Prism pays approximately $300,000 to cure two notices of default on downtown redevelopment

Prism Capital Partners paid its delinquent property taxes and redevelopment escrow account today, Friday, Dec. 7, according to an e-mail from Mayor Robert Parisi to the town council.

These payments, which were previously identified as amounting to more than $300,000, appear to cure two notices of default of the 2006 Redevelopment Agreement between Prism and the township. The agreement specifies Prism’s exclusive right to development in the downtown redevelopment area, including the Edison Battery Factory. Failure to cure the defaults would have allowed the township to end the agreement and Prism’s designation as the redeveloper.

On Nov. 14, the township sent Prism a notice of default for failure to pay $173,246 to an escrow account to cover town redevelopment expenses for the period ending July 1. Prism had until Dec. 11 to cure this default.

On Nov. 20, the township sent Prism a notice of default for failure to pay Nov. 1 quarterly property taxes of $123,944. With penalty interest, that amount was more than $135,000. Prism had until Dec. 26 to cure this default.

On October 26, the township sent Prism a letter demanding information on its obligation to notify the township of a material adverse change to its financial condition relating to the foreclosure proceeding on Prism’s Barton Press property in the redevelopment area. The action commenced in December 2012, but was not disclosed to the township. The letter also asked about any other legal actions and requested financial information. Prism had 10 business days to comply, but had not provided information as of the Dec. 4 council meeting. The mayor’s brief e-mail did not address this issue.

Joe Krakoviak is a West Orange Township Councilman, since 2010. He can be reached at jkrakoviak@westorange.org. A former financial journalist, in his spare time he’s a business communications consultant.