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195 State St., Springfield

(File photo / The Republican)

SPRINGFIELD — David Nyberg, a developer chosen by the city in 2011 to convert the former School administration building on State Street into market rate housing, said Tuesday he knows the work has dragged, but is confident he could finish the project if allowed by the city.

Mayor Domenic J. Sarno, however, said Tuesday that the city stands by its announcement on Monday that it is filing a "breach of contract" complaint against Nyberg and his development group, 195 State Street Real Estate LLC, and taking back the vacant property to seek another developer.

Nyberg said he apologizes for the delayed work, and is “very appreciative” of the city’s past patience. He hopes the city will be willing to give him additional time for a planned 35-unit market rate housing project at 195 State St., he said.

“Too bad,” Sarno said. “He has been given more than sufficient time to follow through on this project.”

The city had sold the property to the developer in October 2011 for $1, with the price deemed justified given the challenges and the investment planned.

At that time of the sale, the company was proposing major interior renovations for at least 30 market-rate apartments, with a publicized timetable of nine to 12 months, officials said.

Sarno said the city is committed now to finding a developer who is able to convert the site to market-rate housing. The city, and residents and business along the State Street corridor had waited long enough for Nyberg’s group, Sarno said.

Nyberg, of Acton, listed as manager of the company, said the firm had invested about $500,000 in time and money into the project including the removal of asbestos and framing work inside the building. There were “extenuating circumstances” that caused the delay in work since 2011, he said, choosing not elaborate.

“I take responsibility,” Nyberg said. “I hope the city will be cooperative. There has been an incredible financial commitment on our part.”

Sarno said the city had a "claw-back" clause in the agreement that allows it to take back the property if the work did not proceed. The breach of contract complaint is being filed in Hampden Superior Court, Sarno said Monday.

Nyberg said he expects he could finish the project in six to nine months “if the city was so gracious to work with me.”

“We can absolutely do it, no question about it,” Nyberg said.

Kevin Kennedy, the city’s chief development director, said the State Street property is too important to allow it to remain dormant.

The School Department moved to the former federal courthouse building at 1550 Main St., in downtown Springfield, leaving the former building for sale. The building was constructed in 1905, and had challenges including asbestos and the need for new elevator core and a new heating, ventilation and air conditioning system.

The building was added to the National Register of Historic Places in 1983.

The market rate project had an estimated cost of $3 million when first proposed in 2011.