At an informal debate held after the council meeting Tuesday night, mayoral candidate Anthony Gallo said he’d consider defaulting on the City’s Land Development Agreement with the waterfront redeveloper RXR Glen Isle.
This came in response to an anonymous written question posed to Mr. Gallo about whether he’d break the agreement related to the Waterfront. A potential default on the LDA has been estimated to cost at least $30 to $40 million in reimbursements to the developer, in addition to what Mayor Spinello called “clawbacks” on state and federal grants.
Gallo compared the cost to the planned Tax Increment Financing, although so-called TIF debt would not be backed by the “full faith and credit” of the City and the only recourse in the event of default on those bonds would be to the developer.
The contractor who handles streaming of council meetings said video of the six-question debate would be made available on Youtube sometime on Wednesday.
Gallo’s statement comes a week before the mayoral elections though could add to investors’ uncertainty regarding the waterfront development and others, more so if he is elected.