the State, plus an additional $1.25 million to a half-dozen Lower East Side healthcare non-profits.

Also part of the stinging settlement deal is a commitment, within five years, to invest about $5 million to construct another Lower East Side health care facility to “fill healthcare gaps caused by the closure of Rivington House.” And to that end, we’re told that Community Board 3 is reportedly in the process of contacting the Attorney General’s office on the status of this
requirement.

As previously reported, the recipient organizations to the $1.25 million portion of the settlement include Chinese-American Planning Council (currently co-developing a thirty-story tower atop the ruined Beth Hamedrash Hagadol), Grand Street Settlement, Henry Street Settlement, Alliance for Positive Health, Community Health Network, and University Settlement.

Meanwhile, it’s worth reiterating that co-owner Slate Property Group signed Letter of Intent with Mount Sinai for a 30-year lease at 45 Rivington Street. The hospital behemoth is planning to move its behavioral health services from the Bernstein Pavilion to Rivington House.

Article updated to correct Community Board 3 role in contacting AG, per comment from District Manager Susan Stetzer.

Recent Stories

Lower East Side Children’s Halloween Parade Marches this Weekend

Time to test run those kiddie costumes! The Henry Street Settlement’s second annual children’s Halloween costume parade and party is happening this weekend, and promises plenty of spooktacular fun for all ages. The parade route starts at Abrons Arts Center (466 Grand Street) and follows the beats of the NYPD marching band through the streets […]

Here’s Why DOT Shouldn’t Move Forward with Hated Chinatown ‘Gateway’ Art Design [OP-ED]

A glimmer of hope came over me last month when I was informed that Department of Transportation would delay its presentation to Community Board 3 regarding the controversial Chinatown “Gateway” marker. I was cautiously optimistic that Linda Lee’s “Dragon’s Roar” design would be scrapped due to unanimous local outrage and opposition, and that the selection […]

Lebanese Eatery ‘Manousheh’ Signs Lease for Seward Park Location

The year-long dormancy of the former Grand Street 7-Eleven is drawing to a close. In its place, a familiar Lebanese restaurant. Word on the street is that Greenwich Village import, Manousheh, just signed a lease for the vacated space. We’re told that asking rent had been about $18,000, but final price is unknown. Occupancy apparently […]

Game Over for ‘Water World Amusements’ Arcade on Essex Street

Much like the movie of same, Water World Amusements unceremoniously sunk. The arcade, which opened just over a year ago at 35 Essex Street, is no more. Gaming cabinets remain locked in the dark retail space, while leasing signage dominates the store marquee. That this game room failed to hit is not a shock. Water […]

‘Greens and Grains’ Shutters, While Famous Hakki Readies Essex Chicken Spot

Greens and Grains is no more after a year in business, as Hell Square eats another of its own. Instead, the so-called Pizza Champion is opening a chicken-focused eatery. Hakki Akdeniz, who owns a plethora of pizzerias around the neighborhood, is planning to open Essex Chicken at 115 Essex Street. Just a few doors down […]