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Sackman Enterprises Inc. of Manhattan has proposed replacing the one-story structure with three floors of rental apartments over a ground floor restaurant and beer garden, at 199-201 East Post Road.
Development would take place on 29 acres of the 116-acre property at 1025 Cove Road, off Orienta Avenue.
The sales contract, according to the lawsuit, promised that there were no hazardous substances in the old house in Briarcliff Manor.
“Not only was the city failing to be a cooperative partner in this development, but it was actively attempting to derail the project,” said Jonathan Gertman, NRP Group vice president of development.