Legal dispute brewing over Troy City Hall lease agreement

TROY, N.Y. (NEWS10) — Troy City Mayor Carmella Mantello promised a new city hall in 2027, and said the city is terminating the current lease at the Hadley Building, early. However, the landlord said not so fast. First Columbia is that landlord and they said the city missed the deadline for early termination of the lease agreement.

Regardless of the logistics, some folks in Troy like Sophia Vasquez said, “I support it completely.”

Others like lifelong resident Bill Dallas said, “We do need a new city hall, yes. Although where it is, it’s convenient.”

Mayor Mantello said she’ll make her announcement on the chosen location in the coming weeks. Spokesperson Alex Horton with the mayor’s office claims the city is getting out of their lease early and moving on, “The City of Troy has lawfully and timely exercised its option to terminate the lease with First Columbia at 433 River Street. On January 1st, 2027, we expect to be in a new City Hall site approved by the City Council.”

However, lawyers representing the landlord of the current city hall building say differently.

Partner and Chief Executive Officer for Tully Rinckey Michael Macomber explained, “There was a very specific provision included that requires city council to approve a new site before the early termination provision could be effectuated.”

Troy City Council President Sue Steele said the council is in the dark, “We have not been made aware of any location. The whole process regarding city hall has been shrouded in secrecy.”

Macomber said the city failed to meet deadlines for an early termination and could still be on the hook for lease payments up to January of 2029. “It’s a legal phrase that condition precedent hasn’t been met. And therefore, the early termination it was a onetime early termination up until June 1st. That date has now come and gone.” The attorney went on to explain, “They may be obligated to be paying lease payments to First Columbia.”

The back and forth over the new city hall has some Trojans in the Collar City concerned.

“I think Troy, being the prominent city that it is, should have a one location that says this is Troy City Hall. This is where you can go to get this stuff done. It doesn’t make sense to have two spots like that,” said Zach Garcia.

Madison Wagner who works at Bootleggers on Broadway said she is behind the mayor, “Change is good, obviously. But if she’s proposing a new building and it’s more beneficial, there’s also always like deals with lease agreements, I actually know that personally on issues with that. So there probably is the way for her to get out of it.”