Meaghan M. McDermott

Staff writer

As troubles mount for the developer of the stalled Medley Centre project, Rochester Broadway Theater League chairman Arnold Rothschild took to Irondequoit on Thursday to call for a "time out."

The continued impasse over the project imperils the chances for a new RBTL venue in Irondequoit, he said.

Speaking before the Irondequoit Chamber of Commerce, he gave an impassioned plea for the community to give developer Scott Congel and his Bersin Properties LLC one more chance to make good on promises to resurrect the moribund mall as a residential, retail and cultural hub.

"We need to break this awful gridlock and move this project forward," said Rothschild, adding that he's privy to information not yet public about Congel's plans and ability to secure new financing.

"I am asking that you all call a 'time out' and say to your elected officials, 'Wait, how do we accomplish what's good for the community?' " he said.

Rothschild's words came in the wake of an ultimatum on Tuesday from the East Irondequoit Central School District, town of Irondequoit and the County of Monroe Industrial Development Agency after Congel failed to make good on money owed for his 54-acre mall site.

According to the agencies, Congel owes about $3.9 million for his regular annual payment-in-lieu-of-taxes plus a hefty penalty for missing a construction milestone he agreed to in order to get the mall's tax burden reduced. He was given until May 1 to make the payment, or face losing his local tax breaks.

In a second blow, saying Congel had "lost all credibility" with him, state Assembly Majority Leader Joseph Morelle, D-Irondequoit, on Thursday kicked off a push for the state's economic development organization to investigate whether the property should continue to get a lucrative property tax break from the state.

"We have been exceptionally patient and I don't think we can wait any longer for this project to move forward," he said.

In a written statement, Bersin Properties representatives said it is "unfortunate" that Morelle has "chosen to try to politicize this situation while we are working with government officials to advance this project."

Medley Centre over the past 10 years has received roughly $4 million worth of refundable tax credits, or payments, through the state's now-ended Empire Zone program. The mall, vacant but for a soon-to-depart Macy's and a Sears, continues to be grandfathered in under the program. The agreement's modest terms call for there to be at least two full-time employees working within the zone boundaries, said Morelle.

Those payments are separate from the payment-in-lieu-of-taxes, or PILOT, agreement that Congel's Bersin Properties LLC inked in 2009 with local municipalities. That pact reduced property tax payments for the mall site, as Congel claimed he needed the break to clear the way for his $260 million complex of shopping, hotels, residences and office space.

But so far, nothing's been built. There's no heat or power in the mall's cavernous, vacant interior. Pipes inside broke last month, flooding a loading bay. The parking lot lights don't work and, it was apparent on Thursday, there's no plow service to large swaths of access roads and parking areas there.

Bersin Properties wants to renegotiate its PILOT agreement to extend its construction milestones, and says it cannot get new financing without a new agreement. But the town, school district and COMIDA have so far rejected the company's requests for new terms, saying the developer needs to live up to his existing commitments before they'll budge.

John Abbott, deputy superintendent of the East Irondequoit school district, said what happens after May 1 depends on Congel. If he does not pay and defaults, the property would go back on the tax rolls at its full value. Then he could pay the tax or not. If he doesn't, then the county could initiate tax lien and possible foreclosure. Litigation would be likely. Whatever does happen next is just a step in what could be a very long process.

Rothschild, while insisting that he is not a spokesman for Congel, laid blame for hold-ups in the project on the school district and its legal team. He said he's seen documents that show Congel has $129 million, expandable to $500 million, in financing plus a $50 million bridge loan ready to go if he gets a new PILOT. He said plans include a 42-story residential "spire," parking garages, the new theater and a wide range of other amenities. Construction jobs created there would top 3,800 annually for a planned three-year build-out phase, he said.

But if the Medley Centre plan does not materialize because Congel can't renegotiate, RBTL will still need a new theater, but it most likely will end up in Rochester, not Irondequoit.

"But I believe it belongs here," Rothschild said.

MCDERMOT@DemocratandChronicle.com