NYC’s ‘Ground Zero Mosque’ that garnered national outrage opening near WTC after 9/11 faces FORECLOSURE for defaulting on $7.5million loan
The 'Ground Zero Mosque', which sparked protests over its proximity to the World Trade Center site after September 11, is being threatened with foreclosure after defaulting on a $7.5 million loan.
Developer Sharif El-Gamal's vacant lot at 49-51 Park Place is being seized, along with his unfinished luxury apartment tower at 45 Park Place.
The site gained national attention when El-Gamal proposed building an Islamic center on the property, just blocks from where the Twin Towers once stood.
After protests in 2010, the plans were shelved and the developer focused on building luxury apartments.
But court records show his company has “repeatedly failed” to make payments, with lender Blueberry Funding seeking permission to foreclose and sell the property.
The site that became known as the 'Ground Zero Mosque' is threatened with bankruptcy for defaulting on mortgage payments totaling $7.5 million
The vacant lot, just a stone's throw from the World Trade Center, would be turned into an Islamic center by the developed Sharif El-Gamal, sparking angry protests from the families of the 9/11 victims.
The demonstrations were met with counter-protests from anti-racism activists who argued that there is a right to religious freedom
Jeremy Doberman, who represents the lender, said the company has tried to negotiate with El-Gamal several times.
His company, Park Place Partners Development, received a notice of default, which the lawsuit says went unanswered, stating he is owed $7.5 million plus interest.
“There comes a time when people's guarantees are no longer good enough and to get money back you have to take the next step,” Doberman said. The real deal. “This is what the legal filing represents.”
The lawsuit seeks repayment of the debt, along with at least $10,000 in legal fees.
The outstanding debt appears to be significantly less than the value of the land if it were developed.
El-Gamal first acquired the dilapidated building in 2009. The property previously housed a Burlington Coat Factory store and had been damaged by the fuselage of one of the hijacked planes.
The store's two sales floors were destroyed when the landing gear of one of the planes broke through during the attacks.
El-Gamal presented plans for a mosque as part of a proposed 13-storey Muslim community center, which would have included a swimming pool, gym, theater and sports facilities.
Blueberry Funding, which lent the money to developer Sharif El-Gamal's company, is seeking the right to take back 49-51 Park Place, along with an unfinished luxury condo tower at 45 Park Place.
The site has a rocky history dating back to when it was first acquired by El-Gamal in 2009, who was given permission to build a mosque despite intense backlash. Pictured: Leaders of several Muslim organizations during a press conference in front of the proposed mosque site near Ground Zero on September 20, 2010
Today the site remains empty, except for a construction crane. In the wake of the protests, which are still ongoing, El-Gamal decided to build luxury apartments on the site. However, the businessman remains positive about his prospects and teases 'big announcements' for the property
Construction was scheduled to begin on September 11, 2011, the tenth anniversary of the attacks.
The plans were divisive, with some families of September 11 victims labeling the proposals as insensitive, while others stressed the need for religious freedom.
Protests against the construction were met with anti-racism demonstrations.
At some point, amid the commotion, El-Gamal quietly shelved the plans and began developing luxury apartments in 2014.
Plans for a smaller Islamic center stalled due to a lack of benefactors and funding.
Today, the 4,700 square meter plot is home only to a construction crane, while the proposed apartments have not yet been completed.
But El-Gamal remains positive about the project's completion next year, following recent success in a foreclosure lawsuit brought by Malaysia's Maybank.
However, Maybank's $170 million position was recently acquired by MSD Partners, which has intensified the foreclosure battle for 45 Park Place.
In a recent email, El-Gamal teased upcoming “big announcements” for the controversial project, the New York Post reports.
All developments will parallel his ongoing execution battles, including in Margaritaville, his Times Square hotel.