The township administration has apparently directed the redevelopment counsel recently to send two default notice letters to Prism, the designated redeveloper for the downtown redevelopment area. If the defaults are not corrected within the specified time periods, the redeveloper risks losing its designation as the exclusive developer for the downtown redevelopment area.
The township sent a letter demanding information from Prism on October 26, 2012. The letter asks for information related to required notification to the town of material adverse changes in Prism's financial condition, including the foreclosure action on Prism's Barton Press property and other legal actions. The letter also asks for financial information.
The first default letter, dated November 14, 2012, cites Prism’s failure to pay $173,246.05 to cover the town’s costs for the project as well as additional funds to the escrow account for future costs. The letter indicates the request for the funds was originally made by letter on September 26, 2012; this letter is not included with the default notice.
The second default letter, dated November 20, 2012, cites Prism’s failure to pay $123,943.65 in delinquent property taxes and interest.
The 2006 Redevelopment Agreement between the township and Prism, which is the basis for the default notice letters, is here.
Prism demand for information letter from township October 26, 2012
Prism notice of default letter re escrow November 14, 2012
Prism notice of default letter re property taxes November 20, 2012
2006 Redevelopment Agreement with Prism