COBBLE HILL — The coalition chosen to buy and redevelop Long Island College Hospital withdrew a lawsuit Friday afternoon — after claiming state officials hadn’t acted in good faith during contract negotiations.
Brooklyn Health Partners won the bid to develop a full-service hospital at the Cobble Hill site but reports that the three-month coalition might not be able to deliver on its proposal sparked criticism from labor unions and Mayor Bill de Blasio this week.
The BHP motion was heard Friday afternoon in Brooklyn Supreme Court. BHP withdrew the case without prejudice and is expected to continue negotiations with the State University of New York on Monday.
Justice Johnny Lee Baynes asked representatives from BHP to produce documentation on Monday proving its ability to deliver on the winning bid.
“Brooklyn Health Partners, per Judge Johhny Lee Baynes' instruction, is prepared to close its transaction with the State University of New York on Monday, May 5, 2014,” Donnette Dunbar, a spokeswoman for BHP said.
BHP proposed a hospital with 300 to 400 beds and 1,000 residential units with some affordable housing. The company has until Monday to sign a contract with SUNY. If negotiations don't go through, the state could begin talks with the next highest scoring proposal — the Peebles Corporation whose $260 million proposal would provide a 24-hour freestanding emergency department, an urgent care center, residential units and affordable housing.
The lawsuit was filed Wednesday evening after the state told BHP, in a letter dated April 30, that it had reached a preliminary decision that BHP could not meet the expectations of the proposal, BHP’s attorneys said Friday.