Cobble Hill

Fortis vs. SUNY lawsuit over disastrous deal to develop LICH

September 6, 2023 Mary Frost
The former Long Island College Hospital, known as LICH. Photo: Mary Frost/Brooklyn Eagle
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COBBLE HILL — Fortis Property Group’s seemingly cursed deal to develop  the former Long Island College Hospital campus has hit another snag, The Real Deal reports.

Last year Fortis had to sell off two of the towers in its $1 billion River Park development. Now the State University of New York (SUNY), which sold the historic hospital to Fortis for $240 million in 2014 after years of protests and lawsuits, is claiming in court that Fortis never made its third payment.

A Fortis spokesperson claimed it was SUNY that failed to satisfy conditions required to close, however. Fortis also said that NYU Langone has backed out of its commitment to lease the medical facility long-term from the developer.

SUNY has terminated the deal and is seeking $8 million that it claims Fortis owes for failing to close, according to TRD. It also intends to keep Fortis’ $7 million deposit. Visit the Brooklyn Eagle’s extensive archive of stories on this topic.

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