Tuesday, November 17, 2020
State Supreme Court Approves $45.5 Million Sale of 107-Acre Campus
Nyack College has been given the green light to move forward on its sale to Yeshivath Viznitz D K Hal Torath Chaim Inc., a Hasidic congregation.
A state Supreme Court judge in Manhattan approved the $45.5 million sale of the 107-acre college campus. After receiving a letter of no objection from the New York State Department of Education and an endorsement of no objection from the New York State Attorney General's Charities Bureau, the court was satisfied that the sale of the property promoted the interests of Nyack College.
Nonprofit organizations are required to show the AG's office a fair market transaction is taking place. The original contract of sale was dated June 18th, 2020, with KAL Torath Chaim Inc., who assigned its rights to the Yeshiva Viznitz.
The Attorney General's role was to determine that the terms of the transaction are "fair and reasonable." The endorsement of no objection demonstrates the propriety of the transaction.
The proceeds will pay the closing costs of $2.5 million, including the $1.25 million broker's fee and price to extend the payment deadline on the college's loan, according to the decision. The sale includes the college's $38.5 million debt to Procida Funding, according to the judge's decision. The contract also allowed the buyer to give a purchase money mortgage to Nyack College in the amount of $6 million, payable within one year. The order does not state whether or not the buyer exercised that option.
Nyack College must notify the Charities Bureau when the transaction closes, if it's been abandoned, or if it is still pending 90 days from the court's order.
The congregation plans to operate as a religious school for 250 college students, 250 high school aged students, plus an unspecified number of faculty, staff and family members to live on campus.
Meanwhile, the Village of South Nyack is pressing ahead to respond to a petition filed by a group of citizens to dissolve the Village to lower taxes and pool resources. On Monday, the board unanimously voted to hire consultant CRG to give residents the "facts and figures" entailed in a village dissolution, according to Mayor Bonnie Christian.
Efforts to fold the village into the Town of Orangetown are a response to the pending sale of the college, presumably to a yeshiva. The petition seeking dissolution of the Village, which had slightly more than the required number of signatures, was certified by the Village Clerk on August 24th. The South Nyack Board of Trustees has set a public vote for dissolving the government for Dec. 17th.
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