Mayor Kokoros has announced that he has terminated the agreement with Paul Cokinos and E Street LLC (collectively “E Street”) regarding the Petersen Pool and Rink Project (the “Project”).
In April, following delays in the permitting and construction related to the Project, Mayor Kokoros and E Street set weekly milestones that needed to be met in order to move the project forward and ensure compliance with the Ground Lease. Specifically, E Street agreed to provide the following:
- Week 1: Updated letter of financing; Foundation Permit Application
- Week 2: Architectural Drawings of the outside of the building; Contract executed for design and construction of the pool
- Week 3: Architectural Drawings of the inside of the building
- Week 4: Complete Drawings
E Street failed to provide the materials required in the first two weekly milestones. Additionally, E Street was in violation of several provisions of the Ground Lease including, but not limited to, providing proof of financing necessary to proceed with the Project, payment of outstanding balances for work performed, the pursuit of required permits to commence construction and the production of construction and architectural plans necessary to obtain the same. As a result of E Street’s defaulting on the terms of the Ground Lease, as amended, Mayor Kokoros invoked the 30-day termination clause of the Ground Lease and served E Street with formal notice on April 16, 2021 (the “Notice”). If E Street failed to remedy the breaches outlined in the Notice the Ground Lease would terminate effective May 16, 2021.
Given the progress that had been made on site during the months of April and May, Mayor Kokoros gave E Street a 30-day extension to June 15, 2021, to fulfill their obligations required by the Ground Lease.
As of today, E Street has failed to cure the defaults identified in the April 15, 2021 notice and, as a result, its relationship with the Town relative to the Petersen Pool and Rink Project has been terminated, effective immediately. E Street remains responsible for paying any outstanding costs, or other obligations, related to the Project and must immediately vacate the property and surrender title to the facility, all tenant improvements and any design, engineering, architectural and other plans to the Town.