It may be summer but things in the Winter Garden just got a little chilly.
According to recent reports, the Battery Park City Authority is seeking $4-$7 Million dollars from Brookfield Properties, owners of The World Financial Center.
The dispute is related to rent income received by Brookfield from one of their formerÂ and largest tenants Lehman Brothers, who decided to vacate and break their lease from One World Financial center after the 9/11 terrorist attacks.
Although Brookfield Properties is the rightful landlord to any and all rent income within the 8 million-square-foot World Financial Center, a portion of all rents are to cover the land lease which is owned by the Battery Park City Authority.
The authority claims that although Brookfield received a lump sum from the broken lease, they did not report their earnings and instead spread out the money over the life of the original lease — spanning several financial statements.
The net effect of this move was an overall decrease in monies owed to the authority.
According to a quote from Sandy Altman, the Authority’s general counsel, “It was a bigÂ blow.”
As of now, the case between both Brookfield Properties and the Battery Park City Authority is currently awaiting the decision of a arbitration panel.
We’ll provide more information when it becomes available.