TROY – The developer of the proposed 11-theater multiplex project 1 Monument Square site demanded the city reimburse nearly $250,000 in fees and costs, claiming in its letter ending the deal that the city couldn’t fulfill its promises.

Meanwhile, Mayor Patrick Madden’s administration waited 17 days before disclosing to the City Council and the public that Bow Tie Cinemas Inc., through its BTP Monument Square LLC subsidiary, had terminated the land development agreement for the 1.18-acre former City Hall site on Sept. 26.

Council President Carmella Mantello said Madden should have come to the council in an effort to see if problems with Bow Tie could have been resolved instead of waiting nearly three weeks to announce the project was done.

"It's definitely not providing an open and transparent government," said Mantello.

The Sept. 26 letter sent by A. Brooks Hock, Bow Tie’s attorney, and addressed to Madden’s attention said that among the city’s obligations was that the city owned the site and was supposed to transfer the land.

The former City Hall site is at the south end of Riverfront Park between River Street and the Hudson River.

“As we are all painfully aware, it appears that the City will no longer be able to fulfill its obligations under the LDA (land development agreement) , and in fact, may never have been able to do so,” wrote Hock, a partner in Williams Mullen, a law firm in Richmond, VA.

“Hence we are hereby terminating the LDA and demanding the return of our $60,000 deposit and reimbursement of its costs to pursue the project thus far, which currently total $186,065.79,” Hock continued.

The Bow Tie letter came after Sam Judge of Judge Development Corp. filed a lawsuit Sept. 1 in Rensselaer County State Supreme Court to block the $22.7 million movie theater development, claiming it failed to follow proper environmental reviews and that a portion of the proposed project would be on city parkland. Judge sued the city, Bow Tie and Bonacio Construction.

The lawsuit halted the project shortly before it was expected to receive final approval from the city Planning Commission. The lawsuit is still pending in court.

The Madden administration said it’s attempting to resolve the situation with Bow Tie.

“As previously announced, the city is confirming the receipt of the termination letter from Bow Tie Cinemas pertaining to the redevelopment of the One Monument Square site. There is no litigation between the city and Bow Tie Cinemas, but there are legal matters still under consideration which need to be addressed,” said John Salka, a Madden spokesman.

“The city of Troy is optimistic about exploring other opportunities between Bow Tie Cinemas and hope to welcome them back to our community in the future,” Salka said.

Hock and representatives of Bow Tie and Bonacio did not respond Monday to requests for comment.

The city promoted the theaters with an estimated patronage of 10,000 people weekly as the cornerstone for creating an 18-hour downtown that would funnel more customers into local businesses. Some residents and business owners expressed concerns about parking and the building's design.

Councilman Robert Doherty, a Democrat, said the ownership of the property has never been considered an issue. Doherty pointed out this is the fourth time a proposal has been made to develop the site and failed. One proposal was submitted by Judge Development Corp.

“It’s pretty contentious. They certainly want the money,” said Doherty, who added that council members were advised by the Madden administration to be cautious in their comments about the situation.

Councilman Mark McGrath said the City Council has only acted on what was presented to it by the administration and was not involved in the negotiations or project development.

“The whole thing is unfortunate. It seems like they keep stepping on a rake and it keeps hitting them in the head,” said McGrath, a Republican.

Former Mayor Harry Tutunjian first suggested developing the City Hall site at 1 Monument Square. The city began razing City Hall in 2011 to clear the parcel for new construction. City government moved first to the Judge-owned Verizon Building at 1776 Sixth Ave. and then to its current location on the fifth floor of the Hedley Building at 433 River St.

“It’s just a freaking mess that site. Harry never should have torn it down. They should have gutted it and redeveloped it,” said Councilwoman Lynn Kopka, the leader of the Democratic minority.