By Julie Shapiro
DNAinfo Reporter/Producer
FINANCIAL DISTRICT — General Growth Properties owes New York City $500,000 in back rent and late fees for the South Street Seaport, the city said in court papers filed last Friday.
The city’s claims date back to 2003 and criticize General Growth for changing the way it calculates its rent, the Wall Street Journal reported Tuesday.
General Growth, the second largest mall owner in the United States, has a long-term lease with the city for Pier 17 and adjacent Seaport property. GGP declared bankruptcy last year and hopes to emerge with a new structure later this year.
Two years ago, the city Economic Development Corp. was working closely with GGP on a redevelopment plan for the Seaport that included a new 500-foot tower. GGP put those ideas on hold after declaring bankruptcy, and now it appears that relations between the company and the city have deteriorated.
General Growth disputes the city’s claims and will file a response with the US Bankruptcy Court in Manhattan, the Journal reported.
