Middletown Board of Estimate approves cleanup of tax-credit agreements for O and W project, readies closing

The Middletown Board of Estimate approved minor clerical changes to three tax-credit-related agreements for the O and W Prime LLC project and moved the deal toward a planned Friday closing.

The board, meeting briefly, agreed to updates to an assignment-and-assumption agreement, an amended-and-restated agreement and an amended-and-restated lease tied to capital improvements for the project. Unidentified Speaker, who led the meeting, said the documents had already cleared council review and the project's tax-credit attorneys, identified in the transcript as Blake and Hostler.

"We are planning on closing on Friday on the O and W," the Unidentified Speaker said. The speaker added the changes were minor and that "nothing changed money wise" after a numeric adjustment from 9.7 to 9.8 was noted in the discussion.

The meeting record shows the assumption agreement is between the City of Middletown and O and W Prime LLC, described as the prime tenant, and that the lease documents address capital improvements, with the speaker referencing a 9.8 figure "less whatever they raise in their capital campaign." The speaker said daily coordination calls — about 41 entities on the calls — had been ongoing and emphasized the need to present clean contract copies to avoid delaying the closing.

Unidentified Speaker said an insurance package had been sent and was awaiting one remaining item from Fusco before readiness to close. The board was told contracts would likely be awarded Monday, with roughly a 30-day period to execute contracts and prepare, and construction activity potentially beginning in January or February for the spring construction season.

The board moved to sponsor a resolution to finalize the cleanup documents; the motion was made by Mister Massey and seconded by President Rodriguez. Two "Aye" votes were recorded and the motion carried. The transcript indicates the full board was present at roll call but does not record a full roll-call vote tally by name.

After the vote, the board noted one transfer item from "JJ" had not been submitted in time, and the meeting adjourned.

What happens next: the board intends to complete the closing steps, award contracts and begin construction preparations; a final closing and contract-execution timeline depend on receipt of the remaining insurance item and completion of contract documents.