SARATOGA COUNTY — A partnership between two prominent housing developers to construct townhouses in Round Lake has unraveled to the point where they are headed to court.
Developer Thomas J. Farone, of Gansevoort, who does business as Tra-Tom Development, has filed a lawsuit in state Supreme Court in Ballston Spa against Farone-Amedore LLC, George Amedore Sr., and Amedore Land Developers, according to records filed with the Saratoga County Clerk.
Farone and Amedore formed a partnership in 2005 to build the 80-unit Victorian Landings townhouse development in the village of Round Lake, just off Northway Exit 11. The project won needed village approvals in 2010. Today, portions of the project are complete and occupied, while other townhouses remain under construction.
In going to court, Farone is seeking access to financial records of the Farone-Amedore partnership that he said his accountants have repeatedly been denied — records he suspects will show mismanagement, according to his filing.
Letters included in the lawsuit make it clear, however, that the Amedores also have grievances with Farone: a need for his signature on forms that have to be submitted to the state Attorney General’s Office, $1.1 million in payments due to contractors who aren’t part of the Amedore companies, and a roughly $725,000 mortgage due to expire.
“We are certainly willing to meet with you and the forensic accountants to review any questions they may have, but, as stated above, there are pressing regulations and financing issues that must be addressed,” Amedore attorney Thomas J. Collura wrote in a Nov. 29 letter to William J. Keniry, the attorney representing Farone.
In a different letter, Collura said all the financial information sought was previously provided, a statement the lawsuit calls “manifestly false.”
Collura did not respond to requests for comment on the lawsuit Tuesday.
The Victorian Landings project, which sits at the top of a small hill between the Northway and the central part of the village of Round Lake, was controversial during years of village planning review, though it eventually won approval. Part of that approval allowed removal of sand and gravel; the hill contained sand and gravel deposits that a previous owner wanted to mine commercially, though objections from the village blocked that venture.
In the lawsuit, Farone argues that, as a partner with the Farone-Amedore Limited Liability Company, he is entitled by law to review records, even though Amedore Land Development is responsible for day-to-day construction, marketing and sales activities for the project. Court papers say he’s been denied access to records to “investigate potential wrongdoing, mismanagement and breaches of fiduciary duty.”
In the lawsuit, Farone says he has made repeated written demands for access to the records since June 2017, but his accountants have been given limited access or no access.
The lawsuit seeks to have a state Supreme Court judge require Amedore to disclose all records of the limited liability company, including annual financial statements, from 2005 forward; all federal, state and franchise tax returns; all bank accounts; all profit and loss statements; all cash receipts and dispersal journals; a list of all contractors and subcontractors working on Victorian Landings; all contractors and subcontractors who are related to the Amedore family; documentation of all sand and gravel removal and sales; and other records.
The court filing also asks the judge to impose legal costs for the lawsuit on Amedore. No court date has been set in the case.
The principal of Amedore Land Development is George Amedore Sr., the father of state Sen. George Amedore, R-Rotterdam.