A Bedford resident is suing the town to stop a Chinese developer from building an extra “palace” home, in a deal that removed a land-use restriction ostensibly to protect turtles.
The Bedford town board “has become complicit in helping a sophisticated developer turn a real estate investment into a more profitable one,” the petition states, “at the expense of the rule of law and the property interests of neighboring owners.”
Bruce Fiedorek, who lives on Upper Hook Road opposite the site, sued the town of Bedford, America Capital Energy Corp. and New York Bedford Castle Co. on June 4 in Westchester Supreme Court.
The petition asks the court to set aside a deal that Bedford made with the developer to remove a restrictive covenant on the property.
Bedford, which once owned the property, sold the land in 2003 to private equity investor Paul Bluhdorn and imposed the restrictive covenant. No more than two residential lots could be developed on the 36.5-acre parcel.
Bluhdorn paid $3.25 million for the land, according to county property records. He had also bought the adjacent 60.8 acres for $3.25 million in 1993.
In 2011, he sold the properties to New York Bedford Castle Co., care of America Capital Energy Corp. of Manhattan, for $12.5 million.
The companies are affiliates of ZhongRong Property Group of Shanghai, controlled by Ni Zhaoxing, also known as Zhao Xing Ni.
America Capital has proposed subdividing the properties into 10 residential parcels.
The plan, according to ZhongRong”™s website, is to build 10 “artistic palaces,” designed in classic European architecture, with elegant and luxurious interiors in the “Chinese gentility concept.”
Last year, the Bedford planning board recommended changing the restrictive covenant to allow three residential lots instead of two, on the 36.5-acre parcel. That would allow the developer to relocate a proposed lot from the 60.8-acre parcel, to protect a turtle habitat.
The planning board also approved the developer”™s request to pay $1 million to a housing fund, instead of building one affordable housing unit, as required by Bedford”™s zoning.
The town board adopted both recommendations.
Fiedorek, who bought his property for $2.6 million in 1995, according to county property records, claims that loss of wetlands, stormwater runoff, increased traffic on Upper Hook Road, loss of scenic view and other impacts would harm him.
Bedford gerrymandered the restricted land to accommodate the turtle habitat, the petition states, “but really, to accommodate the developer”™s business plan to build ten, instead of nine, luxury houses.”
Fiedorek argues that New York law binds the developer to the covenant and that the town is not entitled to rewrite the terms it imposed on Bluhdorn 16 years ago.
The petition describes the permission to pay $1 million instead of building one affordable house as evidence of Bedford”™s “disturbing ”¦ malleability.”
“Lest there be any doubt as to what the developer was purchasing for its $1 million,” the petition states, “the developer is only releasing the money after certain events occur.”
The first $333,333, for instance, was conditioned on removing the restrictive covenant.
“In a single night”™s work, the board simultaneously increased the development”™s density,” according to the petition, “and decreased affordable housing, all for the benefit of the special interests of a corporate developer.”
Bedford Supervisor Chris Burdick and an attorney for the developer did not immediately respond to emails asking for their side of the story.
Fiedorek is represented by Cross River attorney Michael F. Sirignano.
