AG Ready to Sue if Allure Group Doesn’t Build LES Health Care Facility by 2022

Posted on: May 15th, 2019 at 5:00 am by

And so the Rivington House saga continues apace…

Under the terms of the settlement with the New York Attorney General last year, the Allure Group 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. All related to their role in the lifting of a deed restriction that led to the $116 million sale.

Also part of the stinging settlement deal is a commitment, within five years – or by 2022 – 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.” Allure must open a Department of Health–licensed facility, such as a nursing, primary-care clinic, adult-care, or a substance use treatment facility.

According to a report in Crain’s, the city has identified and reviewed potential sites where the nursing home operator could construct a new facility.

Paul Mahoney, assistant deputy attorney general, told the Health and Human Services subcommittee of Community Board 3 last Thursday that they’re monitoring the situation closely. And stressed that the attorney general’s office could sue Allure if it doesn’t meet the terms of its settlement.

Mahoney said the attorney general’s office purposefully didn’t specify what type of health care facility Allure should operate because it believes the project should address the community’s needs.

“Right now we’re monitoring their progress,” Mahoney told the CB3 panel. “We have seen ideas. We have seen properties named. One of our goals is get that process done. In the real estate environment on the Lower East Side, that’s not an easy thing to do.”

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.

Recent Stories

65-Year-Old Man Jumps to His Death from 6th Floor of Seward Park Co-op

A 65-year-old resident of the Seward Park Co-op reportedly leaped to his death early Tuesday morning. According to the police report, the man jumped from the window of his sixth-floor apartment at building 4, west of Clinton. Officers from the 7th Precinct responded at 7:47am, and found him unconscious at the scene. Further investigation into the […]

Open Call for Muralists to Decorate First Street Green Art Park

Centre-fuge, whose popular art trailer was deposed last summer after seven years, is seeking muralists to paint part of the First Street Green Art Park. The group put out the official request for proposals yesterday morning. There are seven fence-canvases available for the taking. Artwork is curated on a rotating basis, so this next batch […]

Mulberry Market Signage Goes up in Little Italy

Months delayed, the forthcoming Mulberry Market finally has something to show for itself. Store signage was installed yesterday above the entrance to the highly-anticipated supermarket (stylized as MulberryMARKET). The new marketplace is apparently a “family business” that is years in the making. It replaces the decades-old MET Food, which was unable to negotiate favorable lease […]

DOT Announces More ‘Asphalt Art’ for Chinatown Seasonal Streets

For the second year running, Doyers Street is the recipient of the alliterative Asphalt Art. The Department of Transportation’s Temporary Art Program (DOT Art) is again joining forces with the Chinatown Partnership to paint the former “Bloody Angle.” Hangzhou artist Chen Dongfan was the first to paint the area last July, imparting a 4,851 square-foot mural […]

Cactus Store Returns Saturday for Third Season on Essex Street

Unless (or until) development takes hold at 5 Essex Street, the annual cactus retail setup will continue. For the third year running, the Los Angeles-based Cactus Store is set to return this season. Ownership confirmed the plans, and relayed an opening date of this Saturday (May 25). All the infrastructure is still in place, including […]