Victor’s public hearing on a proposed acquisition of five Eastview Mall parcels ended Monday without a decision. The mall’s owner argued the plan would protect local control and allow needed improvements, while its mortgage lenders said it would undermine their rights in a $210 million loan.
The town is considering acquiring the parcels through eminent domain or a negotiated purchase, then transferring them to Victor 2040 LLC. The dispute intensified before the hearing. As FingerLakes1 reported Monday, the lenders filed a foreclosure action Sept. 8 and submitted written objections to the town’s plan.
Mall owner presses case for local control
Laura DiCaprio, speaking for Victor 2040, said Rialto Capital Advisors, the loan’s special servicer, has delayed approvals and restricted access to funds needed for repairs and new tenants. She pointed to worn pavement, damaged walkways and ceiling damage from a leaking roof, and said work on a proposed hotel and Chick-fil-A had been delayed.
DiCaprio said Victor 2040 would acquire the five parcels while preserving existing leases and keeping the mall open. Victor would hold the property only temporarily, according to the town’s explanation of the proposal.
Paul Wilmot, a board member of Eastview Mall LLC, asked the town to ensure any acquisition leaves tenant rights and Ontario County Industrial Development Agency interests intact. The town’s hearing notice says those interests would be excluded from the proposed taking.
Wilmot said the mall owner has tried to resolve the mortgage dispute. He described a gap between the $210 million loan and what he said is the lenders’ current $112 million valuation of the property. That valuation was his account at the hearing, not a finding by the town.
Mark McNamara, a Barclay Damon attorney serving as the hearing officer, said Victor 2040 has agreed to reimburse the town for acquisition costs if the project moves forward. Those costs would include compensation for property interests taken, as well as legal, appraisal and consulting expenses. The town’s August resolution authorized the review process; Monday’s hearing did not authorize an acquisition.
Lenders reject claims of stalled investment
Keith Brandofino, an attorney for the lenders, disputed the assertion that Rialto has deprived the mall of money for operations and improvements. He said the loan has been in default since 2022, the lenders granted extensions and Rialto has released funds for operating expenses, tenant improvements and taxes.
The lenders’ Sept. 25 objection letter puts disbursements from January through September at about $9.4 million. The account records cited in that letter were not included in the copy provided to FingerLakes1.
Brandofino argued that the proposed acquisition would return the property to an entity affiliated with Wilmorite while forcing the lenders to accept less than full repayment. He also challenged the clarity of the town’s notice and said the lenders had not received records they requested concerning discussions between Victor officials and the mall owner. Those are the lenders’ claims; no court has ruled on this five-parcel proposal.
The lenders are seeking a receiver to operate Eastview during foreclosure. Brandofino said he expected one to be appointed soon, but the hearing did not establish that an appointment had been made.
The legal dispute has a precedent at Eastview, though it concerned different property. A state appeals court rejected Victor’s first proposed taking of the former Lord & Taylor site in 2022, finding the town had not identified a sufficient public purpose. The court upheld a revised plan in 2024. Neither ruling decides the current proposal.
Written comments due Nov. 30
Brandofino asked for more time for the lenders and any future receiver to participate. McNamara said oral testimony was ending Monday night, but the hearing record would remain open for written submissions from all parties and the public until 5 p.m. Nov. 30.
The Town Board took no vote on the five parcels Monday. Written comments must reach the town supervisor’s office at Victor Town Hall, 85 E. Main St., Victor, NY 14564, by the deadline to become part of the hearing record.
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