For Immediate Release:

12/30/15
Michael E. Lundy, Lundy Development and Property Management
315-783-9696

Local Company Files Suit Against COR

Michael E. Lundy, CEO of Lundy Development and Property Management, has filed a lawsuit in
Supreme Court in Jefferson County against the Syracuse developer, COR Real Property Company,
LLC.. The lawsuit is seeking restitution and damages for work performed by Lundy Development and
Property Management in relation to a housing and commercial project planned for the Village of West
Carthage in 2011-2012. The project was to have built a 364 unit housing development, locating 1000
new residents, and established the potential for a group of local business investors to develop a
commercial/retail development in front of the housing complex, along Route 26 in the Village of West
Carthage. The project would have provided necessary housing for military families and others, as well
as the recruitment of national chain stores and more regional businesses. The overall economic impact
to the local Villages of West Carthage and Carthage, and the surrounding Towns of Champion and
Wilna would have been one of the largest in the Greater Carthage Areas history.
The lawsuit states that Lundy Development and Property Management and COR entered into several
contracts to develop property for commercial and residential purposes in West Carthage. The lawsuit
states that COR breached its contracts with Lundy Development, committed civil fraud and negligently
made misrepresentations to Lundy regarding CORs interest and sincerity in the project. It states that
contracts requiring performance of a number of obligations by Lundy, were all met. Examples of the
services performed to their completion and satisfaction of the contract between Lundy Development
and COR include: survey, subdivision approval, zoning changes, utility and drainage easements, DEC
approvals, traffic studies, environmental reports and processes, numerous engineering, construction,
water, sewer and utility drawings; to various agencies (local and state), and continuous representation
at local government and public meetings.
While the work was being performed and reports filed with COR, there was constant communication
between the parties and everything was moving forward as planned, with assurances from COR
executives. On January 3, 2013 an unannounced letter to Lundy from COR cancelled the entire
purchase agreement and project without any explanation. COR's letter stated "Contingencies in our
Purchase Agreement cannot be satisfied and the agreement is terminated as of this date." Yet,
According to an article in the Watertown Times dated April 17, 2013, Plans for a 364-unit apartment
complex in West Carthage were scrapped in January because a market study commissioned
by COR Development Co. created serious concerns for financiers, according to COR General Manager
Steven F. Aiello. "We would have been pleased to have done the project there, but the market study didn't
support it. There were financial challenges getting the project built there," Mr. Aiello said. "We have an
obligation to the state to make sure the project had the best opportunity to be successful."
Edward J. Sheats, Sheats and Bailey, PLLC, attorney representing Mr. Lundy strongly rebuts that
statement in the paper. Although we have been told about and given the reasons of this so-called
study (that we have never seen) as a contingency to cancel the project, our stance is that the study
was not a contingency in the contract agreed upon. If it was to be a relevant part of the contract COR

should have made sure it was a contingency. Mr. Lundy fulfilled all his obligations under the
contract.
Thereafter and in April of 2013, approximately three months after purporting to terminate the Purchase
Agreement for the West Carthage project due to the unspecified failure of "contingencies", COR
announced the aquisition of Mercy Hospital in Watertown. According to the allegations, COR was
secretly involved in developing the Mercy project in Watertown at the time it was requiring
performance by Lundy for the West Carthage project. COR required strict secrecy by Lundy
regarding the West Carthage project, with COR doing so knowing that it was proceeding with and
intending to develop the project in Watertown, and also knowing that it either could not or would not
obtain financing for both projects. Mr. Lundy further elaborated. Nothing against the Mercy
Project. That is great for the City of Watertown, but the fact remains we were all moving along in
West Carthage and its obvious Mercy became more appealing to COR and quite frankly they just
discarded us.

Another very important issue being raised in the lawsuit involves the awarding of a $2.1 Million New
York State grant through a program tilted the New Economic Development Incentives that was
originally designated for the West Carthage Project. Mr. Lundy states that the Grant was awarded to the
West Carthage project based upon all of the work mentioned previously. When COR terminated our
project, we believe that they misled the economic and governing agencies into believing that there was
just cause to do so, which in turn led to the grant being wrongly re-directed towards the Mercy
projectwhen in fact it should have still been for our viable project here in West Carthage. Very
simply, without the work that we performed for the West Carthage project COR would not have even
been able to apply for the grant. There is more at stake here than just the investment my company has
lost, but the millions of dollars of economic impact that should have occurred in the Village of West
Carthage, its citizens, and the surrounding communities.
Finally, even after the contract was terminated, Mr. Lundy reached out to try and reach a settlement for
the services performed, which totaled several hundred thousand dollars, but the large multi-million
dollar developer basically ignored any kind of resolution. I tried to see if there was anything we could
do to get the West Carthage project to still move forward and when we got no reaction I then tried to
get paid for all of the services we performed on their behalf. I was basically ignored! I was left with no
recourse but to file this suit. It seems to be a classic example of a large multi-million dollar, connected
developer basically using a local developer and local officials, to get what they need, leveraging it to
their benefit, and not telling everyone involved the entire story. Now we are forced to try and settle this
through litigation.