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

NYPD Shut Down Adidas 99-Cent Sneaker Stunt on the Bowery Yesterday After it Turned Violent

Police yesterday morning shut down an out-of-control Bowery pop-up selling a limited-edition sneaker collaboration between adidas and AriZona Iced Tea. The huge crowds were the collective answer to the question, what happens when you sell a rare sneaker for 99 cents? The collaboration yielded two limited-quantity styles – Yung 1 and Continental. Both were available […]

Watch this Brazen Tagger Desecrate Louis Vuitton Logo on Ludlow Street

It’s clear that the locals aren’t too thrilled with the invasive Louis Vuitton pop-up at Ludlow and Rivington Streets. And one brazen tagger proved it. Midday Wednesday, a youngster jumped onto the building’s garbage bin and quickly spray-painted over the company logo. The graffiti lasted for a couple hours before it was buffed away. As […]

Katz’s Adjacent Retail Condo Sells for Record $89M

The hot pastrami sandwich at Katz’s Deli costs $22.95; the ginormous commercial condo in Ben Shaoul’s luxury development next door costs $89 million. Developer Ben Shaoul reportedly sold the retail portion of the building to the AR Global affiliate New York City REIT. Stated sale price is $88.75 million, which makes it the most expensive […]

Man’s Throat Slashed in Barbershop Bloodbath on Stanton Street

A 27-year-old man was slashed inside a barbershop on Stanton Street yesterday morning. The unidentified victim was attacked at about 11:15am while inside First Choice Barbers at 156 Stanton Street. The attacker, 35-year-old Aldo Corniel, slashed the customer in the throat; a third man saved the day by bashing the assailant with a fire extinguisher. […]

Doyers Street ‘Asphalt Art’ Ahead of Chinatown Seasonal Streets Closure

The third annual “Chinatown Seasonal Streets” initiative is upon us. As part of the program, select streets are closed to traffic to create public pedestrian space. The temporary plazas are also decorated with so-called Asphalt Art. Doyers Street had been the pilot, but this year sees the inclusionof a 5,370 square-foot area of Mott Street […]