Asbury Park to issue notice of default to development company for failure to maintain historic buildings

The City of Asbury Park issued an initial notice in September of 2021 for failure to maintain the convention hall.

News 12 Staff

Jan 11, 2023, 12:09 PM

Updated 558 days ago


The City of Asbury Park is set to issue a notice of default to Madison Marquette for failing to develop and maintain the casino building in the city’s south end.
The City of Asbury Park issued an initial notice in September of 2021 for failure to maintain the convention hall. That is still in effect, but a new resolution expected to be introduced at Wednesday’s council meeting will add the casino building and the power plant.
“This resolution is straight from the contract. It's what the city is required to do legally to take the first steps to get Madison Marquette. Pass a resolution holding them in default and then 30 days – Madison gets 30 days to repair this, which they will never do in 30 days,” said Asbury Park historian Tom De Seno.
The resolution reads in part:
I. Failure by MA Retail to meet their obligations to use commercially reasonable efforts to diligently undertake the construction, development, operation, and maintenance of the Casino Building and achieve Completion of construction on such project, as required by Section 3.02(j) of the SDA.
2. Failure by MA Retail to cause the Casino Building to be developed, financed, constructed, operated, and maintained, as required by Section 3.02(h) of the SDA.
3. Failure by MA Retail to develop, finance, construct, operate and maintain the Casino Building in accordance with the Waterfront Redevelopment Plan, as required by Section 3.02(i) of the SDA.
In 1984, a series of bankruptcies eventually led Madison Marquette to control and own the properties. De Seno believes the only way to settle the dispute between the city and developer is in court.
“My own surmise is that Madison wants these buildings to go away so they can use the land for a more profitable endeavor but that's not what they signed to do. They signed on to redevelop them and if they have a different plan, they should stop the media silence and come out and say so,” he said.
News 12 reached out to Madison Marquette for comment, but did not hear back. A spokesperson for Asbury Park says that they cannot comment on the situation beyond what was stated in the resolution due to the potential litigation. 

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